Problem 2.1:
What is the complete definition of the money supply?
[Solution]
Problem 2.2:
What are the three ways that the Fed can influence the money supply?
[Solution]
Problem 2.3:
How does the Fed affect the money supply through open market operations?
[Solution]
Problem 2.4:
How does the Fed affect the money supply by changing the reserve requirement?
[Solution]
Problem 2.5:
What are the four major safeguards in the US banking system?
[Solution]
