1. Describe the international financial system. 2. Explain why it is correct to say the Federal Reserve functions as the government's bank but it is incorrect to say it controls the government's budget. 3. What are the three main functions a central bank performs in its role as a banker's bank? 4. Traveler's checks have no reserve requirements and are included in M1. When people travel during the summer and convert some of their checking account deposits into traveler's checks, explain what happens to the monetary base