1. a) What are the advantages of using money in an exchange economy over thebarter system? [15marks]b) Explain the neutrality of money concept. [5marks]c) What are the consequences of increasing money supply in an economy thathas already attained full employment level. Use appropriate diagrams to support your answer. [10marks]2. a) Distinguish between simple and complex money multipliers. [8marks]b) Discuss any four instruments of money supply control. [12marks]3. a) Using appropriate diagram(s) illustrate and explain the determination ofinterest rates in a money market. [14marks]b) What do you understand by FIAT money? [6marks]
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