Earlier quoted context omitted.
when the fed writes a check to a bank, the money isn't deducted from an account, it's new money created out of thin air. when the fed receives a check from a bank, the money doesn't get deposited and stored in some account, the money just stops existing.
Any source to back this statement? I’m curious if fed actually destroyed the money after repayment
literally any macroeconomics textbook. it's the whole point of the fed.
terms to google: "monetary policy", "open market operations"