Academic Session 2022

MAY 2022 Semester

ASSIGNMENT

BBM501/03 Economic Environment of Business

INSTRUCTIONS TO CANDIDATES:

1. This assignment is the final assessment to replace the proctored examination.

2. This assignment consists of FOUR (4) questions. Answer ALL questions

3. You are allowed a maximum of one (1) attempt to submit your assignment.

4. The assignment will be made available from 11th July 2022, Monday (00:00) until 9th
August 2022, Tuesday (23:59).

5. Completed assignment must be submitted by 9th August 2022, Tuesday (23:59).

Copyright © 2022 WOU

All questions are based on the article below

Article: Monetary policy need not be tied to interest rate manipulation (source:
https://www.malaymail.com/news/what-you-think/2022/02/17/monetary-policy-need-not-be-tied-
to-interest-rate-manipulation-jason-loh-an/2042195)

Question 1

Explain how a central bank might use monetary policy to stabilize economic activities (30 marks)

Question 2

Describe the monetary policy framework of Bank Negara Malaysia (20 marks)

Question 3

Discuss the reasons for not supporting a hike in interest rates in Malaysia (20 marks)

Question 4

Assess recent inflation indicators and comment on whether there is cause for concern about rising
inflation (Hint: look for Consumer Price indicators in the following link -
https://www.bnm.gov.my/-/monthly-highlights-and-statistics-in-february-2022) (30 marks)

END OF ASSESSMENT