Exhibit: Fed Sells Bonds Scenario 2: Fed sells bonds to Henry Hyde Consider a banking system in which the reserve requirement is 10%, banks try not to hold excess reserves, consumers and firms hold money only in the form of checking account balances, and all loan proceeds are spent. Suppose initially all banks in the System are loaned up. Now. suppose that the Fed sells a $50,000 bond to Henry Hyde, who pays for the bond by writing a check drawn against Jekyll Bank. (Exhibit: Fed Sells Bonds) Once the full impact of the Fed's open market sale works its way through the banking system, what is the maximum change on the money supply as a result of these two events? O Money supply rises by $5,000. O Money supply rises by $500,000. O Money supply falls by $50,000. O Money supply falls by $500,000. Question 22 1 pts In the federal penitentiary at Lompoc. California, inmates used packages of mackerel to buy items such as haircuts at the prison barber shop and laundry services. What function do these packages of mackerel serve? They functioned as money. O They served as a corruption deterrent. O They enabled prison officers to monitor illegal money flows. O They forced prisoners to engage in barter