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1.What is the federal funds rate? How is it created? 2.What are the advantages of putting money into a money market account versus putting the

1.What is the federal funds rate? How is it created?

2.What are the advantages of putting money into a money market account versus putting the money into a bank account?

3.During the recession of 2008, the federal government spent more money than it brought in through taxes. To compensate for the difference in such situations, the government must borrow the difference. Which money market instrument should the government purchase? How is this instrument issued, and what makes it such an attractive investment?

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