1) B) If people hold all money as current account deposits and banks maintain 100 percent reserves, what is the quantity of money ?

C) If people hold equal amounts of currency and current account deposits and banks maintain 100 percent reserves, what is the quantity of money ?

D) If people hold all money as current account deposits and banks maintain a reserve ratio of 10 percent. What is the quantity of money ?

E) If people hold equal amounts of currency and current account deposits and banks maintain a reserve ratio of 10 percent, what is the quantity of money ?

2. How would the following transactions affect Malaysian exports, imports and net exports ?

A) A Malaysian professor spends the summer touring museums in Europe.

B) Students in Kuala Lumpur flock to see the latest movie from Hollywood U.S.A.

C) Your uncle buys a new Toyota.

D) The student bookstore at National University of Singapore sells Royal Selangor Pewter.

E) A Thai citizen shops at a store in Kota Bharu.

3. Would each of the following transactions be included in net exports or net capital outflow ? Be sure to say whether it would represent an increase or a decrease in that variable.

A) A Malaysian buys a Sony TV

B) A Malaysian buys a share of Sony stock.

C) The Japan pension fund buys a bond from the Malaysian Treasury

D) A Japanese buys some durians from a Malaysian farmer.

4. Would each of the following groups be happy or unhappy if ringgit appreciated ? Explain.

A) Hong Kong pension funds holding Malaysian government bonds

B) Malaysian manufacturing industries

C) Australian tourists planning a trip to Malaysia

D) A Malaysian firm trying to purchase property overseas