answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: Why does money increase when the Fed buys treasury bonds?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Which of the following actions is most likely to result in an increase in the money supply?

The Fed buys millions of dollars in Treasury bonds


Which of the following is most likely to result in an increase in the money supply?

The Fed buys millions of dollars in Treasury bonds.


What are the following actions is most likely to result in an increase in the money supply (Apex?

The friend buys millions of dollars in Treasury bonds


Which diagram provides an accurate example of how the government uses open market operations?

the money supply is increased


What best explains why the money supply is increased 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


Which of the following actions is most likely to result in in an increase in the money supply?

The discount rate on overnight loans is lowered.


What best explains why the money is increased when Fed buys treasury bonds?

There is no following provided?


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


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


The fed buys 5 billion worth of treasury bonds on the open market what effect does this have on the money supply?

The Fed sells $5 billion worth of Treasury bonds on the open market.