Suppose that the South African Reserve Bank wants to lower general interest rates. An appropriate policy for the South African Reserve Bank would be to: a) raise the interest rate on certain government bonds. b) reduce the discount rate. c) reduce the level of excess reserves that banks hold. d) increase the required reserve ratio. Question 8 (4 marks) It is correct to say that: a) if there is too much money demand, the central bank reduces money supply by selling bonds on the open market. b) by fixing the interest rate, a central banks loses control over money supply. c) if there is too little money demand, the central bank reduces money supply by selling bonds on the open market. d) central banks mainly control money supply by fixing the monetary base