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QUESTION 3 [10 MARKS] (a) Elaborate on the FIVE (5) factors/determinants that affect the money multiplier through excess reserves. [7.5 marks) (b) Suppose that Bank

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QUESTION 3 [10 MARKS] (a) Elaborate on the FIVE (5) factors/determinants that affect the money multiplier through excess reserves. [7.5 marks) (b) Suppose that Bank Negara Malaysia sells RM1 billion of government securities to banks in the open market operation, what is the impact on monetary base? [2.5 marks]

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