If the federal reserve sells $40,000 in treasury bonds to a bank at 5% interest, what is the immediate effect on the money supply?
a. it is decreased by $40,000.
b. it is increased by $42,000.
c. it is decreased by $42,000.
d. it is increased by $40,000.

If a seller prepaid the taxes of $4,400 and the closing is set for may 19, using the 12 month/30 day method what will the buyer owe the seller as prorated taxes?

How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.

He interest rate effect is the change in real gdp caused by the federal reserve adjusting target interest rates. is the change in consumer and investment spending due to changes in interest rates resulting from changes in the aggregate price level. is the change in exports and imports, resulting from changes in the interest rate caused by changes in the aggregate price level. is the change in investment spending and government purchases caused by changes in money demand. is the change in interest rates, caused by changes to government purchases.