PART B (60 MARKS) QUESTION 1 The following table contains the monetary information for a country. Answer the following questions. Items $ (Million) Paper money 8 000 Bank Negara certificates 5 000 Fixed and savings deposits in commercial bank 5 500 Fixed and savings deposits in other financial institutions 3 000 Current deposits in commercial banks 7 000 Fiat money 13 000 Negotiable certificates in merchant bank 2 500 a) Calculate the amount of money supply M1. (2 marks) b) Determine the value of money supply M2 and M3. (6 marks) C) Calculate the amount of near money and broad near money. (4 marks) d) List three (3) motives of holding money according to Keynes. (3 marks)QUESTION 2 Table below shows the balance sheet of bank ABBA. Answer the following question. Assets ($) Liabilities ($) Cash reserve 20 000 Current deposits 200 000 Loan 180 000 Total 200 000 200 000 a) Define cash reserve ratio and calculate its value. (4 marks) b) Determine the value of money multiplier. (2 marks) C) Calculate the amount of total money supply, total reserve and total credit created. (6 marks) d) List any three (3) tools of monetary policy besides reserve requirement. (3 marks)QUESTION 3 The following refers to employment data. Component Number of people Number of people (millions) (millions) Year 2020 Year 2021 Under 16 years 6 7 Working full time 15 13.5 Retired 8 8.5 Unemployed 3 3.5 University/College students 2 2.5 Working part time 10 11.5 Housewives 3 3 a) Calculate unemployment rate for the year 2020 and the year 2021. (3 marks) b) Calculate total labor force for the year 2020 and the year 2021. (3 marks) c) Calculate total not in labor force for the year 2020 and the year 2021 (3 marks) d) Define demand pull inflation. (3 marks) e) Illustrate by using a graph show the cost push inflation effect. (3 marks)QUESTION 4 Answer the question based on the following data for a country ULAM RAJA. Items RM billions Capital inflow 27 Net transfers 23 Service import 8 Merchandise exports 40 Capital outflow 43 Merchandise imports 35 Service exports 25 Net investment income - 18 a) Find: i) the balance of trade (2 marks) ii) the balance of goods and services (2 marks) ii) the balance of current account (2 marks) iv) the balance of capital account. (2 marks) b) What official reserves will be needed to settle the balance of payment accounts? (2 marks) C) Name two (2) types of reserves that a nation normally holds? (2 marks) d) Illustrate three (3) measure to correct balance of payment deficit