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1.5 Which of the following is NOT true should a bank experience a shortage of cash reserves? a) It can change other financial assets into cash. b) It can borrow funds on the interbank market to eliminate the shortage. c) It will only approach the reserve bank if all other banks are experiencing the same liquidity problem. d) The cost of credit is not directly linked to the repurchase agreement rate. 1.6 Which of the following will increase the money supply? a) If the central bank buys shares of common stock in a large bank. b) If the central bank raises the minimum reserve ratio. c) If the central bank sells securities on the open market. d) If the central bank raises the discount rate. 1.7 If the cost of your petrol purchases decreases from R1 500 per month to R 800 over a period of one year due to lower prices and your income decreases from R 18 600 per month to R17 500 per month during that same period, your nominal income has... a) Increased, but your real income has decreased. b) Decreased, but your real income has increased. c) Increased, and your real income has increased. d) Increased, but your real income has remained the same