货币银行学习题 章节 (10).pdf

113 Chapter 10 Understanding Foreign Exchange D1 Interpretive 1 The more we pay for a euro the European goods are to us and the European assets are to us A cheaper cheaper B cheaper more expensive C more expensive cheaper D more expensive more expensive Answer D D1 Factual 2 Currencies of different countries are traded in the so called A money market B foreign exchange market C international reserve D currency conversion market Answer B D1 Factual 3 Generally speaking exchange rates are determined by A supply and demand B the International Monetary Fund C interest rates D differences in money growth rates Answer A D2 Interpretive 4 Importing a foreign good increases the the foreign currency and increases the the currency of the importing country in the foreign exchange market A demand for demand for B demand for supply of C supply of demand for D supply of supply of Answer B 114 Ritter Silber Udell Money Banking and Financial Markets Eleventh Edition D2 Interpretive 5 A n in exports by the U S results in a n in the supply of foreign exchange A increase increase B decrease increase C increase decrease D None of the above Answer A D3 Interpretive 6 A in the balance of payments means that we are paying out more money abroad than we are taking in resulting in a n of foreign exchange value relative to the dollar A deficit depreciation B surplus appreciation C surplus depreciation D deficit appreciation Answer D D3 Applied 7 The U S has a balance of payments surplus with Europe We would therefore expect the supply of euros to be the demand for euros Consequently the euro should A less than appreciate B greater than depreciate C less than depreciate D greater than appreciate Answer D D1 Applied 8 If the Japanese buy more Cadillacs they more yen and more dollars in the foreign exchange market A supply supply B supply demand C demand supply D demand demand Answer B D2 Interpretive 9 With a deficit in our balance of payments there is an excess dollars in the foreign exchange market causing the dollar to A demand for appreciate B demand for depreciate C supply of appreciate D supply of depreciate Answer D Chapter 10 Understanding Foreign Exchange 115 D2 Interpretive 10 With a surplus in our balance of payments there is an excess dollars in the foreign exchange market causing the dollar to A demand for appreciate B demand for depreciate C supply of appreciate D supply of depreciate Answer A D2 Interpretive 11 A deficit in our balance of payments causes the dollar to which causes the deficit to A appreciate increase B appreciate decrease C depreciate increase D depreciate decrease Answer D D2 Interpretive 12 A surplus in our balance of payments causes the dollar to which causes the surplus to A appreciate increase B appreciate decrease C depreciate increase D depreciate decrease Answer B D2 Interpretive 13 A shift in the demand curve for a foreign currency causes the foreign currency to A rightward appreciate B leftward appreciate C rightward depreciate D None of the above Answer A D2 Interpretive 14 Which of the following statements is incorrect A Whatever causes U S residents to buy more foreign goods shifts the demand curve for the foreign currency to the right B Whatever causes U S residents to buy fewer foreign goods shifts the supply curve of the foreign currency to the left C Whatever causes foreigners to buy fewer foreign goods shifts the supply curve of the foreign currency to the left D Whatever causes foreigners to buy more foreign goods shifts the supply curve of the foreign currency to the right Answer B 116 Ritter Silber Udell Money Banking and Financial Markets Eleventh Edition D1 Factual 15 Which of the following factors does not affect the long run supply and demand conditions of foreign currencies A Relative inflation rates B Relative productivity levels C Tastes for domestic versus foreign goods D All of the above affect the long run supply and demand conditions of foreign currencies Answer D D1 Applied 16 If the price of a Swiss franc is 0 60 the price of a dollar is Swiss francs A 0 40 B 1 40 C 1 67 D 6 0 Answer C D1 Applied 17 If the price of 1 is 1 67 Swiss francs the price of a Swiss franc is A 0 33 B 1 67 C 2 00 D 0 67 Answer D D2 Applied 18 The equilibrium price for a British pound is 1 60 At a price of 1 75 per British pound there would be excess the dollar and the dollar would A supply of appreciate B supply of depreciate C demand for appreciate D demand for depreciate Answer C D2 Applied 19 The equilibrium price for a British pound is 1 60 At a price of 1 55 per British pound there would be excess the dollar and the dollar would A supply of appreciate B supply of depreciate C demand for appreciate D demand for depreciate Answer B Chapter 10 Understanding Foreign Exchange 117 D2 Interpretive 20 We would expect the euro to appreciate when there is a shift in the euro demand curve or a shift in the euro supply curve A rightward rightward B rightward leftward C leftward rightward D leftward leftward Answer B D2 Interpretive 21 We would expect the euro to depreciate when there is a shift in the euro demand curve or a shift in the euro supply curve A rightward rightward B rightward leftward C leftward rightward D leftward leftward Answer C D2 Interpretive 22 Anything that causes the U S to buy more foreign goods shifts the foreign currency curve to the A demand right B demand left C supply right D supply left Answer A D1 Interpretive 23 Anything that causes the U S to buy fewer foreign goods shifts the foreign currency curve to the A demand right B demand left C supply right D supply left Answer B D1 Interpretive 24 If prices rise in Japan everything else constant the dollar against the yen and the yen against the dollar A appreciates appreciates B appreciates depreciates C depreciates appreciates D depreciates depreciates Answer B 118 Ritter Silber Udell Money Banking and Financial Markets Eleventh Edition D1 Interpretive 25 If prices rise in the U S everything else constant the dollar against the yen and the yen against the dollar A appreciates appreciates B appreciates depreciates C depreciates appreciates D depreciates depreciates Answer C D1 Interpretive 26 A rise in foreign productivity tends to foreign prices and causes the dollar to relative to the foreign currency A raise appreciate B raise depreciate C lower appreciate D lower depreciate Answer D D1 Interpretive 27 A rise in domestic productivity tends to domestic prices and causes the dollar to relative to foreign