Problem 1: Why does borrowing short and lending long present a potential problem for banks?
Problem 2: What are two effects that a government guarantee of financial institutions can have and why?
Problem 3: After a major storm cash held by individuals has increased. Should the Fed buy or sell bonds and why?
Problem 4: How does the distinction between nominal and real interest rates add uncertainty to the effect of monetary policy on the economy?
Problem 5: What are five problems in the conduct of monetary policy?