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Q4) Explain the meaning of surplus units and deficit units. Provide an example of each. Which type of financial institutions do you deal with? Explain

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Q4) Explain the meaning of surplus units and deficit units. Provide an example of each. Which type of financial institutions do you deal with? Explain whether you are acting as a surplus unit or a deficit unit in your relationship with each financial institution. (2 marks) Q5) How is money supply growth affected by an increase in the reserve requirement ratio? (1.5 marks)

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