1. If a Big Mac costs $2.54 in the United States and 294 yen in Japan, what is the estimated exchange rate of dollar per yen as hypothesized by the Hamburger index?

2. Describe the impossible trinity of the currency regime. Provide three examples (countries) of currency regime choices and discuss them.

3. Describe the currency board system and dollarization.

4. Describe the five sub-accounts of BOP. Provide one example of transactions that should be counted into each account.

5. Explain why devaluation of home currency can benefit the home country. Explain the J-Curve Adjustment Path.