The issue is not that the Fed creates money with open market operation.

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At this stage, when the bank makes a loan, the money supply rises by more than the amount of the open-market operation.

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The monetary expansion following an open-market operation involves adjustments by banks and the public. (To find out more, see Formulating Monetary Policy.) The bank in which the original check from the Fed is deposited now has a reserve ratio that may be too high.

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The only way that a fair price is achieved for any economic goods is the operation of the open market.

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It has a nursery, a Community Supported Agriculture operation and, of course, a farmers market open on Thursdays and Saturdays with locally produced produce eggs, meats, poultry, cheese and other goodies from the area.

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