Which of the following is a valid criticism of the simple money multiplier? Individuals may put their money in a bank and not hold it in currency. The money multiplier does not account for the fact that the Fed can change the required reserve ratio. The simple money multiplier does not work if the Fed uses a discount loan instead of open market operations. Individuals may hold currency and not deposit their money in a bank. QUESTION 5 Where do we find currency on the Fed's balance sheet? O Currency is not on the Fed's balance sheet O Assets Liabilities It depends on what type of currency it is QUESTION 6 If the Fed makes an open market purchase, how will that affect the Fed's balance sheet? Assets will increase. Liabilities will decrease. Securities will decrease. Reserves will decrease. O Loans will increase. Reserves will increase. Securities will increase. Reserves will increase. Which of the following is a valid criticism of the simple money multiplier? Individuals may put their money in a bank and not hold it in currency. The money multiplier does not account for the fact that the Fed can change the required reserve ratio. The simple money multiplier does not work if the Fed uses a discount loan instead of open market operations. Individuals may hold currency and not deposit their money in a bank. QUESTION 5 Where do we find currency on the Fed's balance sheet? O Currency is not on the Fed's balance sheet O Assets Liabilities It depends on what type of currency it is QUESTION 6 If the Fed makes an open market purchase, how will that affect the Fed's balance sheet? Assets will increase. Liabilities will decrease. Securities will decrease. Reserves will decrease. O Loans will increase. Reserves will increase. Securities will increase. Reserves will increase