need the correct answers 1 A+ Writers |

1. What is moral hazard? Briefly explain moral hazard in insurance.

2. Explain two steps needed to mitigate the effects of moral hazard.

3. Explain three motives why people hold money.

4. Briefly explain two ways the U.S. Treasury can use to affect the monetary base.

5. Briefly explain the Keynes view of monetary policy.

6. Describe the impact of lags in the conduct of monetary policy.

7. How could financial institutions (such as banks) manage interest rate exposure to risk? Explain.

8. What is liquidity risk? Explain two sources of liquidity available to the Federal Reserve Bank.