(a) According to the Minister in the Prime Minister's Office, Mustapa Mohamed and the Finance Minister, Tengku Zafrul Aziz, there is no chance of a consistent and robust recovery with a 6% to 7.5% growth for 2021 following the four-stage plan as introduced by the Prime Minister Tan Sri Dato' Haji Mahiaddin bin Md. Yassin. Weak recovery is only possible even if there are significant policies response.

Source: Modified from, Casadio, P. & Williams, G. (2021) 'Covid-19 exit plan, tipping into recession', The Sun (No.7802), 17 June [online]. Available at: https://www.thesundaily.my/local/covid-19-exit-plan-tipping-into-recession-YH7977771 (Accessed: 18 June 2021).

Propose TWO (2) types of policies that can be used to boost the recovery process. (4 marks)

(c) Given the current account for Country CAP is -RM375 million and capital account is RM240 million with a statistical discrepancy of RM150 million. (i) Distinguish between current account and capital account. (2 marks) (ii) Compute the official reserve balance. (3 marks)