Social Studies, 03.08.2019 09:00, Paris4life

If the federal reserve sells a treasury bond to a bank, what will be the effect on the interest rate the bank charges its customers for a loan? a. the interest rate will decrease since there are fewer available funds for the bank to loan. b. the interest rate will decrease since there are more available funds for the bank loan. c. the interest rate will increase since there are more available funds for the bank to loan d. the interest rate will increase since there are fewer available funds for the bank to loan

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If the federal reserve sells a treasury bond to a bank, what will be the effect on the interest rate...