The questions aren’t the same for everyone, it always changes so to be safe don’t just study 2019 questions, but the star test should be easy
<span>-They help to prevent bank runs by reassuring the public that banks will not make too many loans and run out of cash.
-They help to facilitate transfers of funds between banks when a customer from one bank writes a check to a customer of another.
-They help to control the money supply.
Hope I helped </span>
If the money supply increases and nominal GDP remains the same, then A. price level increases.
<h3>What is Money Supply?</h3>
This refers to the total amount of money that is in circulation in a country that usually increases spending.
Hence, an open market sale by the federal reserve will increase the interest rates because it would increase investment spending because an OMO sale decreases interest rates which make getting loans easier.
M= Money supply
V= Velocity
P- Price level
Y= nominal GDP
Hence, with the increase in the money supply, then there would be an increase in the price supply.
Read more about money supply here:
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Answer: how can i tell if Japanese is correct
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