a) High levels of inflation inhibit economic growth and cause the Kenya Shilling to lose value compared to international currencies, thereby discouraging the purchase of Kenyan goods and services. Assume that you are a member of Monetary Policy Committee, explain your recommendations on how this can be remedied. [4 Marks] b) Explain the following economic concepts [1 Mark] i. Currency Depreciation [2 Marks] ii. Deficit monetization [2 Marks] c) Financial intermediaries play a key role in economic development of any economy. Using an example of a financial intermediary in Kenya, explain any two roles the selected financial intermediaries play.[4 Marks] d) "To facilitate commercial banks' liquidity management in Kenya, The Central Bank of Kenya (CBK) requires commercial banks to maintain their Cash Reserve Ratio based on a daily average level". Explain the relevance of this statement and relate it to an objective of monetary policy. [3 Marks] e) Baumol Inventory approach to transactional demand for Money tries to describe money demand in terms of a trade-off. Explain any three assumptions of this model. [6 Marks]