1) who issues each of the following money market instruments and explain about each instrument:

a. Treasury bills

b. Certificates of deposit

c. Commercial paper

d. Repurchase agreement

e. Fed funds

2) The table shows hypothetical values, in billions of dollars, of different forms of money.

a. Use the table to calculate the M1 and M2 money supplies for each year, as well as the growth rates of the M1 and M2 money supplies from the previous year.

b. Why are the growth rates of M1 and M2 so different? Explain. 2021 2022 2023 A. Currency 800 920 925 B. Money market mutual fund shares 680 681 679 C. Saving account deposits 5,500 5,780 5,968 D. Money market deposit accounts 1,214 1,245 1,274 E. Demand and checkable deposits 1,000 972 980

F. Small-denomination time deposits 830 861 1,123 G 3-month Treasury bills 1,986 2,374 2,436

3) What are the functions of money? Explain examples.

4) A lottery claims its grand prize is $ 6 million, payable over 3 years at $2,000,000 per year. If the first payment is made at the end of first year, what is this grand prize really worth? Use an interest rate of 5%.

5) Consider a bond with a 5% annual coupon and a face value of $1,000. help with the following table. Years to Maturity Yield to Maturity Current Price 2 2% 2 4% 3 4%