Enable text based alternatives for graph display and drawing entry

Try another version of these questions

Question 1

Suppose the Fed buys T-bills.

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

 

Hint


Question 2

Suppose the Fed sells T-bills.

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

 

Hint


Question 3

Consider the following balance sheet for Capital One.

AssetsLiabilities
Reserves1161Deposits2700
Loans1539

Suppose that someone deposited $300 at Capital One.

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

Hint