Jul 9 2009

Where does the money go that the government gets from selling bonds?

When the government sells bonds why does this decrease the money supply? Is it because they are receiving money from securities dealers and keeping that money as reserves? Also, does the government pay interest to the dealers that buy their bonds?

Sphere: Related Content

1 Comments on this post

Trackbacks

  1. Go Cubs Go said:

    It goes into the general fund.It is the interest that decreases the supply.

    July 9th, 2009 at 1:35 pm

LEAVE A COMMENT

Subscribe Form

Subscribe to Blog

Topics

Trucker's Sites

StatPress

Visits today: 28