Question

If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 4% interest, what is the immediate effect on the money supply?

A. It is decreased by $80,000.
B. It is decreased by $3200.
C. It is increased by $3200.
D. It is increased by $80,000.

Answer 1

It is decreased by $80,000 Apex

Answer 2

"It is decreased by $80,000" is the one among the following choices given in the question that would be an immediate effect on the money supply. The correct option among all the options that are given in the question is the first option or option "A". I hope that this is the answer that has actually come to your desired help.