1. What are the three basic functions of money? Describe how rapid inflation can undermine money's ability to perform each of the three functions.
2. Which two of the following financial institutions offer checkable deposits included within the M1 money supply: mutual fund companies; insurance companies; commercial banks; securities firms; thrift institutions? Which of the following is not included in either M1 or M2: currency held by the public; checkable deposits; money market mutual fund balances; small (less than $100,000) time deposits; currency held by banks; savings deposits.