国际金融英文版习题

1、Chapter1 balance of paymentsBalance of Payments Accounting1 Balance of paymentsa) is defined as the statistical record of a country'sinternational transactions over a certain period of time presented in the form of a double-entry bookkeepingb) provides detailed information concerning the demand

2、and supply of a country 's currencyc) can be used to evaluate the performance of a country in international economic competitiond) all of the aboveAnswer: d2 Generally speaking, any transaction that results in a receipt from foreignersa) Will be recorded as a debit, with a negative sign, in the

3、U.S. balance of paymentsb) Will be recorded as a debit, with a positive sign, in the U.S. balance of paymentsc) Will be recorded as a credit, with a negative sign, in the U.S. balance of paymentsd) Will be recorded as a credit, with a positive sign, in the U.S. balance of paymentsAnswer d3 Generally

4、 speaking, any transaction that results in a payment to foreignerse) Will be recorded as a debit, with a negative sign, in the U.S.balance of paymentsf) Will be recorded as a debit, with a positive sign, in the U.S.balance of paymentsg) Will be recorded as a credit, with a negative sign, in the U.S.

5、balance of paymentsh) Will be recorded as a credit, with a positive sign, in the U.S.balance of paymentsAnswer a)4 Suppose the McDonalds Corporation imports 100 tons of Canadian beef, paying for it by transferring the funds to a NewYork bank account kept by the Canadian Beef Conglomerate.i) Payment

6、by McDonalds will be recorded as a debitj) The deposit of the funds by the seller will be recorded as a debitk) Payment by McDonalds will be recorded as a creditl) The deposit of the funds by the buyer will be creditAnswer: a5 Since the balance of payments is presented as a system ofdouble-entry boo

7、kkeeping,a) Every credit in the account is balanced by a matching debitb) Every debit in the account is balanced by a matching creditc) a) and b) are both trued) None of the aboveAnswer c)6 A country ' s international transactions can be grouped into the following three main types:a) current acc

8、ount, medium term account, and long term capital accountb) current account, long term capital account, and official reserve accountc) current account, capital account, and official reserve accountd) capital account, official reserve account, trade account Answer: c7 Invisible trade refers to:a) serv

9、ices that avoid tax paymentsb) underground economyc) legal, consulting, and engineering servicesd) tourist expenditures, onlyAnswer: c8 The current account is divided into four finer categories:a) Merchandise trade, services, income, and statistical discrepancy.b) Merchandise trade, services, income

10、, and unilateral transfersc) Merchandise trade, services, portfolio investment, and unilateral transfersd) Merchandise trade, services, factor income, and direct investmentAnswer: b9 Factor incomea) Consists largely of interest, dividends, and other income on foreign investments.b) Is a theoretical

11、construct of the factors of production, land, labor, capital, and entrepreneurial ability.c) Is generally a very minor part of national income accounting, smaller than the statistical discrepancy.d) None of the aboveAnswer: aUSE THE FOLLOWING INFORMATION TO ANSWER THE NEXT TWO QUESTIONS10 The entrie

12、s in the “current account ” and the “capital account ”, combined together, can be outlined (in alphabetic order) as:(i)- direct(v)- other capitalinvestment (vi)- portfolio(ii)- factor incomeinvestment(iii)- merchandise(vii)-private(iv)-officialtransfertransfer(viii)- services11 Current account inclu

13、desa) (i), (ii), and (iii)b) (ii), (iii), and (vii)c) (iv), (v), and (vii)d) (i), (v), and (vi)Answer: b12 Capital account includesa) (i), (ii), and (iii)b) (ii), (iii), and (vii)c) (iv), (v), and (vii)d) (i), (v), and (vi)Answer: d13 The difference between Foreign Direct Investment and PortfolioInv

14、estment is that:a) Portfolio Investment mostly represents the sale and purchase of foreign financial assets such as stocks and bonds that do not involve a transfer of control .b) Foreign Direct Investment mostly represents the sale and purchase of foreign financial assets such as stocks whereas Port

15、folioInvestment mostly involves the sales and purchase of foreignbonds.c) Foreign direct investment is about buying land and building factories, whereas portfolio investment is about buying stocks and bonds.d) All of the aboveAnswer: a14 In the latter half of the 1980s, with a strong yen, Japanese f

