From where does the Federal Reserve Bank get it's money?
It's very simple. Either you can answer it or you can not.
If you can, do.
If you can't, say so.
Cough up a response, Princess.
L
Well, Jennifer, banks have accounts at the Fed. So pretend 1st National Bank of Hooterville has a balance of $1,000,000. Now the Fed wants to buy $10,000,000 of securities held by the 1st National Bank of Hooterville. The bank sends the securities to the Fed and the Fed adds $10,000,000 to the account of the bank. They can see it on their computer screen and the Fed will even send them a nice statement at the end of the month showing their balance held at the Fed is now $11,000,000.
If you need any more help, be sure to ask, honey.