(a) The following is the balance sheet of Zuhal Bank:

Assets (RM million) Liability ( RM million )

Cash reserves Current deposits

10 000. 50 000

loans

40 000

total Total

50 000. 50 000

(i) If all the excess reserves lent, calculate the value of statutory reserve ratio.

(ii) Calculate the total of loan amount after three stages of the credit creation

process.

(b) State your argument on the action of government in reducing statutory reserve ratio during inflation.

(c) Given the scenario below:

With reference to the above situation, explainFOUR (4)non-income determinants that can influence consumption during the economic problem illustrated in the statement. Explain your answer with the aid of AD-AS diagram.

QUESTION 4 (a) The following is the balance sheet of Zuhal Bank: Asset (RM million) Liability (RM million) Cash reserves 10 000 Current deposit 50 000 Loans 40 000 Total 50 000 Total 50 000 (i) If all the excess reserves lent, calculate the value of statutory reserve ratio. (3 marks) (ii) Calculate the total of loan amount after three stages of the credit creation process. (6 marks) (b) State your argument on the action of government in reducing statutory reserve ratio during ination. (6 marks) (c) Given the scenario below