1.Russian business man Boris travels each year from moscow to las vegas. he obeserved that one usd was worth 62 russian rubles a year ago while today, it is worth 76 rub.

a. did the RUB appreciate or depreciate against the USD? by what percentage?

b. If inflation during the past year was 10% in Russia, and 1% in the US, by how much percentage will Boris' purchasing power have changed when he travels to las vegas tomorrow, assuming no chage in the exchange rate between today and tomorrow?

2.Consider the information regarding the MNO commercial bank ( in million dollar)

vault cash 25

deposit at the central bank 75

loans 20

checking deposit 150

required reserves ration 20%

a. what is MNO's maximum lending capacity?

b. how much can it lend today?

c. Assume that it reaches maximum lending capacity by the end of the day. What could it reasonably do to lend more tomorrow?