How does a bond sale by the fed affect the money supply?

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asked Apr 17, 2018 117k views

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ZokiManas · Answer 1 · 2018-04-21T16:29:10+0000

A bond sale is a debt investment that is given by an investor to a particular corporate or governmental entity and is payable over a period of time at a variable or a fixed interest rate. It can affect the money supply, or the money of the country, because it encourages debtors to keep loaning from the government to finance their personal interests.

How does a bond sale by the fed affect the money supply?

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