2. An investment bank is a financial institution that A. Bundles small deposits into larger loans B. Helps corporations raise funds C. Holds most of its assets in commercial paper D. Does all of the above E. Does only A and B of the above in 3. A discount loan by a central bank to a commercial bank causes a(n) reserves in the banking system and a(n) in the monetary base. A. increase; decrease B. decrease; decrease C. decrease; increase D. increase; increase 4. You are interested in purchasing a used car. At a used car dealership, you know that the book value for the cars you are looking at is between 16,000 and 20,000. If you believe the dealer knows as much about the car as you, how much are you willing to pay? - Is it A. . C. D. 16,000 20,000 18,000 17,000