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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

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

  1. Calculate M1 for both years.

(2 marks)

  1. Calculate M2 for both years.

(2 marks)

  1. Calculate M3 for both years.

(2 marks)

  1. Calculate Quasi Money for both years.

(2 marks)

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

(2 marks)

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