12. (TCO 1) The money market is important because (Points : 2) (a) it is the world’s liquidity market. (b) it is the market in which the Fed conducts monetary policy. (c) the federal government finances most of its credit needs in the money market. (d) All of the above Q 13. (TCO 1) Federal Funds are typically (Points : 2) (a) treasury deposits. (b) Federal Reserve assets. (c) commercial bank deposits at the Federal Reserve. (d) Federal Reserve deposits. 4. (TCO 1) Profitability of financial intermediaries derives from all of the following except (Points : 3) (a) government regulation of interest rates. (b) economies of scale. (c) ability to manage credit risk. (d) control of transactions costs.