1) which of the following statements are correct?

a) funds received sooner can be reinvested to earn additional returns even if markets interest rate increases

b) since investors require higher returns on market securities, they use higher discount rates to compound the future cash flows of these securities

c) the appropriate discounts rate for valuing any asset is the yield that could be earned on alternative investments with similar risk and maturity

d) the appropriate discount rate for valuing any asset is the yield that could be earned on alternative investments with similar risk but with different maturities

e) none of the above

2) ...... are the most active participants in the federal funds market.

a) commercial banks

b) saving institutions

c) insurance companies

d) pension funds