How much does a loan increase the money supply?

Question

For example, would a $20,000 loan increase the money supply by that amount or would it be more than $20,000 due to a money multiplier (like 1/required reserve ratio)?

Answer 1

an ordinary loan to a person doesn't increase the money supply, because you are using money that is already there that belongs to someone else.

But when a gov't auctions treasury bonds (loans to U.S. Gov't), foreign countries buy these bonds and to do this they must buy US dolaars and this puts more money into the supply