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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?

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?
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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?

User Darrell Teague
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2 Answers

4 votes

Answer:

it is decreased by $50,000.

Explanation:

User Pnschofield
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3 votes

Answer:

Decreased by 50,000

Explanation:

User Sperumal
by
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