QUESTION ONE
a) Distinguish between money, near money, and money substitutes. (6 marks)
b) Give a critical analysis of the evolution of money from to E-money. (7 marks)
c) Briefly describe Money market and explain how they can be used in monetary policy implementation. (6 marks)
d) Discuss the economic impact of increased supply of money in an economy. (6 marks)
(Total 25 marks)
QUESTION TWO
a) Briefly explain the “monetary policy”. Critically examine the objective of monetary policy in a developing economy. (9 marks)
b) Explain the factors that limit the effective use of monetary policy in developing countries. (6 marks) (Total 15 marks)
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