(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.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 12PA

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