Hiking the reserve requirement ratio will have its greatest impact on which of the following measures of money? a) M1 b) M2 c) M3 d) Long-term deposits 1.11 When the People's Bank of China changes the reserve requirement ratio it is in effect conducting its role... a) as a banker and advisor to the government b) as a bank supervisor c) as banker to other banks d) to formulate and implement monetary policy 1.12 Given the policy action by the People's Bank of China, one can conclude that it has taken the to the inflation process. a) Cost-push inflation view b) The Conflict approach c) The Structuralist approach d) Monetarist approach 1.13 Which of the following is true regarding the People's Bank of China's decision in the extract? a) The decision to hike the reserve requirement will affect the speculative motive for holding money. b) The decision to hike the reserve requirement will affect the transactionary motive for holding money. c) The decision to hike the reserve requirement will have the effect of lowering interest rates. d) The decision take by the central bank will reduce the opportunity cost of holding money.