Indicate the answer choice that best completes the statement or answers the question. _ l. The indirect method central banks use to affect exchange rate is: a. to buy and sell currency. b. to impose tariffs and quotas. c. to change the domestic money supply. d. to increase scal spending. e. to reduce transfer payments. 2. Identify the correct statement from the following. a. The Formal denition of money includes only coin and currency of an economy. b. Checking account deposits are a part of a country's money supply. c. The equilibrium interest rate derived in the money market is equal to the federal funds rate. d. The rate of interest that banks charge on their loans and pay on their deposits are equal. 6. When the equilibrium interest rate determined in the money market increases, it implies all the interest rates in the economy must rise. _ 3. Any change in government spending, transfer payments, or taxes, by either federal, state or local governments represents a: a. monetary policy change. b. scal policy change. c. trade policy change. (1. structural adjustment program. 6. socioeconomic change. __ 4. Suppose Bank 1 receives a deposit of $500. The bank can lend out is ll] percent. a. $50 b. $500 0. $100 d. $450 e. $400 alter meeting the reserve requirement