Ask Question
22 December, 17:20

Explain how buying and selling securities affects the flow money.

+5
Answers (1)
  1. 22 December, 18:43
    0
    If the Fed buys bonds in the open market, it increases the money supply in the economy by swapping out bonds in exchange for cash to the general public. Conversely, if the Fed sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Explain how buying and selling securities affects the flow money. ...” in 📘 Geography if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers