Bank of Jamaica's monetary policy objective is to achieve and maintain inflation within the target of 4.0 per cent to 6.0 per cent. Several tools can be used to achieve inflation within the target is through the bank's policy interest rate.

A. Identify TWO (2) types of monetary policy tools that can be used by the Bank of Jamaica

to achieve its monetary policy objectives.

(10 marks)

B. Why is it important to control the supply of money in the economy?

(4 marks)

C. Describe TWO (2) motives that influence the demand for money?

(6 marks)