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When it buy bonds- that money goes into the economy hence increasing the money supply

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Q: How does the Fed increase the money supply when it buys bonds?
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Related questions

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


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 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 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


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


What best explains why the money supply is increased when the fed buys treasury bond?

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 best describes the use of open market operations to influence the money supply?

The Fed buys and sells Treasury bonds in the bond market.


How does the federal reserve buy and sell government securities?

This is called open market operations, they do this to increase the money supply, buy buying bonds or decrease the money supply by selling. They do this to control interest rates and inflation.