II. Brief description (5 questions 5 points each) 1. Define GDP, list the equation and tell what each letter stands for. 2. In order for anything to function as money it must meet three basic requirements. List them and briefly desribe each one. 3. Why is it important to understand the difference between nominal and real interest rates? 4. List three financial intermediaries and their functions. 5. Briefly explain how a bank acts as a financial intermediary