$12.$ Problems and Applications Q$2$

When the Fed sells bonds in open$-$market operations, it the money supply.

If the Fed reduces the reserve requirement, the money suppl$).,.$

$13.$ Problems and Applications Q$3$

Your uncle repays a $\backslash (\backslash$$ $200\backslash )$ loan from Tenth National Bank $($TNB$)$ by writing a $\backslash (\backslash$$ $200\backslash )$ check from his TNB checking account. Assume these funds are the only loans and deposits available for your uncle and the bank.

Complete the following T$-$accounts for your uncle and TNB before your uncle repays the loan.

Your Uncle

Complete the following T$-$accounts for your uncle and TNB after your uncle repays the loan.

Your Uncle

True or False: Your uncle's wealth has increased.

True

False