Actions affect the money supply

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Reference no: EM131174277

How will the following actions affect the money supply?

A) A reduction in the discount rate

B) An increase in the reserve requirements

C) Purchase by the Fed of $100 million in U.S. securities from a commercial bank

D) Sale by the U.S. Treasury of $100 million in newly issued bonds to a commercial bank

E) An increase in the discount rate

F) Sale by the Fed of $200 million in U.S. securities to a private investor

G) A shift of funds from interest-earning checking deposits to money market mutual funds

H) A reduction in the holdings of currency by the general public because debit cards have become more popular and widely accepted

I) The shift of funds from money market mutual funds into stock and bond mutual funds because the fees to invest in the latter have declined.

Reference no: EM131174277

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