1. What is the purpose of the European Union?
2. How many countries are currently members?
3. Describe two trade-related issue IN YOUR OWN WORDS that the EU is currently facing.
4. What is the EURO? What is its purpose?
5. When was it introduced?
6. Which nations of the European Union currently use it as its currency?
7. Why was the unique symbol used for the Euro chosen?
8. What are some unique physical features of its paper notes and coins?
9. How has the European Union attempted to deal with the current financial crisis in Greece?

1. What is the IMF? How and when did the IMF come into existence?
2. How many countries currently belong to it?
3. What is the purpose of the IMF?
4. Where does the IMF get its money?
5. Which nation is the largest contributor to the IMF?
6. Who can borrow from the IMF?
7. What is the plan of the IMF and G-20 nations for dealing with the current financial crisis?
8. How has the IMF attempted to assist Emerging Economies with the current financial crisis?

Read Food Stamps Cause Global Depression by John Quiggin.
Then, visit Dr. Paul Krugman’s blog The Conscience of a Liberal: http://krugman.blogs.nytimes.com/2012/11/03/soup-kitchens-caused-the-great-depression/
Read Soup Kitchens Caused the Great Depression. Briefly summarize the issues from the two articles in your own words.

1. What were some of the unique policy actions taken by the Icelandic government during the financial crisis of 2008?
2. What were some of the advantages that Iceland had which allowed its government to make some of the unique policy decisions?
3. What are some of the current economic problems facing the Icelandic economy?
4. What is the one potential action the Icelandic government may have to take to deal with its current and future economic problems?
5. How was Iceland portrayed in the world media when the crisis first began? How was this view incorrect?

Under MARKETS at the top, CLICK on CURRENCIES. Find the value of

1. 1 Brazilian Real in terms of the Hong Kong Dollar
2. 1 Hungarian Forint in terms of the South Korean Won
3. 1 Chinese Yuan in terms of the UAE Dirham
4. 1 Indonesian Rupiah in terms of the EURO
5. 1 Japanese Yen in terms of the Malaysian Ringgit

1. What was the yen-dollar exchange rate on November 27, 2000?
2. What was the exchange rate in the most recent month and year available?
3. Has the dollar appreciated or depreciated relative to the yen between these dates? Use CORRECT Economic language! Explain how you arrived at your decision.

Now, visit the St. Louis Federal Reserve District Bank for exchange rates between the American dollar and the Euro:
http://research.stlouisfed.org/fred2/series/DEXUSEU/
and CLICK on View Data.

1. What was the Euro-U.S. dollar exchange rate on November 27, 2000?
2. What was the exchange rate in the most recent month and year available?
3. Has the American dollar appreciated or depreciated relative to the Euro between these dates? Use CORRECT Economic language! Explain how you arrived at your decision.

1. What is the purpose of foreign exchange intervention by American monetary authorities?
2. What types of transactions occur in the foreign exchange market? Briefly describe each.
3. Summarize the effects of exchange rate changes.
4. What is the role of the Federal Reserve in altering exchange rates?
5. Briefly summarize the intervention process.
6. What is a sterilization intervention? What is its purpose? Summarize the effect of it.

Now, CLICK on About the Fed and The Key to the Gold Vault

1. Where doe the United States keeps its gold reserves?
2. How many foreign countries, central banks, and international organizations store their gold under the New York Federal Reserve Bank? Why?

1. What was current Fed Chairman Ben Bernanke’s “novel” theory to explain the growing tendency of Americans to borrow from foreigners, particularly the Chinese, to finance spending?
2. In what have the Chinese in particular been investing? Why have the Chinese pursued a “weak currency” policy?
3. How has the relationship between China and America seemingly paid off for both?
4. In the 19th Century, the U.S. borrowed capital from the British to finance the building of our infrastructure. Why is this not the effect of our borrowing from the Chinese?
5. What was the Plaza Accord? What was its effect on our trade relationship with Japan and the value of the dollar?
6. Why has the financial and trade relationship between China and America been described as “Chimerica”?
7. Why were officials in the American government more concerned about cheap Chinese goods than cheap Chinese loans?
8. Why was there pressure on the Chinese to revalue their currency? What was this not very successful?
9. Why have the Chinese and Americans become even more dependent on each other?