- 20 Marks
MFS – OCT 2022 – L2 – Q4 – Government Borrowing Impact on Money Supply
Discuss impact of government borrowing on money supply and list constraints on money supply growth.
Question
a) Government borrowing from the banking system through the issue of government securities has a substantial impact on money supply. Discuss this statement with the aid of the relevant examples. (15 Marks)
b) List the constraints that limit the growth of money supply. (5 Marks)
[Total Marks: 20]
Find Related Questions by Tags, levels, etc.
- Tags: Banking System, Constraints, Government Borrowing, Government Securities, Money Supply
- Level: Level 2
- Topic: The money supply
- Series: OCT 2022
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