22. In order to safeguard the proper functioning of our monethry system, in 1913 Congress dreatedt Treasury Department b. FDIC c. National Bank Act d. future funds rate e. Federal Reserve System 23. Which of the following is the most effective tool used by the Fed? Converting state-chartered banks to nationally-chartered banks b. Shifting deposits from one District Fed to another c. Producing currency to increase the money supply d. Using the federal funds market e. Open market operations 24. A bank creates money whent gets new demand deposits that the depositor formerly held as cash b. has a loan paid off, which creates excess reserves for the bank c. makes a loan from its excess reserves d. holds back excess reserves because of an increase in the legal reserve requirement e. gets more excess reserves because of a decrease in the legal reserve requirement 25. The sequence from most liquid to least liquid forms of money would be a. M1, M2, M3 b. M2, M3, M1 c. M3, M2, M1 d. M3, M1, M2 e. M1, M3, M2