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When the Fed lets its assets mature (Ex. when a treasury bond matures), does the Treasury...

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Economics

When the Fed lets its assets mature (Ex. when a treasury bondmatures), does the Treasury or someone else pay the Fed money?

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4.0 Ratings (544 Votes)
The bonds expire and the Treasury purchases new bonds and collects funds from the Feds banking system Then the Fed decreates the capital if it actually allows to the its balance sheet The net effect is that capital comes from the financial system and    See Answer
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