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26 February, 07:00

When citibank repays a loan it had previously taken from the fed, it the money supply?

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  1. 26 February, 08:18
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    The money supply decreases when Citi Bank repays a loan they had previously taken from the Fed. The money supply within Citi Bank decreases because they no longer have the money as they have paid it back to the Fed. The Fed's supply of money then increases.
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