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Part 2. Identify whether each of the following amounts is counted in MI only, M2 only, both MI and M2, or neither. 2 Pts 1. $50 billion in U.S. Treasury bills 2. $15 billion in small-denomination time deposits 3. $5 billion in traveler's checks not issued by a bank 4. $20 billion in money market deposit accounts Part 3. Identify whether each of the following events poses an adverse selection problem or a moral hazard problem in financial markets. 2 Pts 1. A loan applicant does not mention that a legal judgment in his divorce case will require him to make alimony payments to his ex-wife, 2. 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. I Part 4. Draw an empty bank balance sheet, with the heading "Assets on the left and the heading "Liabilities on the right. Then place the following items on the proper side of the balance sheet: 1 Pts 1. Loans to a private company 2. Borrowings from a Federal Reserve district bank 3. Vault cash 4. Transactions deposits Part: 5 Below, you are provided with statements related to the four different functions of money. You will identify which function of money is being described in each statement 1 Pt 1: Complete the statement below. Jason eamed $400 per month as a server when he was in high school and saved of this income each month. Today, three years later, Jason uses this money to buy his books at the University of Pennsylvania. This statement refers to money's function as a(n) (medium of exchange, unit of account, store of value, standard of deferred payment)

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