Please answer 15-7, 15-9

ued by a bank d. $20 billion in money market deposit accounts 15-7. Identify whether each of the following items is counted in MI only, M2 only, both MI and MZ, or neither. a. A $1,000 balance in a transactions deposit at a mutual savings bank b. A $100,000 time deposit in a New York bank c. A $10,000 time deposit an elderly widow holds at her credit union d. A $50 traveler's check not issued by a bank e. A $50,000 savings deposit 15-8. Match each of the rationales for financial interme- diation listed below with at least one of the follow- ing financial intermediaries; insurance company, pension fund, savings bank. Explain your choices. a. Adverse selection b. Moral hazard c. Lower management costs generated by larger 15 scale 15-9. Identify whether each of the following events 15 poses an adverse selection problem or a moral haz- ard problem in financial markets. a. A manager of a savings and loan association responds to reports of a likely increase in federal deposit insurance coverage, She directs loan officers to caend mortgage loans to less credit- 15- worthy borrowers b. A loan applicant does not mention that a legal 15. judgenent in his divorce case will require him to make alimony payments to his ex-wife. c. An individual who was recently approved for a loan to start a new business decides to use some of the funds to take a Hawaiian vacation