Refer to the given balance sheets and assume the reserve ratio is 25 percent. Suppose the Federal Reserve Banks buy $2 in securities from the public, which deposits this amount into checking accounts.As a result of these transactions, the supply of money will:- be unaffected, but the money-creating potential of the commercial banking system will increase by $6.- directly decrease by $2 and the money-creating potential of the commercial banking system will be unaffected.- directly increase by $8 and the money-creating potential of the commercial banking system will increase by an additional $32.- directly increase by $2 and the money-creating potential of the commercial banking system will increase by an additional $6.directly increase by $2 and the money-creating potential of the commercial banking system will increase by an additional $6.
