1. Federal Reserve and other central banks are constantly evaluating the advantages and challenges of using central bank issued digital currencies. Briefly discuss some of the potential advantages and concerns, particularly, during current pandemic and economic downturn. 2. Explain relative purchasing power parity. Based on the empirical evidence, does PPP holds all the time for all countries and currencies? Explain how you can test if PPP holds for two countries/currencies. What results of your test will indicate that PPP holds?