Use the following graph, which shows the market for euros, to answer the next question. Q*=1 Euro.Assume the U.S. and European governments adopt a system of flexible exchange rates. One U.S. dollar will purchase how many euros?

Banks face liquidity risk because

A) they can have difficulty meeting their depositor's demands to withdraw money. B) they are unable to borrow from the Federal Reserve. C) households and businesses may seek to borrow a large amount of funds in a short period of time. D) governments tend to run high budget deficits.

Which of the following factors is least likely to affect what goods and services countries end up trading in the international market?

a. International trade tariffs b. Government debt levels c. Comparative advantages d. Differences in tastes e. Different technological needs