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If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 4% interest, what is the immediate effect on the money supply?

AIt is decreased by $80,000.
BIt is decreased by $3200.
CIt is increased by $3200.
DIt is increased by $80,000.

Verified Answer :

taskmasters

"It is decreased by $80,000" is the one among the following choices given in the question that would be an immediate effect on the money supply. The correct option among all the options that are given in the question is the first option or option "A". I hope that this is the answer that has actually come to your desired help.

It is decreased by $80,000 Apex

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