currencies A raise appreciate B raise depreciate C lower appreciate D lower depreciate Answer C D1 Applied 28 South Africa is a major wine producer As Americans become more familiar with those wines and show an increased preference for them an increased the South African rand will cause the dollar to relative to the rand A demand for depreciate B demand for appreciate C supply of depreciate D supply of appreciate Answer A D1 Interpretive 29 Considerable day to day volatility in major exchange rates is caused by A shifts in tastes or preferences for domestic versus foreign goods B international capital mobility and expectations of future exchange rates C sudden changes in productivity in one nation versus others D highly variable inflation rates in some industrialized countries Answer B Chapter 10 Understanding Foreign Exchange 119 D2 Applied 30 An increase in German Treasury interest rates all else held constant causes a rightward shift in the euros and causes the dollar to against the euro A supply of appreciate B supply of depreciate C demand for appreciate D demand for depreciate Answer D D2 Applied 31 In comparing the returns on U S and German Treasury securities investors A should forecast the future dollar euro exchange rate B may disregard the future dollar euro exchange rate C should assume the future dollar euro exchange rate is the same as today s D should assume the euro will depreciate if the German interest rate is above the U S interest rate Answer A D2 Applied 32 Suppose that one year Treasury bills yield 4 percent in the U S and 5 percent in Germany Investors will be indifferent between them if they expect the dollar over the next year to A depreciate against the euro by approximately 1 percent B appreciate against the euro by approximately 1 percent C depreciate against the euro by exactly 20 percent D appreciate against the euro by exactly 20 percent Answer B D2 Applied 33 Suppose that one year Treasury bills yield 6 percent in the U S and 4 percent in Britain Investors will be indifferent between them if they expect the dollar to A depreciate against the pound by approximately 2 percent B appreciate against the pound by approximately 2 percent C depreciate against the pound by approximately 33 percent D appreciate against the pound by approximately 33 percent Answer A D2 Applied 34 Suppose that one year Treasury bills yield 5 percent in the U S and 6 percent in France Investors will prefer the U S securities if they expect the dollar to against the euro over the next year A depreciate by less than 1 percent B depreciate by more than 1 percent C appreciate by less than 1 percent D appreciate by more than 1 percent Answer D 120 Ritter Silber Udell Money Banking and Financial Markets Eleventh Edition D2 Applied 35 Suppose that one year treasury bills yield 8 percent in the U S and 6 percent in Japan Investors will prefer to purchase the U S securities unless they expect the dollar to against the yen over the next year A depreciate by less than 2 percent B depreciate by more than 2 percent C appreciate by less than 2 percent D appreciate by more than 2 percent Answer B D2 Applied 36 A sudden expectation of future appreciation of the dollar causes funds to flow the U S and the dollar to actually A out of depreciate B out of appreciate C into depreciate D into appreciate Answer D D1 Factual 37 A worldwide system of fixed exchange rates was organized and maintained under the International Monetary Fund A in the three decades before World War I B in the years between the world wars C from the end of World War II until the early 1970s D from the early 1960s to the late 1980s Answer C D2 Factual 38 In 1992 Britain and Italy the European Monetary System and against the other major European currencies A joined fixed their currency B joined let their currency float C left fixed their currency D left let their currency float Answer D D1 Interpretive 39 Which of the following countries did not adopt the euro as their currency A Greece B Belgium C Great Britain D Finland Answer C Chapter 10 Understanding Foreign Exchange 121 D2 Interpretive 40 Under the IMF fixed exchange rate system a nation running a balance of payments deficit would have an excess its currency in the foreign exchange market and that nation s central bank would have to some of its currency to maintain the fixed exchange rate A supply of buy B supply of sell C demand for buy D demand for sell Answer A D1 Factual 41 Since the founding of the IMF most international reserves have been held in A gold B silver C U S dollars D British pounds sterling Answer C D2 Interpretive 42 A nation running a persistent balance of payments deficit while part of a fixed exchange rate system would have to international reserves in an effort to prevent its currency from A amass appreciating B amass depreciating C pay out appreciating D pay out depreciating Answer C D2 Interpretive 43 Assume that there is an excess supply of euros in the foreign exchange market If a fixed exchange rate system exists with the United States the European Central Bank would have to to prevent the euro from A buy excess euros appreciating B buy excess euros depreciating C sell euros appreciating D sell euros depreciating Answer B D1 Interpretive 44 A self correcting mechanism tending to bring a country s balance of payments into equilibrium exists under exchange rate systems A fixed and floating B floating but not fixed C fixed but not floating D neither fixed nor floating Answer B 122 Ritter Silber Udell Money Banking and Financial Markets Eleventh Edition D1 Factual 45 Lowering a fixed exchange rate by a government is called a n of that rate A devaluation B revaluation C appreciation D depreciation Answer A D2 Interpretive 46 To stay with a fixed exchange rate system a nation that is losing most of its international reserves will have no choice but to A ask for or declare a devaluation B ask for or declare a revaluation C let its currency depreciate D let its currency appreciate Answer A D2 Interpretive 47 An exchange rate system under which currencies are allowed to fluctuate with frequent interventions by central banks is called a A freely floating system B fixed system C managed floating system D None of the above Answer C D1 Factual 48 Today central banks intervene to influence floating exchange rates A never B seldom C frequently D are required Answer C D2 Applied 49 If the British sell more Rolls Royce cars to the United States the United States more pounds and more doll