What Can the Feddo to Reduce Money Supply?

Sell bonds to the public, raise the discount rate that it charges banks

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Why is the money supply perfectly inelastic?

It seems to context of your question is the IS-LM model, where your question is specifically about the LM. In the Hicks (IS-LM) view of the money market, the nominal money supply is fixed, as it depends directly on the amount of money printed by the government (although now we tend to think in terms of the central bank) and not on the actions of the other agents of the economy. As such, it is a defining assumption and exogenous to the dynamic of the model. Now, notice that the real money supply could change when prices move. In the IS-LM context, this could be due to an increase in government spending financed via taxation, where a multiplier higher than one leads to an expansion of aggregate demand and, in the short-run at least, a boom and an increase in the price (assuming a positive sloped aggregate supply).Now, moving away from such a simplistic assumption, the concept of the money supply is more complex than that. The money supply is usually defined as:$$M_s=phi B$$where $phi$ is the money multiplier and $B$ is the monetary base. A government/central bank can directly alter the the latter by printing money or buying/selling short term debt. It can also affect the multiplier by altering banking regulation like maximum reserve ratios. But, importantly it is the action of bankers and the agents in the economy that determine the value of the multiplier (e.g. via lower lending or more demand for currency, respectively). So, in the end, the money supply does not depend only of the government or central bank agency but of the rest of the agents too.

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Float (money supply)

In economics, float is duplicate money present in the banking system during the time between a deposit being made in the recipient's account and the money being deducted from the sender's account. It can be used as investable asset, but makes up the smallest part of the money supply. Float affects the amount of currency available to trade and countries can manipulate the worth of their currency by restricting or expanding the amount of float available to trade.

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True or false? Credit cars are part of the M1 money supply?

Credit cars are part of the M1 money supply. Credit trucks are not. Which one of the following is not part of our money supply? D. Dollar bills The main purpose of federal deposit insurance is to B. put savings and loan associations on an equal competitive footing with commercial banks Which of the following is NOT function of the FED? A. setting the discount rate

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What is Obama going to do when inflation skyrockets because he is increasing the money supply?

He will keep the printing presses going and blame it on Bush

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How does a cash deposit change the M1 measure of the money supply?

It's best to always check the exact definitions for M questions, because they can vary a little between countries. I will use the US Federal Reserve's here, viz. "M1 is defined as the sum of currency held by the public and transaction deposits at depository institutions (which are financial institutions that obtain their funds mainly through deposits from the public, such as commercial banks, savings and loan associations, savings banks, and credit unions). "The reason M1 does not increase is essentially semantic. Before the deposit occurs, M1 is the sum of currency held outside the banking system ("held by the public") and deposits at banks etc. Notice that currency held by the banks is not included in the M1 definition. When the deposit occurs, the accompanying double entry book keeping is [debit cash, credit customer deposit]. Now the cash is held by the bank, so not included in M1, but the customer deposit that was created by the cash deposit is - so there's no change. This is the best way to handle this btw., since once the cash is deposited at a bank, it's no longer playing an active role in the money supply. As far as the potential impact on the reserve requirement, and multiplier effect. As you are quite rightly suggesting, the question is trying to avoid that by saying "immediate". However, if you are in the USA, reserves no longer control the money supply the way the text book tries to describe, so there would not be expected to be a long term impact either. (reserve requirements only cover a fraction of bank deposits, and capital requirements actually dominate in terms of regulatory impact.)