Good day, can someone help me in answering the following questions? I am having a little bit of trouble answering them. If it's okay, can you also add an explanation so I can review the answers. Thank you so much!

Question 1

The transaction demand for money depends on

Select the correct response

a. the price level

b. the interest rates

c. the money supply

d. bond rates

Question 2

Interest rate and the price of bonds are

Select the correct response

a. positively related

b. sometimes positively related and other times negatively related, depending on the bond payments

c. negatively related

d. not related

Question 3.

Money is

Select the correct response

a. any items used in barter

b. an illiquid asset

c. valuable because it is backed by gold

d. none of the above

Question 4

Which of the following events will lead to a decrease in the equilibrium interest rate?

Select the correct response

a. a decrease in the required reserve ratio

b. an increase in the level of nominal aggregate output

c. a sale of government securities by the BSP

d. an increase in the price level

Question 5

In a simplified banking system subject to a 25% required reserve ratio, a Php 100,000 open-market purchase by the BSP would cause the money supply to

Select the correct response

a. decrease by Php 400,000

b. increase by Php 400,000

c. increase by Php 100,000

d. decrease by Php 100,000

Question 6

When the BSP raised the required reserved ratio, then the

Select the correct response

a. ability of banks to make loans is enhanced

b. interest rate that banks pay to the BSP to borrow money is increased

c. interest rate that banks pay to other banks to borrow money is increased

d. ability of banks to make loans is unaffected

e. ability of banks to make loans is restricted