Question: SECTION B - STRUCTURED QUESTIONS [TOTAL = 20 MARKS] Answer ALL the questions. QUESTION 1 (10 MARKS) a) During the 1997 Asian financial crisis, Malaysia

SECTION B - STRUCTURED QUESTIONS [TOTAL = 20 MARKS] Answer ALL

SECTION B - STRUCTURED QUESTIONS [TOTAL = 20 MARKS] Answer ALL the questions. QUESTION 1 (10 MARKS) a) During the 1997 Asian financial crisis, Malaysia did not apply for any IMF assistance. Discuss TWO (2) strategies implemented by Malaysia to weathered the crisis. (4 marks) b) Why would some country practise dollarization? (2 marks) c) Identify the purpose of the introduction of Euro currency. (4 marks) QUESTION 2 (10 MARKS) a) Gold standard established an exchange rate system whereby people could exchange the dollar both domestically and internationally, at the mint parity rate. Define mint parity rate. (2 marks) b) Explain Protectionism and Isolationism in the Inter-War years. (4 marks) c) Bretton Woods System 1944 is a modified exchange standard based on US dollar monetary system. Discuss why the system does not survived? (2 marks) d) Name ONE (1) disadvantages of flexible exchange rate system. (2 marks) )

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