21. All else equal, the money supply should decrease when a. banks withdraw currency from the Fed. b. the Fed makes loans at the discount window. c. the Fed sells securities on the open market. d. the Fed buys securities on the open market. e. None of the above 22. A fractional reserve banking system might be in trouble if a. one depositor wanted his (her) money returned. b. one borrowing customer paid off the loan. c. all borrowing customers paid off their loans. d. all deposit customers wanted to withdraw their money. e. None of the above. 23. The Federal Reserve operates in the following areas in our economy, according to the video "The Federal Reserve and You -Chapter 1" a. payments b. supervision and regulation c. monetary policy d. (a) and (c) only e. all (a), (b), and (c) 24. An agency problem is prone to exist in public corporations because: a. of the size of the operations. b. operations are frequently spread over various geographic locations. c. management is frequently separated from ownership d. managers tend to be long-term employees. e. some owners are also company employees. 25. Financial markets are important because they a. allow individuals to transfer purchasing power over time. b. provide for the efficient transfer funds to businesses. C. facilitate exchanges between the providers and users of capital. d. all of the above