Banks as Payment Plumbing Monetary Policy 101

#MonetaryPolicy101 is a weekly series about the basics of monetary policy. This is the fifth Post. See Post 1 here [https://www.crisesnotes.com/purchase-and-sale-policy-monetarypolicy101/], Post 2 here [https://www.crisesnotes.com/central-bank-collateral-policy-monetarypolicy101/], Post 3 here [https://www.crisesnotes.com/payment-systems-monetary-policy-101/] and Post 4 here [https://www.crisesnotes.com/banks-as-debt-monetizers-monetary/
6 weeks ago I wrote [https://www.crisesnotes.com/a-quarter-of-the-2-trillion-dollar/] about a key provision of the CARES act which devoted 454 billion dollars in congressional appropriations to, in essence, insuring the Federal Reserve against losses it would otherwise take related to its crisis actions. At the time I referred to