Register
If the Federal Reserve sells $40,000 in Treasury bonds to a bank at 5% interest, what is the immediate effect on the money supply? a. It is decreased by $40,000. b. It is increased by $42,000. c. It is
44.1k views
4 votes
If the Federal Reserve sells $40,000 in Treasury bonds to a bank at 5% interest, what is the immediate effect on the money supply?

a. It is decreased by $40,000.
b. It is increased by $42,000.
c. It is decreased by $42,000.
d. It is increased by $40,000.

User Lukas Winzenried
by
8.2k points

2 Answers

1 vote

Answer:

It is decreased by $40,000

Step-by-step explanation:

A p e x :)

User Michael Bromley
by
7.3k points
5 votes
The Answer is A, Decreased by $40,000
User Miesha
by
7.8k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

8.6m questions

11.3m answers

Other Questions

Who was Adam Smith ? Anybody?
What can turn igneous rock into sediment?
In what way did the GI Bill contribute to the growth of professional and white-collar jobs ? A.by providing US laborers with new job-training programs B.by giving US veterans assistance to purchase a new
What is meant by data mining ?
What is the best way to describe a stock market?
Link Copied!