7. Andy keeps his savings in a money Charlie keeps his in a bank. Who is using direct finance market mutual fund, Ben ineps a. Andy b. Ben C. Charlie d. all three You take $500 out of your checking account and put it into a money market dest Is the overall effect on M1 and M2? 8. a M1 fall by $500, M2 rises by $500 b. M1 is unchanged, M2 is unchanged c. M1 falls by $500, M2 is unchanged d. M1 is unchanged, M2 rises by $500 9, Aaron takes$100 out of his checking account and pts in his gig smut- from his money market mutual fund in the form of cash The sotal eflet istsa M2 a. is unchanged, fall by $1.00 b. is unchanged, is unchanged c. rises by $100, falls by $100 d. rises by $100, is unchanged 10. A zero coupon bond, trading @$950 for a $1000 payment would have a rate of a. 4.96% b. 5.10% c. 6.11% d. 5.26% 11. Gary has $5000 in cash. He deposits $1000 in his checking account, buys $500 puts $1500 in his money-market mutual fund, and buys a $2000 CD. The effect o of $3500 a. True b. False 12. An investor who has a tax rate of 40% and expects to earn aeturn of 61% t tax rate expected return of 2.6%. a. True b. False 13. A $100 bill represents inside money a. True b. False 14. A travelers check represents inside money a. True b. False