Money Supply question insight, question, please, excess

economicz

Can anyone please shed some insight into this question:
Money supply is fixed and is determined by the Fed. Isn’t this contradictory to the money multiplier effect, whereby the banks’ excess reserves can cause the money supply to grow?
Thanks for any input.

prashantsahni

Thanks Dreary!

dotamasta

Since fed also sets reserve requirements, it still holds that the supply is fixed by the Fed. Reality is that there’s a band of the actual supply due to the multiplier effect and people’s propensity to consume or save.

Chuckrox8

That’s correct, but the ultimate money supply is fixed.
Checkyour understanding: what if the treasury department sells $10 billion tbills, wouldn’t that change the money supply? So, is it always the Fed’s action that does?