In an open-market sale the Federal Reserve ________ government bonds and the supply of bank reserves ________.

Assuming that one dollar trades for 6 yuan, what is the dollar cost of 30 yuan?

A) $6 B) $30 C) $10 D) $5

Which one of these statements is correct? a. The lower the interest rate, the higher the opportunity cost of holding assets in the form of money. b. The quantity of money supplied is independent of the interest rate

c. The larger the supply of money, the higher the interest rate, all things equal. d. Travelers checks and government bonds are equally liquid assets. e. The demand for money increases whenever the price level decreases.