7. (a) A bank needs to keep a balance between its twin objectives of liquidity and profitability.

Explain the underlined terms. How does the bank reconcile these twin objectives? (20 marks)

(b) The Central Bank (now called the Central Bank and Financial Services Authority of Ireland)

continues to play a very important economic role in the Irish economy.

Explain the role it plays in the Irish economy. (30 marks)

(c) The euro is now well established as a currency in Ireland. Discuss the economic effects which

the introduction of the euro has had on:

Irish consumers;

Irish exporters and importers. (25 marks)

[75marks]

8. (a) The last census of population (in 2002) showed that the Irish population continues to grow and now

exceeds 3.9 million.

Discuss the economic consequences of an increasing population. (25 marks)

(b) Discuss the main economic benefits of the inflow of labour into the Irish Economy. (20 marks)

(c) (i) One of the government's economic aims is to achieve balanced regional development.

Outline FOUR possible government policies to achieve this aim.

(ii) "Policies to achieve balanced regional development may make it more difficult for the

government to achieve other economic aims". Explain this statement, using examples to support

your answer.