A commercial bank sells a Treasury bond to the Federal Reserve for $100,000. The money supply: a.
Question:
A commercial bank sells a Treasury bond to the Federal Reserve for $100,000. The money supply:
a. increases by $100,000.
b. decreases by $100,000.
c. is unaffected by the transaction.
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When a commercial bank sells a Treasury bond to the Federal Reserve it receives money in exchange ...View the full answer
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Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
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