If the Federal Reserve sale 70000 in and treasury bonds to a bank at 9 interest what is the media affect on the money supply?

When the Federal Reserve sells $70,000 in treasury bonds to a bank at a 9% interest rate, it effectively reduces the money supply in the economy. The bank pays for these bonds, which decreases its reserves and thus its capacity to lend. As a result, the overall money supply contracts, leading to tighter financial conditions. This action can help combat inflation but may also slow economic growth if done excessively.