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.
By adjusting the reserve ratios applied to depository institutions, the Fed can effectively increase or decrease the amount these facilities can lend. For example, if the reserve requirement is 5% and the bank receives a deposit of $500, it can lend out $475 of the deposit as it is only required to hold $25, or 5%.gain, the logic of this process is rather simple. If the Fed buys bonds in the open market, it increases the money supply in the economy by swapping out bonds in exchange for cash to the general public.