Try another version of these questions

Suppose the Fed decreases discount rate.

As a result of this policy, what will happen to the money supply?

 

Hint


Suppose the Fed sells T-bills.

As a result of this policy, what will happen to the money supply?

 

Hint


Consider the following balance sheet for US Bank.

AssetsLiabilities
Reserves945Deposits2100
Loans1155

Suppose that someone deposited $300 at US Bank.

Given this data, what is the maximum amount by which the money supply will increase?

Hint