Select the answer/answers that is/are correct. (this question worth 2 points).

Group of answer choices

1) If Fed increases the Reserve Requirement the money supply will decrease.

2) Fisher equation shows that if the expected inflation increases the nominal rate of interest will also increase.

3) If inflation rate is higher than the target rate of inflation then the Fed is likely to increase the interest rates.

4) If the bank and the borrower don't have access to the same information about the borrower's credit quality then there is an Information Asymmetry between the bank and the borrower.

5) If Fed wants to increase the money supply it purchases government securities from the market.