(a) The following table provides data for the components of money supply for Malaysia. Items RM (Million) Fiat money 9,700 Paper money 6,740 Fixed and savings deposit in commercial banks 13,600 Fixed and savings deposits in other financial institutions 7,800 Negotiables and certificates 3,690 Central bank certificates 10,000 Current deposits in commercial banks 11,600 i. Calculate M1, M2 and M3. ii. Calculate near money and coins. (b) Inflation can be defined as a continuous increase in the general price level of goods and services in the economy. With the aid of a diagram, discuss the 2 types of inflation.

(a) The following table provides data for the components of money supply for Malaysia. Items RM (Million) Fiat money 9,700 Paper money 6,740 Fixed and savings deposit in commercial banks 13,600 Fixed and savings deposits in other financial institutions 7,800 Negotiables and certificates 3,690 Central bank certificates 10,000 Current deposits in commercial banks 11,600 i. Calculate M1, M2 and M3. ii. Calculate near money and coins. (b) Inflation can be defined as a continuous increase in the general price level of goods and services in the economy. With the aid of a diagram, discuss the 2 types of inflation.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

(a) The following table provides data for the components of money supply for
Malaysia.
Items
RM (Million)
Fiat money
9,700
Paper money
6,740
Fixed and savings deposit in commercial banks
13,600
Fixed and savings deposits in other financial
institutions
7,800
Negotiables and certificates
3,690
Central bank certificates
10,000
Current deposits in commercial banks
11,600
i.
Calculate M1, M2 and M3.
i.
Calculate near money and coins.
(b)
Inflation can be defined as a continuous increase in the general price level of
goods and services in the economy. With the aid of a diagram, discuss the 2
types of inflation.

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