1. The International Monetary fund (IMF) concluded the Article IV consultation on Fiji. The IMF recommended that fiscal consolidation should be primarily expenditure based. Elaborate on the statement.
2. The private sector holds $40 billion in notes and coins. The banking system has deposits totaling $160 billion, against which they hold reserves of $10 billion. They currently keep $3 billion of their reserves in their tills or vaults to meet day-to-day withdrawals, and $7 billion at the Reserve Bank. The banks also own liquid government securities worth $6 billion. a. Calculate the money supply. b.Calculate the money multiplier
3. Elaborate on the statement "money multiplier is far less than the simple deposit multiplier"
4. "The Reserve Bank can perfectly control the amounts of reserves in the system". Is this statement true, false or uncertain? Explain.