Description.
QUESTION 1:
During the period between the petroleum discovery and its extraction, the current account of a country moved sharply into deficit. Can you link these two events using macroeconomic theory?
QUESTION 2:
A commercial bank decides to borrow some precious metals from the central bank at the prevailing lease rate. It then immediately sells the precious metals and invests the proceeds in long term treasuries.
Note that sources that should be used are lecture slides and textbook. Avoid using internet sources as this exam should cover the material learnt in class.
