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Question 1:
Discuss the alternative theories of the demand for money and their relevance in specifying a demand for money function for a small island developing economy like Mauritius.
Question 2:
(a) Highlight the main measures of money supply in the Mauritian financial sytem
(b) What are the main determinants of money supply?
Question 3:
(a) What are the main objectives of monetary policy?
(b) Explain the rationale for shifting from direct to indirect market based instruments of monetary policy with financial liberalisation.
Question 4:
Discuss the main macroeconomic and microeconomic functions of a Central Bank.
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