The U.S. Treasury maintains accounts at commercial banks. What would be the consequences for the money supply

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The U.S. Treasury maintains accounts at commercial banks. What would be the consequences for the money supply if the Treasury shifted funds from one of those banks to the Fed?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Oct 02, 2014 08:12 AM

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The U.S. Treasury maintains accounts at commercial banks. What would be the consequences for the money supply

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The balance sheet for the bank would reflect a decrease in reserves ...View the full answer

Money Banking and Financial Markets

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