1.When does the Fed use a stimulative monetary policy and when does it use a restrictive-monetary policy? What is a criticism of a stimulative monetary policy? What is the risk of using a monetary policy that is too restrictive?

2. Should firms invest in money market securities? (elaborate on your answer)

3. Should financial institutions invest in junk bonds?(elaborate on your answer)

4. Does governance of firms affect the prices of their bonds?(elaborate on your answer)

5. Is the trading of mortgages similar to the trading of corporate bonds?(elaborate on your answer)