QUESTION 2: ( 25 Points)

Explain the following concepts of money markets:

1. Market Participants (5 Points):

2. Basis Points (5 Points):

3. The Discount Window (5 Points):

4. Treasury Bills (5 Points):

5. If A dealer purchases a US Treasury bill with 30 days to maturity at a quoted discount rate of

4.5%. The face value is $80,000. Pls calculate the Settlement Amount (5 Points):