Part A 10 marks Answer all questions of Part A in a...

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R/AA Examination Semester 1, 2016 Course ID No COURSE NAME 105517 Money, Banking & Financial Markets III ECON 3511 Official Reading Time: Writing Time: Total Duration: 10 mins 180 mins 190 mins Part Questions Time Marks A B C 1 1 3 1 hour 1 hour 1 hour 10 25 15 _______ Total: 50 Instructions Examination materials must not be removed from the examination room. Materials 3 pink books. Calculators with no text memory, graphics or remote capabilities are permitted. DO NOT COMMENCE WRITING UNTIL INSTRUCTED TO DO SO Page 1 of 4 See next Page
Part A (10 marks) Answer all questions of Part A in a separate examination book. Consider the standard overlapping generations model with two identical countries, A and B In each country, the population of every generation is 100, and each young person wants money balances worth 10 goods. There are $100 of country A money and €400 of country money. The exchange rate is fixed at 1. There are no foreign-currency controls, and the . B

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