PLEASE ANSWER QUESTIONS 1. A,B,C and D. Also, answer question 2,3,4 with 2-3 sentences each question!

1. Recently the FED raised interest rate by 25 basis point and announced a net rise of 1 percent over a year as a response to high inflation. a. How does the FED implement such policy? b. How does it affect the bond market? c. What happens to the money supply? d. How does mortgage rate react to such moves? Do you expect your mortgage costs to " rise? 2. (True/False. Explain) T-bills are discount bonds. 3. What is a repurchase agreement (repo)? How different are repo rates compared to Fed funds rate? I,. 4. (True/False. Explain) Certificate of Deposits (CDs) must be held until maturity. 1. Recently the FED raised interest rate by 25 basis point and announced a net rise of 1 percent over a year as a response to high inflation. a. How does the FED implement such policy? b. How does it affect the bond market? c. What happens to the money supply? d. How does mortgage rate react to such moves? Do you expect your mortgage costs to " rise? 2. (True/False. Explain) T-bills are discount bonds. 3. What is a repurchase agreement (repo)? How different are repo rates compared to Fed funds rate? I,. 4. (True/False. Explain) Certificate of Deposits (CDs) must be held until maturity