Which of the following institutions can not borrow from the Federal Reserve at the discount window?

According to the doctrine of purchasing-power parity, which of the following should depreciate if over the next year the inflation rate is higher in the U.S. than in the Euro area?

a. both the U.S. real exchange rate and the U.S. nominal exchange rate b. the U.S. real exchange rate, but not the U.S. nominal exchange rate c. the U.S. nominal exchange rate, but not the U.S. real exchange rate d. neither the U.S. nominal exchange rate nor the U.S. real exchange rate

Banking under a system of fractional reserves is a(n)

A. inherently risky business that is unsafe regardless of bank management. B. inherently risky business that is relatively safe under prudent management. C. fairly safe business unless management is irresponsible. D. fairly safe business with no unusual risks.