How would each of the following events affect the U.S. money supply? Banks decide to hold more excess reserves. (Excess reserves are reserves over and above what banks are legally required to hold against deposits.) This would cause in the money supply. People withdraw cash from their bank accounts for Christmas shopping. This would cause in the money supply. The Federal Reserve sells gold to the public. This would cause in the money supply. The Federal Reserve reduces the interest rate it pays on deposits of depository institutions held at the Fed This would cause in the money supply. A financial crisis leads people to sell many of their stocks and deposit the proceeds in bank accounts, which are federally insured. This would cause in the money supply The Federal government sells $20 billion of new government bonds to the Federal Reserve. The proceeds of the sale are used to pay government employees. This would cause in the money supply. The Federal Reserve sells some of its government securities in Tokyo for yen. This would cause the money supply