Q.1(a) Write down the definitions of broad monetary aggregates (R, M1, M2 and M3) for Pakistan? What does each component of these monetary aggregates represent? (b) Collect annual data on each of the components of R, M1, M2 and M3 for the period 2001-2022. Divide the data into sub-periods of at least three years each (based on country's economic performance), then: i. Obtain average values of the income velocity of money for each sub-period and plot them on a graph together with the average value of the money market rate of interest (call money rate). Comment on your results. ii. Calculate the values of the currency-deposit ratio, demand deposits-deposits ratio, time deposits- deposits ratio, reserve-deposit ratio and foreign currency-deposit ratio. (Let deposits be the sum of demand, time and foreign currency deposits). Divide the data into different sub-periods on the basis of the behavior of the variables and analyze your results. iii. Calculate the value of the money multiplier? What is the relation between the money multiplier and currency-deposit and reserve-deposit ratios? Money multiplier and the money market rate of interest? Money multiplier and real national income? Money multiplier and the rate of inflation? Q.2 Collect monthly data on discount rate, call money rate (or KIBOR), t-bill rate, interest rate on excess reserves (SBP repo and reverse repo rates) from June 2014 to December 2022. Does the data confirm to the hypothesis that Pakistan's monetary policy follows an interest rate corridor framework? Using this information, explain how does SBP implements its monetary policy decisions.