In buying the bonds CBN pays cash which goes to other commercial banks and eventually into the open market until the CBN decides to sell and the revers becomes the case.
The Feds buy millions of dollars in treasury bonds
The Fed buys millions of dollars in Treasury bonds
The Fed buys millions of dollars in Treasury bonds.
The friend buys millions of dollars in Treasury bonds
the money supply is increased
The Feds buy millions of dollars in treasury bonds
The Fed buys millions of dollars in Treasury bonds
The Fed buys millions of dollars in Treasury bonds.
The friend buys millions of dollars in Treasury bonds
the money supply is increased
The discount rate on overnight loans is lowered.
The Federal Reserve Bank can buy and sell Treasury bonds to raise or lower bank deposits
Selling bonds decreases the amount of money that bondholders have in the bank.
When it buy bonds- that money goes into the economy hence increasing the money supply
They print more bills in the Treasury.
If bonds are sold then the supply of money decreases.
The government sells a new batch of Treasury bonds.