QUESTION 3 (10 MARKS)

Below is the data for money aggregates released by the Ministry of Finance of Country XYZ for 2019 and 2020.

ITEM	RM (MILLION)	RM (MILLION)
2019	2020
Repurchase Agreements	25,125	32,570
Currency in Circulation	110,701	100,754
Fixed Deposits with commercial banks	452,700	400,743
Demand deposits	55,900	75,450
Fixed deposits with other financial institutions	18,760	20,530
Saving and deposits in commercial banks	160,000	168,000
Negotiable certificates of deposits	170,000	170,500

a. Calculate M1 for both years.

(2 marks)

b. Calculate M2 for both years.

(2 marks)

c. Calculate M3 for both years.

(2 marks)

d. Calculate Quasi Money for both years.

(2 marks)

e. Calculate percentage change in M1 between 2017 and 2018.

(2 marks)

QUESTION 4 (10 MARKS)

1. The following table shows the balance of payment for a country in 2004.

Items	RM (million)
Freight and insurance	-4,255
Other transportation	93
Income from investment	-5525
Travel	655
Other services	1,550
Export	95,750
Imports	98,230
Private short-term capital (net)	3215
Official long-term capital (net)	630
Corporate Investment (net)	9,200
Transfer Payments (net)	350
Errors and Omissions	750

Calculate:

a. Balance of services

(2 marks)

b. Current account balance

(2 marks)

c. Basic balance

(2 marks)

d. Capital account balance

(2 marks)

e. Overall balance

(2 marks)