Answer the following questions

(i) Explain how the monetary authorities of a country can use the following techniques to expand or contract the money supply: (a) open market operations (b ) funding (c) minimum reserve requirements. [9] (ii) Explain why the techniques discussed in (i) may fail to give complete control over the stock of money in circulation. [7] [Total 16]Question 3.4 Mortality of a group of lives is assumed to follow Gompertz' law. Calculate My for a 30-year old and a 70-year old, given that /, is 0.003 for a 50 year old and 0.01 for a 60-year old. [4]