Question 1:
(a) Illustrate the term money and in brief describe its core functions.
(b) Describe the relationship between interest rate and price of bonds, exemplify using example.
(c) Make a distinction between the loanable funds model and liquidity preference model.
(d) “The Monetary Policy Committee of the Bank of Mauritius cuts Key Repo Rate by 50 basis points” (Bank of Mauritius, 19th March 2012) describe the impacts of the above on Mauritian economy.
Question 2:
(a) Describe the evolution of exchange rate system in the Mauritius.
(b) According to you, what factors verify exchange rates in long run?
Question 3:
“Inflation is always and everywhere a monetary phenomenon.” Explain.
Question 4:
Clearly appraise monetary policies that are accessible for banking and/or economic regulation.
Question 5:
Critically describe the potentials or threats of Monetary Union in Africa.