
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:(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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