2 to 3 sentence only answering questions. some questions only one sentence.

Help me study for my Business class. I’m stuck and don’t understand.

please write the answer on your own words please.

1. Frederick Macaulay is credited with introducing the concept of “duration” back in 1938. Why was this such a significant discovery?

2. The Federal Reserve has often been referred to as “the lender of last resort.” What does this mean and what is the significance of this statement?

3. Discuss why you would expect a difference in the correlation of returns portfolio risk. Specifically, why would you expect low correlation in the rates of return of domestic and foreign securities?

4. Define liquidity and discuss the factors that contribute to it. Give examples of a liquid asset and an illiquid asset, and discuss why they are considered liquid and illiquid.

5.What is the difference between a zero – coupon bond and a coupon bond ?

6.Describe the functions performed by Federal Reserve Banks.

7. Define the discount rate and the discount window.

8. What are the primary responsibilities of the Federal Open Market Committee?

9.What are the primary responsibilities of the Federal Open Market Committee?

10. What are the tools used by the Federal Reserve to implement monetary policy?