Answer:
54000
Step-by-step explanation:
Amount sold by federal reserve in treasury bonds to a bank = 50,000
Interest on treasury bonds = [tex]8\%[/tex]
So, interest charged on treasury bonds = [tex]8\%\times 50000=\frac{8}{100}\times 50000=8\times 500=4000[/tex]
Immediate effect on money supply :
The immediate effect is that amount of money in bank increases by [tex]8\%[/tex]
Amount of money in bank = Amount sold by federal reserve in treasury bonds to a bank + Interest on treasury bonds = 50000 + 4000 = 54000
