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ECONOMICS-2015: Daily Answer Writing Challenge – 7

ECONOMICS-2015: Daily Answer Writing Challenge – 7

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1) What are the determinants of an individual’s demand for holding money given there is a fixed cost associated with converting money into bonds. (2013 – 10 marks)

2) Compare the deposit multiplier with the money multiplier. Is there any impact on the money multiplier arising out of massive use of credit and debit cards? (2014 – 20 marks)

3) Compare the various instruments of monetary policy with respect to influencing the cost and availability of credit. (2014 – 20 marks)