1. Michael has been dollar cost averaging in a mutual fund by investing $2,500 at the beginning of every quarter for the past 7 years. He earns an average annual compound return of 9% on this investment, compounded quarterly. How much is the fund worth today?
$92,721.95.
$94,996.80.
$98,221,92.
$101,682,56.
2. Assume that the Federal Reserve announced that they will sell $500 billion worth of US Treasury securities through open market operations. This action will ___ money supply and most like ___ economic output.
increase; deflate
decrease; deflate
decrease; stimulate
increase; stimulate