Question

When the central bank decides it will sell bonds using open market operations: interest rates decrease. the money supply increases. the money supply decreases. the money supply is unaffected.

Answer 1

When the central bank decides it will sell bonds using open market operations b. the money supply decreases.

What is open market operations?

Open market operations  involves the purchase as well as sale of securities which help the Federal Reserve when they want to implement monetary policy.

In this case, When the central bank decides it will sell bonds using open market operations b. the money supply decreases.

Learn more about bonds  at:

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