(1) List the functions of money. Describe one of the functions. (2) State the equation for the Present Value of a loan made for "n years" at a fixed interest rate. What does the concept of the Present Value enables you to assess? (3) List the criteria for deciding your investments in portfolio of assets. Describe te the Capital Asset Priing Model-CAPM (Risk Premium). What are (5) With the supply and demand for bond analysis, show how the curves will Bonus: State the equations for the nominal interest rate, and for the real the wealth factor in the context of the wealth elasticity of demand. terms in the model? move in response to an increase in E (AP/P) interest rate. Which variable in these equations should be highly watched when you are making investments