Find out how many years it takes your fruit trees to bear fruit. Thereâs an old proverb that says, âThe best time to plant a tree was 20 years ago.ind out how many years it takes your fruit trees to bear fruit. Thereâs an old proverb that says, âThe best time to plant a tree was 20 years ago.
when the fed buys government bonds, the reserve of the banking system a)increase, so the money supply increases b)increase, so the money supply. This question was answered on Dec 15, 2016. View the Answer. when the fed buys government bonds, the reserve of the banking system. a)increase, so the money supply increases.
To carry out QE central banks create money by buying securities, such as government bonds, from banks, with electronic cash that did not exist before. The new money swells the size of bank reserves in the economy by the quantity of assets purchasedâhence quantitative easing. Like lowering interest rates, QE is supposed to stimulate the economy by encouraging banks to make more loans. The idea is that banks take the new money and buy assets to replace the ones they have sold to the central bank.