2. The federal funds market is where the federal government borrows money. a True b. False 3. The Bernanke Rule is a formula to help the Federal Reserve conduct monetary policy to achieve a target federal funds rate. a True b. False 4. One thing a bank can do if it faces a liquidity crisis is to sell off some of its Treasury bills. a True b. False 5. The yields on money market instruments are relatively low compared with the yields of other debt instruments. a Tree b. False 6. Banks perform a very important function in society called asset transformation. a True b. False 7. A gap analysis is something a bank can do to better understand its liquidity risk. a True b. False Indicate the answer choice that best completes the statement or answers the question 8. Suppose you buy a 60-day T-bill with a face value of $1,000 at a price of $990. Your discount rate yield (ORY) would be a. 45% 6.5.0% c. 55% d. 6.0%