Putting Your Money Into Treasuries or Bank Deposits?

The Fed was changing the composition of money available to non banks. There were or treasuries and more bank deposits. So it wasn't so much as increasing the quantity of money, as just changing the composition. If you can't bein credit resou have to stay in treasuries. It also increases the reserve levels of the banking sector. And for banks they don't really want zero yilding as well. All this happens through the portfolio rebalancing mechanisms of both banks and non banks.