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QUESTION 3 (a) Elaborate on the FIVE (5) factors/determinants that affect the money multiplier through excess reserves. (15 marks) (b) Suppose that Bank Negara
QUESTION 3 (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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