TUTORIAL 1

Tutorial 1

Section A. 2 marks each.

1. What is money?

2. Give two (2) reasons for holding money.

3. State the components of M2.

4. What is metallic money?

5. Define fiat money.

Section B.

6. Explain two (2) functions of money.                   (6 marks)

7. Explain three (3) characteristics of money.         (6 marks)

8. Money can be measured using money aggregate.

What are the components of M1, M2 and M3?        (6 marks)

Please submit this tutorial to my room after the lesson finished.

Thanks you...

Objectives of Bank Negara Malaysia

The objectives of Bank Negara Malaysia as outlined in the CBA are:

• To promote monetary stability and a sound financial structure

• To act as a banker and financial adviser to the Government

• To issue currency and keep reserves safeguarding the value of the currency

• To influence the credit situation to the advantage of the country 

Over the years, the roles and responsibilitiesof Bank Negara Malaysia have evolved and expanded. Today, Bank Negara Malaysia focuses on the three pillars of central banking, namely monetary stability, financial stability and the payments system. In addition, importance is given to the developmental role of Bank Negara Malaysia, in respect to economic management, institutional building and the development of the financial system.