1.) Explain the importance of exchange rates in the global economy. Could I also get an example please, thanks.

2.) Economists assert that financial markets serve the function of efficiently allocating capital. What is meant by the function? Explain and include an example.

3.) What are two functions of money?

4.) What are some ways in which banks deal with credit risk?

5.) What are two areas of financial services that are most prone to conflicts of interest? Why are they so susceptible?