The Fed buys $100 million of bonds from the publicand also lowers the required reserve ratio. What willhappen to the money supply?

suppose the reserve requirement is 10 percent and the balance sheet of the peoples national bank looks like the accompanying example.ASSETSvault cash - $20,000deposits at fed - 30,000securities - 45,000loans - 120,000LIABILITIESchecking deposits - $200,000net worth - 15,000answer the following:A. what are the required reserves of people national bank? does the bank have any excess reserves?B. what is the maximum loan that the bank could extend?C. indicate how the banks balance sheet would be altered if it extended this loan.D. suppose that the required reserves were 20 percent. if this were the case, would the bank be in a position to extend any additional loans? explain

If the fed wants to increase money supply it can _ interest rate

Which of the following will not increase the money supply? 1, The RBA purchasing bonds from private banks. 2, The federal government spending its currency. 3, The RBA purchasing bonds from non-bank private sector. 4, Banks lending to their customers. 5, Government bonds owned by private households reacjing maturity.