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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

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

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

the money supply is increased


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


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 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


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.


What best explains why the money supply 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 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


Which best explains why treasury bonds have an effect on the size of the money sup?

Treasury bonds influence the size of the money supply primarily through their impact on interest rates and the banking system's reserve levels. When the government issues bonds, it absorbs cash from the economy, reducing the available money supply. Conversely, when the Federal Reserve buys bonds in the open market, it injects liquidity into the financial system, increasing the money supply. Thus, the buying and selling of treasury bonds directly affect monetary policy and overall economic liquidity.


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