If the Federal Reserve sells $50,000 in Treasury bonds to a bank at 6% interest, what is the immediate effect on the money supply?

asked Nov 3, 2017 150k views

3 votes

7.9k points

Please log in or register to add a comment.

3 votes

Answer:

It is decreased by 50,000.

Explanation:

Aritra B answered Nov 5, 2017

7.8k points

3 votes

I don't understand the question that well let me know if I'm doing this wrong 50,000x6%=
3,000

50,000+3,000=
53,000

8.1k points

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.5m questions

12.2m answers