1. Which of the following is NOT a reason why falling exchange rate is bad for an emerging economy that has a fair amount of foreign debt?

A. Debt deflation (rising real value of foreign debt) can happen.

B. Rising imported raw materials costs could make exports less competitive.

C. Current account balance will drop and results in balance of payment deficits

D. Import-price induced domestic inflation and monetary tightening by the central bank.

2. Software filters rely heavily on “blacklists” (lists of known “phishing” URLs) to detect fraudulent e-mails. But such filters typically catch only 17 percent of phishing URLs. Jason receives 15 phishing e-mails.

(a) What is the expected number that would be caught by such a filter? (Round your answer to 2 decimal places.)

Expected number

(b) What is the chance that such a filter would detect none of them? (Round your answer to 5 decimal places.)

Probability _____