Register

If the federal reserve sells 70,000 in treasury bonds to a bank at 9% interest, what is the immediate effect on the money supply?

If the federal reserve sells 70,000 in treasury bonds to a bank at 9% interest, what is the immediate effect on the money supply?
asked 165k views
0 votes
If the federal reserve sells 70,000 in treasury bonds to a bank at 9% interest, what is the immediate effect on the money supply?

asked
User Droidpl
by
8.2k points

2 Answers

1 vote
D , - if the Fed sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds.

answered
User Komang
by
7.6k points
3 votes

Answer:

It is decreased by $70,000.

Explanation:

took the test

answered
User Tilpner
by
8.0k points
← Prev Question Next Question →

No related questions found

Ask a Question
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories

Other Questions

How do you can you solve this problem 37 + y = 87; y =
How do you estimate of 4 5/8 X 1/3
A bathtub is being filled with water. After 3 minutes 4/5 of the tub is full. Assuming the rate is constant, how much longer will it take to fill the tub?
Link Copied!