Daube Company's operations for the month of July are summarized as follows: A. Provided $9,800 of services on account. B. Received $3,900 cash from customers for services provided in July. C. Received $1,400 cash for services to be provided in August. D. Received $4,500 cash from customers on account for services provided in June. E. Paid June's warehouse rental bill on account in the amount of $1,100. F. Received July's warehouse rental bill of $1,100; set it aside to be recorded at a later date.

Explain whether each of the following events increases or decreases the money supply. a. the fed buys bonds in open-market operations. b. the fed reduces the reserve requirement. c. the fed increases the interest rate it pays on reserves. d. citibank repays a loan it had previously taken from the fed. e. after a rash of pickpocketing, people decide to hold less currency. f. fearful of bank runs, bankers decide to hold more excess reserves. g. the fomc increases its target for the federal funds rate.