1. Define the discount rate. Tell who can raise the discount rate. Explain how raising the discount rate leads to a reduction in the money supply. (5 points) 2. Describe a stock market bubble. Explain what causes a bubble, and why a crash generally follows a bubble. {5 points) 3. Describe what it means for one currency to be rising against another currency. Explain how Europeans vacationing in the United States benefit when the euro is rising against the dollar. 4. What is buying on margin? Use an example to demonstrate how buying on margin enables currency traders to make large profits on small investments. (5 points) 5. What are futures contracts and forward contracts? Describe two differences between them. A Go