Problem
1. Why do money market rates move so closely together?
2. Why do central bank repo deals have such a large impact on money market interest rates?
3. What are ‘open mouth operations'? On what does their influence depend?
4. Why do international capital flows make the conduct of monetary policy more difficult?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.