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If the federal reserve rate sells 40,000 in treasury bonds to a bank at 5% interest what is the immediate effect on the money supply ?

If the federal reserve rate sells 40,000 in treasury bonds to a bank at 5% interest what is the immediate effect on the money supply ?
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If the federal reserve rate sells 40,000 in treasury bonds to a bank at 5% interest what is the immediate effect on the money supply ?

User Jan Tattermusch
by
8.2k points

1 Answer

6 votes
formula is pni
_____
100

=. 40,000 × 5
'______. = 2,000 totally answer
100
User Shadowhorst
by
7.7k points
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