Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The government buys security bonds they pay with excess reserves than the bank loans out the money from the bond, which they turn a profit
"The government buys security bonds they pay with excess reserves than the bank loans out the money from the bond, which they turn a profit on from the interest of the loans."
Could you please elaborate on what you mean by that statement?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started