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Q: The following are all problems with measuring the money supply?
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When the federal reserve puts money in a banking system?

When there are liquidity problems and/or when they want to increase money supply.


What were the problems of Carthaginians when it fought far from home?

Supply of food, weapons, money and reinforcements.


Why has measuring the money supply become more difficult in recent year?

The U.S. Congress continuing the process of decreasing the independence of the Fed.


Why did the US supply soviets with equipment following the German invasion?

One reason really... $$$$$ MONEY $$$$$


Which of the following can the Fed accomplish by raising or lowering the required reserve ratio?

Increase or decrease the money supply


Is deflation of the money supply a good thing?

Deflation is a situation where the amount of the money supply is in a state of shrinking. It's a good thing if inflation is running high and out of control. In a normal economy, deflation means less money in circulation which causes the economy to suffer. Money is scarce and prices may be too high in relation to the money supply. This causes economic problems.


Why did farmers think that an increased money supply would help solve their economic problems?

Farmers have a cash flow problem. They only have money after harvest. They felt that an increased money supply would allow them a chance to get a loan that they could pay back after harvest.


Which of the following is most likely to result in an increase in the money supply?

The Fed buys millions of dollars in Treasury bonds.


Which of the following describes the most likely effect of the sale of a new batch of Treasury bonds?

A decrease in the money supply


What are the following actions is most likely to result in an increase in the money supply (Apex?

The friend buys millions of dollars in Treasury bonds


Which of the following describes the most likely effect of the Fed lowering the discpunt rate on overnight loans?

An increase in the money supply apex:D


How does raising the discount rate affect the money supply?

Decreases the money supply