SECTION 1 In section 1, you are required to answer all then (10 ) multiple choice questions. Each question is worth one (1) mark for a total of 10 marks. 6 Question 1 (15 points) Milton and John were having a coffee discussing the nominal versus real quantity of 9 money. Milton pointed out the distinction between the nominal quantity of money and the real quantity of money. In your own words explain the differences and similarities between the nominal and real quantity of money. In your answer also provide the demand for money according to Milton and how it differs to the approach taken by Keyne's. 15 marks HINT FOR FOR PRACTICE EXAM: refer Topic 2 readingsw Question 2 (15 points) 6 Carolyn was on a short break from her work commitments and was just about to ski, when she met up with Pablo who was also ready to ski down a black diamond slope. They were looking forward to the meeting on Basel Ill but need a formal report on the most recent requirements. 9 In your own words, what was the intent of the changes to Basel Ill capital and liquidity requirements for commercial banks? 15 marksSECTION 2 In section 2, you are required to answer all parts of the question. Each part of the question is worth three (3) marks, for a total of 15 marks. Briefly describe the following: Question 3 (3 points) 2.1 Briefly describe the major difference between primary markets and secondary marketsQuestion 4 (3 points) 2.2 Briefly describe the differences between commercial loans and consumer loansQuestion 5 (3 points) 2.3 Briefly describe two assumptions of segmented markets theory6 Question 6 (3 points) 2.4 Briefly describe precautionary demand for moneyQuestion 7 (3 points) 2.5 Briefly describe excess reserves 6SECTION 3 In section 3, you are required to answer ALL four (4) questions below. Each question is worth five (5) marks, for a total of 20 marks. Question 8 (5 points) Question 3.1: Describe the three (3) tools available to most Central Banks for controlling the money supply. (5 marks)Question 9 (5 points) Question 3.2: How do income and interest rates impact money demand according to: (5 marks) i Keynes' speculative motive ii. Tobin's speculative demandw 6 Question 10 (5 points) Question 3.3: 9 In your own words, explain the entire process of the transmission mechanism in a contractionary monetary policy. (5 marks)Question 11 (5 points) Question 3.4: Commercial banks are the principal suppliers providers of loan finance to the house hold sector. identify f different types of finance that a bank offers to individuals