8. 10. 11. 12. People use money as a medium of exchange when they (a) use money to resolve the inconveniences arising from the need of double coincidence of wants. (b) hold money to transfer purchasing power over time. (c) use money to measure the size of debts. (d) save for retirement. . Renminbi is an example of (a (b (c (d cryptocurrency commodity currency gold-standard currency. at curreny. ) l l J In terms of the impact on money supply, an increase in the minimum reserve requirement is similar to a a decrease in excess reserve. b l l c the sale of overnment bonds by the central bank in the open-market operation. 3 l ( ( a decrease in the holding of cash by the public. (d an increase in the nominal GDP. Suppose that a bank currently has $400 billion in reserves, the reserve requirement is 8%, and excess reserves amount to $5 billion (excess reserves are part of reserves). What is the level of deposits of the bank? (a) $5,000 billion (b) $4,937.5 billion (c) $5,062.51 billion (d) $4,995 billion When the central bank of a country decreases the money supply through open-market operations, it a sells government bonds to the public. ( l (b) borrows from the public. (c) burns money. ) (d Both (a) and (b) are correct