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 summarize thus far: 1  The Fed buys bonds from banks. 2  Bank reserves and the monetary base increase. 3  Banks don't want money sitting in their vaults, earning zero return, so they attempt to loan out the money.  To attract borrowers, banks lower the interest rates that they charge.