1) Stealth Bank is holding $4 million in reserves, $9 million in government bonds and $9.6 million in low risk mortgage loans. Out of the $20 million in customers' deposits, Stealth holds $13.1 million in the form of certificates of deposit. Describe the formula for determining Stealth Bank's net worth and, using the figures above, determine the Bank's net worth.

2) Define and contrast contractionary monetary policy and expansionary monetary policy and their respective economic outcomes.

3)International financial investors are moving funds from Talona to other countries causing a depreciaton in Talona's currency. This depreciation is causing even more disenchantment with this Talona's currency. Describe the affects will this have on the supply and demand curves for this currency on the foreign exchange markets? Please include the actaul graph with your describtion.