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If the Federal Reserve sells $50,000 in treeasury bonds to a bank at 6% what is the immidiate effect on the money supply
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If the Federal Reserve sells $50,000 in treeasury bonds to a bank at 6% what is the immidiate effect on the money supply

User AlexanderLedovsky
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$2400.00 of interest charge of 50000
User Blocks
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It is increased by $60,000. The immediate effect on the money supply is that it will increase banks' excess reserves which they may lend out.
User George Botros
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