11) The money supply is certain to increase if the Treasury finances expenditures by borrowing from the A) Federal Reserve. B) banking system. C) non-bank financial system. D) general public. 12) Bank reserves increase when the Treasury finances an expenditure through A) taxation. B) borrowing from the non-bank public. C) borrowing from the banking system. D) borrowing from the Fed. 13) If the Treasury finances an expenditure by borrowing from the Fed, the money supply A) and bank reserves fall. B) and bank reserves rise. C) rises while bank reserves remain unchanged. D) remains unchanged as bank reserves rise. 14) A Treasury expenditure financed through borrowing from the Federal Reserve will cause the money supply A) and bank reserves to rise by an equal amount. B) and bank reserves to fall by an equal amount. C) to rise but bank reserves to rise by a greater amount. D) to rise by a greater amount than the rise in bank reserves. 15) Assume a money multiplier of 3. If the Treasury finances a $30 million expenditure by selling securities to the Fed, the effect of this transaction on the money supply is that it will A) remain unchanged. B) rise by $3 million. C) rise by $30 million. D) rise by $90 million. 16) Assume a money multiplier of 3. If the Treasury finances a $30 million expenditure by selling securities to the Fed, the money supply could ultimately A) rise by $3 million. B) rise by $10 million. C) rise by $30 million. D) rise by $90 million. 17) Assume a money multiplier of 2. If the Treasury finances a $10 million expenditure by selling securities to the Fed, bank reserves will A) remain unchanged. B) rise by $5 million. C) rise by $10 million. D) rise by $20 million. 18) If the Treasury prints currency to finance an expenditure, the impact on the money supply is similar to when the Treasury borrows from the A) banking system when it is fully loaned-up. B) banking system when it has excess reserves. C) non-bank public. D) Federal Reserve. 19) The Treasury runs the greatest risk of inflation when expenditures are financed by borrowing from A) foreign nations. B) the Federal Reserve. C) the banking system. D) the non-bank public.