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QUESTION 3 [20 MARKS] [UNIT 2] (a) Elaborate on the FIVE (5) factors/determinants that affect the money multiplier through excess reserves. [15 Marks] (b)

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QUESTION 3 [20 MARKS] [UNIT 2] (a) Elaborate on the FIVE (5) factors/determinants that affect the money multiplier through excess reserves. [15 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? [5 Marks]

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