1. The instruments most used by the EDF in a Repurchase Agreement are the following except Select one:

a. Bankers Acceptance

b. T-Bill

c. Fannie Mae

d. Freddie Mac

2. To be considered a Money Market instrument, the Negotiable CD must have a face value of $10,000 to $100,000 maximum. Please select one: a. True b. False

3. When there is a general increase in business expansion in the economy, the demand for borrowed money Select one: a. decrease b. does not change c. remains the same d. increases

4. All Money Market instruments are valued on a 360 days/year basis. Please select one: a. True b. False

5. When we talk about Fiscal Policy we mean the increase or decrease of the money supply available for loan (money supply). Please select one: a. True b. False

6. If the interest rate increases, does demand decrease? Select one: a. True b. False

7. The higher the expected inflation, the higher the interest rates banks will charge when lending money. Select one: a. True b. False

8. The interest rate that reflects the monetary policy of the FED is Select one: a. Broker Loan Rate b. Prime Rate c. Discount Rate d. Fed Fund Rate

9. Of the money market instruments, the one that is considered the risk-free asset is: Select one: a. Fed Fund b. Reverse Repo c. T-Bill d. Banker Acceptance