1. When the Maltese lira appreciates (holding everything else constant), then:

Maltese falcons sold in the U.S. become more expensive

American software sold in Malta becomes more expensive

Maltese pottery sold in the U.S. becomes cheaper

American toothpaste sold in Malta becomes cheaper

Both (a) and (d) are true

2. Which of the following is not true of commercial paper?

it matures in nine months (actually 270 days) or less

it is issued by only the largest and most creditworthy corporations

it is normally collateralized (secured) by U.S. Treasury bills

it normally yields a higher return than T bills