Answer Happy

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