Money, Banking, and the Federal Reserve System - End of Chapter Problem a. Show the changes to the T-accounts for the Federal Reserve when the Federal Reserve sells $30 million in U.S. Treasury bills. Assets Liabilities Treasury bills +30 million Monetary base +30 million Treasury bills - 30 million Monetary base-30 million Answer Bank b. Show the changes to the T-accounts for commercial banks when the Federal Reserve sells $30 million in U.S. Treasury bills. Assets Liabilities Answer Bank Treasury bills 30 million Reserves - 30 million Treasury bills 30 million Reserves 30 million c. If the public holds a fixed amount of currency (so that all new loans create an equal amount of checkable bank deposits in the banking system) and the minimum reserve ratio is 5%, by how much will the money supply change in response to this open market operation? Enter your answer in terms of millions of dollars. Total change in money supply: $ million