• HOW IS INTEREST ON RESERVE USED BY THE FED TO SUPPLY MONEY IN THE BANKING SYSTEM?

• WHAT HAPPENS TO THE FOLLOWING IF THE FED BUYS T-BILLS FROM MEMBER BANKS: INTEREST ON T-BILLS? BANK EXCESS RESERVES? LOANS? INTEREST RATES ON BANK LOANS? BORROWING SPENDING? WOULD THE FED BUY T-BILLS TO REIN IN DEMAND OR TO STIMULATE THE ECONOMY?

• REPEAT LAST QUESTION - IF THE FED SELLS T-BILL TO MEMBER BANKS?