1. The Plainbank has $29 million in cash and equivalents, $41 million in loans, and $35 million in core deposits. a. Calculate the financing gap. (Enter your answer in millions.) Financing gap $ million b. Calculate the financing requirement. (Enter your answer in millions.) Financing requirement
2. Purchasing Power Parity implies offsetting changes in price levels and exchange rates. What evidence is there to support this idea?(400 words)
3. Explain the factors affecting exchange rates in a floating exchange rate system. (more details).