1. Suppose you find $10 000 under the floorboards in your house and deposit it in your bank. If the bank's required reserve ratio is 6 per cent, what is the amount of highly liquid assets - like currency and CGS - which the bank needs to hold in relation to this deposit? What can be done with the remainder?

2. Suppose someone deposits their pay cheque from Coles drawn on another bank into their own bank. Explain the impact on the overall aggregate money supply in the economy.

9 Suppose a bond pays an annual coupon interest of $3000. Compute the yield per year that a bondholder will earn if the bond is purchased at a market value of $120 000, $100 000 and $75 000. The calculations lead you to what conclusion?