Calculate how much liquidity the Bank of Thailand (BOT) needs to absorb or inject in order to maintain the current level

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Calculate how much liquidity the Bank of Thailand (BOT) needs to absorb or inject in order to maintain the current level

Post by answerhappygod »

Calculate how much liquidity the Bank of Thailand
(BOT) needs to absorb or inject in order to maintain the current level of the policy rate, given the following liquidity forecasts:
1) Demand for Monetary Base
- An increase in currency in circulation of 30 million baht
- A reduction in commercial banks' deposits at the
BOT of 10 million baht
2) Supply of Monetary Base
- 40 million baht of government bonds matures
- The government issues new bonds of 45 million
baht
• The government's deficit is 38 million baht
- The BOT bought US dollars worth 12 million baht
(settles today)
- The BOT lends 10 million baht to a bank
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply