2 Conduct an online search for an Internet bank. Describe the services it offers. How do these services differ from the services offered by a regular commercial bank? Would you bank at an Internet bank? Why or why not? 3 Find some banks in your region and compare services and fees. Which Bank has the best deal and why? Go to www.bloomberg.com/markets/rates/index.html 4 How does the yield on Treasury securities with longer maturities differ from the yield on Treasury securities with shorter yields? Why do you think the yields vary with the maturity? 5 What is the yield on a 3-month T-bill? On a 6-month T-bill? If you needed funds in six months, you could invest in two consecutive 3-month T-bills or in one 6-month T-bill. Which strategy would you choose? Why? 6 What is the difference between the 10-Year Treasury yield and the 10-year A rated (or better / investment grade) Corporate bond yield? Which do you think would be a better investment? Which would you feel more comfortable investing in considering your level of risk aversion?

7 Go to http://www.bankrate.com/finance/federal-reserve/what-changes-cd-rates.aspx\

http://www.bankrate.com/finance/federal-reserve/what-changes-mortgage-rates.aspx

http://www.bankrate.com/finance/federal-reserve/what-changes-mortgage-rates.aspx

Review these sites and briefly describe how they could be useful. What determines how various interest rates are set or determined?

Is there anything that these all have in common?