1. When the Federal Reserve announces an increase in the federal funds rate, how would bond prices react to the monetary policy action, i.e., increase, decrease, or stay put?
2. Suppose that in 2014, currency in circulation was $950 billion, required reserves were $60 billion, and excess reserves were $840 billion. At that time, the Federal reserve extended $70 billion in discount window loans to the banking system. The monetary base was ____ billion?
3. Does EMH imply stock returns are unpredictable? Using examples to support your arguments.