How do the Federal reserves affect the creation of money by private banks?

Answer 1

the federal reserves can also crowd the private banks out. When the fed lends to the government or industries, it prevents private banks to do it.
During the last 60 years the federal reserves have created less and less money relative to the private banks, they have allowed private banks to loan more by lending -printing less.
The other solution is possible. Often in times of war the federal reserve prints and lends more and hence crowds out private banks.

Answer 2

Some banks finance some of their loans to customers by borrowing in the overnight market every night. Since the interest rate for overnight money is usually less than the loan rate the bank pocket the difference. When the overnight rate goes up. it become less profitable and banks cut back on loans(decrease money supply), when the rate gos down it increase money supply. The fed adds and subtracts from the amount of money available in the overnight markets to control the overnight interest rates.

Answer 3

The people who work for the Federal reserves explain how they want the design to be drawn on he bills. Then the artist who works for the private bank attempts to draw it as closely as possible to the way the federal reserves people explained it.

Answer 4

In a basic economics course, the answer would be "by changing the reserve requirement". In practice, of course, this is seldom done. Practically, they change the rate of creation by altering the much-publicized overnight interbank loan rate.