Meredith company gathered the following reconciling information in preparing its may bank reconciliation:

cash balance per books, 5/31 $2,500
deposits in transit 150
notes receivable and interest collected by bank 650
bank charge for check printing 40
outstanding checks 1,800
nsf check 140
the adjusted cash balance per books on may 31 is

1. $1,320.
2. $2,970.
3. $5,280.
4. $3,120.

Explain whether each of the following events increases or decreases the money supply. a. the fed buys bonds in open-market operations. b. the fed reduces the reserve requirement. c. the fed increases the interest rate it pays on reserves. d. citibank repays a loan it had previously taken from the fed. e. after a rash of pickpocketing, people decide to hold less currency. f. fearful of bank runs, bankers decide to hold more excess reserves. g. the fomc increases its target for the federal funds rate.