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Assignment 3
Q1: What is money multiplier? How is it related to the reserve ra
Assignment 3
Q1: What is money multiplier? How is it related to the reserve ratio? Calculate the total maximum and total minimum possible money supply due to the deposit of 200 SAR in a bank. The country follows a fractional reserve banking system, and the Reserve ratio is 20%.[2.5 Marks]
Q2: What are the main causes of Unemployment? Do you agree that technological up-gradation in any industry may cause unemployment in that industry? Provide your opinion with one example. [2.5 Marks]
Q3: Structural unemployment in many countries touched its highest peak during the coronavirus pandemic, but it seems that most of the industries in KSA were not that much affected. Discuss the role of the Saudi Government in reducing the impact of Corona pandemic on employment in Saudi Arabia. [2.5 Marks]
Q4: Adverse Selection and Moral Hazard are two important problems of Insurance companies. Explain each with the help of an example. Also, suggest solutions to the Insurance companies to tackle these problems in the insurance market.[2.5 Marks]
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