Please cite all sources of information other than the textbook. The value of questions 1, 2, and 3 is 5 each and the value of question 4 is 10. 1. Most of the time it is quite difficult to separate the three functions of money. Money performs its three functions at all times, but sometimes we can stress one in particular. For each of the following situations, identify which function of money is emphasized. a. Brooke accepts money in exchange for performing her daily tasks at her office, since she knows she can use that money to buy goods and services. b. Tim wants to calculate the relative value of oranges and apples and therefore checks the price per pound of each of these goods as quoted in currency units. c. Maria is currently pregnant. She expects her expenditures to increase in the future and decides to increase the balance in her savings account. 2. Look up the M1, M1+, M2, M2+, M2++, and M3 numbers in the Bank of Canada’s Banking and Financial Statistics (Statistics - Bank of Canada) for the most recent one-year period. Have their growth rates been similar? Which of the Bank of Canada’s measures of the monetary aggregates is composed of the most liquid assets? Which is the largest measure? 3. a. Would a dollar tomorrow be worth more to you today when the interest rate is 20% or when it is 10%? b. If the interest rate is 10%, what is the present value of a security that pays you $1100 next year, $1210 the year after, and $1331 the year after that? c. Calculate the present value of a $1000 discount bond with five years to maturity if the yield to maturity is 6%. 4. Go to the Statistics Canada website (under Data). Download the monthly data from January 1990 to December 2024 for the three-month T-bill rate and the total consumer price index (Canada, All Items). a. What is the average year-over-year inflation rate, using the formula: b. What is the average T-bill rate? c. Assume that the expected inflation rate is the same as the actual inflation rate (a restrictive assumption!) and calculate the average real interest rate, r