2. What are the functions of money? Briefly explain each. 3. Present a typical bank's balance sheet. Identify the compon

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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.