The granting of a $10,000 loan and the purchase of a $10,000 government bond from a securities dealer by a
commercial bank would have the same effect on the money supply.

Name: The granting of a $10,000 loan and the purchase of a $10,000 government bond from a securities dealer by a commercial bank would have the same effect on the money supply.
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Both actions would increase the bank's assets by $10,000 and its liabilities by $10,000, resulting in no net effect on the money supply.

The Granting of a $10,000 Loan and the Purchase of a $10,000