Internet Exercises

1. Current Issues Regarding Money

Instructions

As discussed in the textbook, money serves many important functions in modern business. There are also many important issues associated with money. Two such issues are introduced below. Choose one issue and visit the Web site(s) to learn more about it. Return to this page to answer the questions below.

Cyber Payments Issue. The explosive growth in electronic commerce has created a need to think about and develop new payment instruments. To learn more about this, follow the web links below.

Wired Magazine archive on the future of money http://www.wired.com/wired/archive/future_of_money/

Federal Reserve Bank of Cleveland article "Making Payments in Cyberspace" http://www.clev.frb.org/research/com/pbcmty.htm

Web Site maintained by Roy Davies http://www.ex.ac.uk/~RDavies/arian/emoney.html

Money Laundering Issue. Money laundering involves disguising assets so that they can be used without getting detected. Follow the link below to learn more about money laundering.

Financial Crimes Enforcement Network http://www.treas.gov/fincen/

1. Summarize the basic issue and the problem(s) that must be resolved.

2. Why is the issue important for business and society?

3. How is the issue being addressed in the United States?

4. Go to http://www.treas.gov/fincen/cybpage.html to learn about how the two issues are related. Discuss the reasons why many in law enforcement are concerned about the future of cyber payment systems.

2. The European System of Central Banks (ESCB)

Instructions

The European System of Central Banks (ESCB) is comprised of the European Central Bank (ECB) and the EU national central banks (NCBs). Follow the link to learn more about this important organization.

European Central Bank http://www.ecb.int/

Using information from the Web site, answer the following questions:

1. What is the primary objective of the ESCB?

2. What are the basic tasks of the ESCB?

3. Describe the governing structure of the ESCB.

4. Compare and contrast the ESCB and the United States Federal Reserve System http://www.federalreserve.gov/ with respect to objectives and organization structure.