Question: please do not use hand writing Question 1 Define financial markets? Question 2 Explain how budget deficit affect national saving, investment and interest rate? Question

please do not use hand writing

Question 1 Define financial markets?

Question 2 Explain how budget deficit affect national saving, investment and interest rate?

Question 3 According to the Saudi Central Bank; money supply (M3) in Saudi Arabia was 2,204,765,000,000 SAR on April 2021 & it was 2,213,415,000,000 SAR on May.If the Required Reserve from the SCB is 10%; Calculate the money multiplier & by how much money supply will increase? First, calculate the money multiplier and then multiply the difference between new and old money supply by the money multiplier to find the increase in money supply.

Question 4 Real GDP in Saudi Arabia is 2,531,405,827,955 SAR.If the Price level is 20 SAR and money supply is 2,213,415,000,000 SAR.Calculate:

a-Nominal GDP.

b-Velocity? And briefly explain in words what does this number means. (explain only on one sentence)

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