Question: Read article below https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci15-8.pdf How is it the case that the Fed's purchase of an asset from a non-bank institution turns out to increase the

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https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci15-8.pdf

How is it the case that the Fed's purchase of an asset from a non-bank institution turns out to increase the level of reserves held by banks at the Fed itself?

Why was the increase in total reserves accompanied by a rise in excess reserves? Was such rise a signal of the banks' reluctance to lend to non-financial institutions?

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