Problem
1. Identify the five factors that determine the money supply. For each factor, explain which player(s) in the money supply process-the Federal Reserve, depositors, and banks- control or influence it and how and why it affects the money supply.
2. Use the following information to determine the Fed's balance sheet and calculate the Fed's monetary liabilities: Currency in circulation = $750 billion Reserves of the banking system = $850 billion Government securities held by the Fed = $450 billion Discount loans = $1,150 billion.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.