/. a. How do commercial banks create money? b. Why central banks cannot perfectly control supply of money? 8. True, false. Explain your answer. a. If the government decides to sell more bonds, demand for bonds will increase in the bond market and price of bonds will increase. b. In the market of money supply of money has a positive slope. c. Demand for Canadian dollars will increase in the foreign exchange markets if foreigners decide to buy more assets in Canada. 9. Can there be a deficit on current account and a deficit on capital account at the same time? Explain. 10. a. List three roles money serves in market economies. b. List three incentives that explain why do people have demand for money