# Why do reserves increase when the Fed buys bonds? (Introduction to Macroeconomics)

A question asks, "If the federal funds rate were above the rate the Fed had targeted, the fed could move the rate back towards its target by _" and then the options are buying/selling bonds, and this would increase/decrease reserves. According to the answer sheet it says buying bonds, which would increase reserves. Why would that be?

So when Fed wants to buy \$1000 bond it creates \$1000 worth of new reserves.