QUESTION $2$ QUESTION $4$

$($a$)$ Explain why the demand for loanable funds tends to increase during expansion.

$(10$ marks$)$

$($b$)$ Illustrate any FIVE $(5)$ negative effects of inflation.

$(15$ marks$)$

$($a$)$ Indicate the TWO $(2)$ advantages and THREE $(3)$ disadvantages of using the

statutory reserve requirement $($SRR$)$ as a tool of monetary policy.

$(10$ marks$)$

$($b$)$ Describe FIVE $(5)$ main limitations of monetary policy which may prevent it from

achieving the intended goal effectively.

$(15$ marks$)$