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.
When Fed buys, it raises demand and price of bonds, which in turn lowers effective interest rate on bonds. The higher price and lower interest rates make selling bonds to Fed attractive. ii. When Fed sells, the bond supply increases and bond prices fall, which raises the effective interest rate yield on bonds.