ECON 214 Problem Set 5 (ECON214)

1) What are the three functions of money? Which function is the defining characteristic? 2) How is the discount rate different from the federal funds rate? 3) Consider the balance sheet for the Wahoo bank as presented below. Wahoo Bank Balance Sheet Assets Liabilities government securities $1,600 Liabilities: Checking accounts $4,000 Required Reserves $400 Net Worth $1,000 Excess Reserves $0 Loans $3,000 Total Assets $5,000 Total Liabilities $...