What happens to the money supply when the Fed sells government ...

[drink]

What happens to the money supply when the Fed sells government bonds?
 
  A) The money supply tends to rise.
  B) The money supply tends to fall.
  C) Nothing.
  D) It's impossible to determine, because bonds aren't money.

Question 2

Refer to the scenario above. If the rules of the gamble are changed such that in the case of heads, the individual wins 50, and in the case of tails, the individual loses 100, the expected value of the gamble changes to:
 
  A) 25.
  B) -25.
  C) 50.
  D) -50.

[braelync]

Answer to Question 1

B

Answer to Question 2

B