Question:

1.Explain the factors that limit the application of monetary tools in the economy of developing countries

2.Economies is concerned with allocation of scarce resources ' outline three resources allocation decisions in an economy

3.Discuss the importance of the concept of opportunity cost in an economy

4.Suggest four contractionary monetary policy measures that could be used to combat the level of inflation in a developing country

5.Explain the monetary views on the quantity theory of money

6.'there have been deliberate attempts to control the rate of interest in some developing countries'

Explain five advantages of rate controls in an economy

7.Describe three ways in which a government could use fiscal policy to stimulate economic growth in a country

8.Explain three motives of holding money as an advanced by the Keynesian liquidity preference theory

9 Describe five instruments of monetary policy that could be used to control the level of money supply

10Describe five factors that limit the effectiveness of monetary policy in developing countries and states

11Suggest four contractionary monetary policy measures that could be used to combat a high level of inflation

12Explain four factors that limit or could limit the effectiveness of credit creation by commercial banks

13Argue for and against a fixed exchange rate system in an economy. Give valid explanations or illustrations where necessary

14Explain six causes of the ever rising budget deficits in developing countries

15Devaluation of currencies of developing countries tends to be ineffective

With reference to this statement, analyze the factors that limit the effectiveness of devaluation in developing countries

16With reference to Keynes liquidity preference theory , distinguish between speculative motive and precautionary motive of holding wealth as money

17Outline four factors that limit the effective implementation of monetary policy in developing countries

18Highlight the limitation on the process of credit creation by commercial banks in a developing country

19Summarize five major reasons why unemployment is a major policy issue in developing country

20Suggest five policy measures that could be adopted to reduce the level of unemployment in a country

Determine the category of financial benefits or costs for each scenario given in the following table. The category available: tangible benefit, intangible benefit. one-time-cost, and recurring cost. Reminder: Please separate each answer into a different line and include relevant label in front of your answer Example: a. Intangible benefit b. Intangible benefit C. Intangible benefit d. Intangible benefit No. Scenario Category Example Increased organizational flexibility Intangible benefit A. New hardware and software purchases b. Application software maintenance C. Cost and error reduction d. Faster decision makingQ1: (Hypothetical) In IIIE total 800 students applied in MSc programs, 200 in IBF, 250 in Economics and 350 in Economics and Finance program. A test of 100 marks was conducted for admission into these degree programs. Note Following information: marks obtained by Economics students are normally distributed with mean 60 marks and SD 12marks marks obtained by Economics and Finance students are normally distributed with mean 58 marks and SD 13marks Now answer following questions: L How many of the economics students obtained marks between a 35 and 65 b. 20 and 80 C. 5 and 95 ii. Grade "A" is assigned to student who obtained marks 80 or more, how many students of Economics and finance got "A" grade? Suppose in previous MSc IBF class there were 20 students, out of which 5 were foreigners. Suppose 5 students are randomly selected for a group discussion on Islamic and Conventional Banking. What is the probability that a. Exactly three foreigners students are selected b. Less than three foreigners students are selected c. At least three foreigners students are selected d. At most three foreigners students are selectedThe component of the capital and financial account include: (select the best choice) universal transfers. balance of trade. universal transfers and direct foreign investment. e balance of trade and direct foreign investment. direct foreign investment. balance of trade and universal transfers.The marginal benefit of an additional beach towel is $12. The marginal cost of producing an additional beach towel is $8. If producers are minimizing the average costs of production, then we can conclude: O beach towel production is neither allocationly nor productively efficient O beach towel production is not allocationly efficient but is productively efficient. O beach towel production is allocationly efficient but not productively efficient. beach towel production is both allocationly and productively efficient