0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What describes how lowering the required reserve ratio reduces the money supply?
When the required reserve ratio is lowered, banks can loan out more money.
Which best explains why the money supply is decreased when the government issues bonds?
The purchase of bonds reduces the bond buyers' bank accounts.
How does the Fed increase the money supply when it buys bonds?
When it buy bonds- that money goes into the economy hence increasing the money supply
How does the Fed expand the money supply?
The Federal Reserve expands the monetary supply by buying government bonds and lowering interest rates. This allows for more money to be put into circulation, making it available for banks and consumers.
What is tight money?
monetary policy that reduces the money supply
What of the following best explains why the money supply is increased when the Fed buys T-bonds on the open market?
The purchase of bonds increases the amount of deposits in people's bank accounts, which enables banks to loan more money
What explains why the money supply is increased when the Feds buy treasury bonds?
When the Fed buys Treasury bonds, it increases the amount of deposits in people's bank accounts.The purchase of bonds increases the amount of deposits in people's bank accounts, which enables banks to loan more money
Selling bonds will?
increases money supply
What best explains why the money supply is increased when the feds buys treasury bonds?
When the Fed buys Treasury bonds, it increases the amount of deposits in people's bank accounts.The purchase of bonds increases the amount of deposits in people's bank accounts, which enables banks to loan more money
What best explains why the money supply is increases when the feds buys treasury bonds?
When the Fed buys Treasury bonds, it increases the amount of deposits in people's bank accounts.The purchase of bonds increases the amount of deposits in people's bank accounts, which enables banks to loan more money
What best explains why the money supply increases when the fed buys treasury bonds?
When the Fed buys Treasury bonds, it increases the amount of deposits in people's bank accounts. The purchase of bonds increases the amount of deposits in people's bank accounts, which enables banks to loan more money
When banks make loans the money supply increases or decreases?
When banks make loans, the money supply increases, since the people who receive these loans will have more money.
