The required reserve ratio is determined by each individual banks. Group of answer choices True False Question 25 2 pts Some functions of the Federal Reserve Systems are: 1. Control the money supply 2. Supply the economy with paper money 3. Provide check-clearing services 4. Hold depository institution's Reserves Group of answer choices all of them 1 only 1 and 2 The simple quantity theory of money predicts that an increase in M of 5 percent will lead to Group of answer choices an increase in P of 5 percent. an increase in P of more than 5 percent. an increase in P of less than 5 percent. a decrease in P of 5 percent. If the Fed buys government securities, it lowers the interest rate. Group of answer choices True False