3. Table below shows the money supply of a country in the year 2019; Items RM(Million) 10 890 Treasury bills 7/7 PRINCIPLES OF ECONOMICS CONFIDENTIAL Current deposits in commercial banks Saving and fixed deposits at commercial banks 36 790 24 650 Negotiable certificates Saving and fixed deposits at merchant banks Coins and notes 12 460 22 920 14 660 Calculate total money supply in the country, (a) M1, M2 and M3. (b) Quasi money. Assume in 2018, the M1 is RM 73,800 million and the M2 is RM 88,400 million, calculate the percentage change in M1 and M2. (c) (a) Define monetary policy. Should the Bank Negara implement expansionary or contractionary monetary policy to control
3. Table below shows the money supply of a country in the year 2019; Items RM(Million) 10 890 Treasury bills 7/7 PRINCIPLES OF ECONOMICS CONFIDENTIAL Current deposits in commercial banks Saving and fixed deposits at commercial banks 36 790 24 650 Negotiable certificates Saving and fixed deposits at merchant banks Coins and notes 12 460 22 920 14 660 Calculate total money supply in the country, (a) M1, M2 and M3. (b) Quasi money. Assume in 2018, the M1 is RM 73,800 million and the M2 is RM 88,400 million, calculate the percentage change in M1 and M2. (c) (a) Define monetary policy. Should the Bank Negara implement expansionary or contractionary monetary policy to control
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 3.5P
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