Select any three (3) of the following questions to answe. As you develop your essay, remember to include not only text materials but also contemporary materials as well. These can come from various sources and can reflect domestic and/or global concerns.

1. What is the federal funds rate? How is it created?
2. During the recession of 2008, the federal government spent more money than it brought in through taxes. To compensate for the difference in such situations, the government must borrow the difference. Which money market instrument should the government purchase? How is this instrument issued, and what makes it such an attractive investment?>
3. What are the three agencies that currently rate bonds? How do the three agencies classify a downgrade? Why is a downgrade a serious issue?