Answer the two questions below based on the following statement: “The Fed sped up its purchases of commercial paper from the money market mutual fund industry in an effort to balance the deposit withdrawals from nervous, risk-averse investors.”

a. What does this “risk-averse” investor behavior mean for the commercial paper market and for the yields of such instruments?

b. Now that the Fed has stepped in to support the market, what do you think would happen to this market? If you were an investor, would you purchase commercial paper? Explain your answer.