Question 1 - You deposit $100 in your bank. The bank is required to hold 90% of all such deposits. Walk me through the process of your bank "creating" money. Go through at least three transactions - including the numbers. Show your work and explain.

Question 5 - Again, the United States is in a hypothetical recession. Except this time the Federal Reserve does have the ability to create money. Contrast this with your response in question 1. And again, integrate the Equation of Exchange in your response.

These two questions tie in together. Please help me out! I am so lost, especially with question 5. Thank you in advance!!