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krok68 [10]
3 years ago
6

A commercial bank buys a $50,000 government security from a securities dealer. the bank pays the dealer by increasing the dealer

's checkable deposit balance by $50,000. the money supply has:
Business
1 answer:
stealth61 [152]3 years ago
3 0

Answer:

Increased by $50,000

Explanation:

When the Federal Reserve or a any private bank buys government securities from another private company or investor, they "create" money in the same way as a loan creates money.

Therefore, when the commercial bank bought government securities worth $50,000 from a private securities dealer, the money supply increased by $50,000.

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If there is a federal budget surplus, then government revenues are greater than its expenditures.
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The statement above is true
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Uptown Promotions has three divisions. As part of the planning process, the CFO requested that each division submit its capital
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d. soft rationing

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Soft rationing -

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