1. Most people don't spend much time wondering what money is. With example discuss whether money is good or bad.
2. Explain the money creation process.
3. Who determines the nation's money supply? Explain how the money supply could be expanded or reduced in an economy in which all money is in the form of currency.
4. What is the effect on the monetary base of an open-market purchase of Fijian Treasury securities? What is the effect on the money supply?
5. On a money market graph show the effect if public purchases bond from RBF.
6. Assume that the quantity theory of money holds and that velocity is constant at 5. Output is fixed at its full-employment value of 10,000, and the price level is 2. Determine Money Supply.