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money supply: Explain. * *Question 5 (Quiz Question) a) Explain why Australia's currency is suitable to use as a medium of exchange. (3 marks) b) How does the existence of financial intermediaries affect liquidity in the financial market? (2 marks) c) What role does the Reserve Bank of Australia (RBA) have in the economy? (3 marks) d) Why does an open market purchase of government securities by the RBA increase bank reserves? Why does an open market sale of government securities by the RBA decrease bank reserves? (2 marks) Question 6