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If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 4% interest, what is the immediate effect on the money supply?

If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 4% interest, what is the immediate effect on the money supply?
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5 votes
If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 4% interest, what is the immediate effect on the money supply?

User Magnar Myrtveit
by
8.6k points

2 Answers

3 votes

Answer:

It is decreased by $80,000

Explanation:

a.p.e.x ;)

User Mrbrdo
by
8.2k points
5 votes

Answer:

It is decreased by $80,000

Explanation:

User Gavin Wong
by
8.7k points
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