4-3 Explain the effects that historically low interest rates have on borrowers, lenders, savers, and retirees.

4-4 Briefly describe the basic operations ofand the products and services offered byeach of the following financial institutions: (a) commercial bank, (b) savings and loan association, (c) savings bank, (d) credit union, (e) stock brokerage firm, and (f) mutual fund.

4-5 What role does the FDIC play in insuring financial institutions? What other federal insurance program exists? Explain.

4-18 In general, how much of your annual income should you save in the form of liquid reserves? What portion of your investment portfolio should you keep in savings and other short-term investment vehicles? Explain.

4-21 Briefly describe the basic features of each of the following savings vehicles:

(a) CDs, (b) U.S. Treasury bills, (c) Series EE bonds, and (d) I savings bonds