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Q: What best explains why money supply is decreased when the government bonds?
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Which best explains why the money supply is decreased when the government issues bonds?

The purchase of bonds reduces the bond buyers' bank accounts.


What explains what happens when a company or government issues bonds?

The company or government goes into debt to those who purchase the bonds.


What best explains what happens when company or government issues bonds?

the company or government goes into debt to those who purchase the bonds


What best explains what happens when a company or government issues bonds?

The company or government goes into debt to those who purchase the bonds.


Why is the money supply decreased when the Fed sells some of its Treasury bonds?

Selling bonds decreases the amount of money that bondholders have in the bank.


What best explains why treasury bonds have an effect on the size of the money supply?

The Federal Reserve Bank can buy and sell these bonds to raise or lower bank deposits.


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

the money supply is increased


Why is the money supply decreased when the fed sells some of its treasury bond?

Selling bonds decreases the amount of money that bondholders have in the bank.


If the federal reserve sells 50000 in Treasury bonds to bank at 6 interest what is the immediate effect on the money supply?

it is decreased by 50000


What of the following best explains why treasury bonds have an effect on the size of the money supply?

The Federal Reserve Bank can buy and sell these bonds to raise or lower bank deposits. APEX


What of the best following best explains why treasury bonds have an effect on the size of the money supply?

The Federal Reserve Bank can buy and sell these bonds to raise or lower bank deposits. APEX


Result in a decrease in the money supply?

The government sells a new batch of Treasury bonds.