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Homework answers / question archive / 1 Mutual funds or pension funds are normally less inclined to take control of the MNC that they have a substantial stock holding
1 Mutual funds or pension funds are normally less inclined to take control of the MNC that they have a substantial stock holding. For this reason, these funds do not affect the decisions of managements of such MNC.
True
False
2
Select any TWO (2) objectives of Bank Negara and critically analyse the successes and misses of these objectives in the context of the central bank’s role in the country’s monetary and banking structure.
1 Answer: True
Explanation:the
The purpose of such funds is not to take controlling interest in companies and to manage them. Instead, they would be interested in furthering the interests of the investors who have the entrusted funds.
However, they might step in if, any decision would seriously Impact their interests.
2
Bank Negara is the central bank of Malaysia and it is having objectives in relation to-
A. Primary objective of bank negara is to maintain a proper level of monetary flow in the entire economy and it has to design a proper monetary policy in order to determine the flow of money in the economy through controlling and stimulating the demand and it will also help in controlling and stimulating inflation in the economy so it will help in overall monetary demand and supply in the economy and maintain economic stability to counter different economic cycles.
Central Bank of Malaysia has been successful to a large extent in order to control the monetary flow in the economy.
B. it has another objective of generation of adequate employment in the economy which will be helpful in supporting Gross Domestic Product and it will also help in maintaining the economic stability in the country.
The bank has been successful to a large extent because it can be seen that Malaysia has a large proportion of of development through high level of employment.