2. What are the functions of money? Briefly explain each.
3. Present a typical bank's balance sheet. Identify the components on each side of the balance sheet.
4. What are financial intermediaries? What purposes do they serve? Give examples.
5. What is meant by the "money multiplier"? Add a numerical example.
6. What are the major factors which determine nominal interest rates? Be specific.
7. What are the three types of risk premium? Briefly discuss each.
8. What is the "real loanable funds market"? Give examples of the components of this market.
9. Present the lags in monetary policy. Briefly explain each lag.