1. Answer the following questions. (25 points, 5 points for each) (a) Who issues commercial paper and for what purpose? (b) Distinguish between the primary market and the secondary market for securities. (c) A bond provides information about its par value, coupon interest rate, and maturity date. Define each of these (d) If the Federal Reserve buys dollars in the foreign exchange market but conducts an offsetting open market operation to sterilize the intervention, what will be the effect on international reserves, the money supply, and the exchange rate? (e) If Mexicans go on a spending spree and buy twice as much French perfume, Japanese TVs, English sweaten, Swiss watches, and Italian wine, what will happen to the value of the Mexican peso