(Solved): 7. The differences between the Federal Reserve and the Treasury Fill in the blanks in the followin ...

7. The differences between the Federal Reserve and the Treasury Fill in the blanks in the following table to indicate differences between the U.S. Treasury and the Federal Reserve. Institution I Institution II finances budget deficits. 1. Sells newly issued government bonds. 2. It creates money out of thin air. It control the money supply. 3. It When it issues government bonds and spends the proceeds, the 4. When it money supply 1. 2. 3. loans funds to the banking system. government bonds, the money supply control the money supply.