Mathematics, 19.08.2021 21:00 amm2795
If a bank buys a Treasury bond from the Federal Reserve, what will be the
effect on the interest rate the bank charges its customers for a loan?
A. The interest rate will decrease since there are more available
funds for the bank to loan.
B. The interest rate will decrease since there are fewer available
funds for the bank to loan.
C. The interest rate will increase since there are more available funds
for the bank to loan
D. The interest rate will increase since there are fewer available funds
for the bank to loan.
Answers: 1
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If a bank buys a Treasury bond from the Federal Reserve, what will be the
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