Determine whether each of the following statement is true, false, or true in some cases but not others. Give reasons to support your answers.

1 Money supply in the U.S. will increase if the Fed conducts an open market operation. 2 Small businesses are less likely to sell stocks or bonds to the market because they involve higher borrowing costs. 3 According to the quantity theory of money, market interest rate decreases if the velocity of money (V) drops. 4 If the interest rate paid on saving account increases faster than the interest paid on checking account, then, the relative growth rates of M2 will increase. 5 Because they are not subject to the government regulation and supervision, shadow bank- ing does more harm than good for the financial system