16、irmsa) Faced difficulty exportingb) Could better afford to acquire U.S. assets that had become less expensive in terms of yen.c) Financed a sharp increase in Japanese FDI in the United Statesd) All of the aboveAnswer: dyears, asin many15 International portfolio investments have boomedin recent a res

17、ult ofa) A depreciating U.S. dollarb) Increased gasoline and other commodity prices.c) The general relaxation of capital controls and regulation countriesd) None of the aboveAnswer: cAnswer: c)16 The capital account measuresa) The sum of U.S. sales of assets to foreigners and U.S. purchases of forei

18、gn assets.b) The difference between U.S. sales of assets to foreigners and U.S. purchases of foreign assets.c) The difference between U.S. sales of manufactured goods to foreigners and U.S. purchases of foreign products.d) None of the aboveAnswer: b) page 6417 When Honda, a Japanese auto maker, buil

19、t a factory in Ohio,a) It was engaged in foreign direct investmentb) It was engaged in portfolio investmentc) It was engaged in a cross-border acquisitiond) None of the above. Answer: a) page 64.18 The capital account may be divided into three categories:a) Cross-border mergers and acquisitions, por

20、tfolio investment, and other investmentb) Direct investment, portfolio investment, and Cross-border mergers and acquisitionsc) Direct investment, mergers and acquisitions, and other investmentd) Direct investment, portfolio investment, and other investment Answer: d)19 When Nestl e , a Swiss firm, b

21、ought the American firm Carnation, itwas engaged in foreign direct investment.If Nestl e had only boughta non-controlling number of shares of the firma) Nestl e would have been engaged in portfolio investmentb) Nestl e would have been engaged in a cross-border acquisitionc) It would depend if they b

22、ought the shares from an American or aCanadiand) None of the above.Answer: a)20 Foreign direct investment (FDI) occursa) when an investor acquires a measure of control of a foreignbusinessb) when there is an acquisition, by a foreign entity in the U.S.,of 10 percent or more of the voting shares of a

23、 businessc) with sales and purchases of foreign stocks and bonds that do notinvolve a transfer of controld) a and bAnswer: d21 Statistical discrepancy, which by definition represents errors and omissionsa) Cannot be calculated directlyb) Is calculated by taking into account the balance-of-paymentsid

24、entityc) Probably has some elements that are honest mistakes, it canall be money laundering and drugs.d) All of the above Answer: d)22 The statistical discrepancy in the balance-of-payments accountsa) Arise since recordings of payments and receipts are done at different times, in different places, p

25、ossibly using different methods.b) Arise since some transactions (illegal transactions?) occur “off the books ”.c) Represents omitted and misrecorded transactions.d) All of the aboveAnswer: d)23 Regarding the statistical discrepancy in the balance-of-payments accountsa) There is some evidence that f

26、inancial transactions may be mainly responsible for the discrepancy.b) The sumof the balance on the capital account and the statistical discrepancy is very close to the balance of the current account in magnitude.c) It tends to be positive one year and negative in others, so it 's safe to ignore

27、 itd) a) and b)Answer: d)24 When a country must make a net payment to foreigners because of a balance-of-payments deficit, the central bank of the countrya) Should do nothingb) Should run down its official reserve assets (e.g. gold, foreignexchanges, and SDRs)c) Should borrow anew from foreign centr

28、al banks.d) b) or c) will workAnswer: d)25 Continued U.S. trade deficits coupled with foreigners' desire todiversify their currency holdings away from U.S. dollarsa) could further diminish the position of the dollar as the dominant reserve currencyb) could affect the value of U.S. dollar (e.g. t

29、hrough the currency diversification decisions of Asian central banks)c) Could lend steam to the emergence of the euro as a credible reserve currencyd) All of the aboveAnswer: d26 Currently, international reserve assets are comprised ofa) gold, platinum, foreign exchanges, and special drawing rights(

30、SDRs)b) gold, foreign exchanges, special drawing rights (SDRs), andreserve positions in the International Monetary Fund (IMF)c) gold, diamonds, foreign exchanges, and special drawing rights (SDRs)d) reserve positions in the InternationalMonetary Fund (IMF), onlyAnswer: b27 International reserve asse

31、ts include“ foreign exchanges ”. Thesearea) Special Drawing Rights (SDRs) at the IMFb) reserve positions in the International Monetary Fund (IMF)c) Foreign currency held by a country's central bankd) None of the aboveAnswer: c28 The most important international reserve asset, comprising 94 perce

32、nt of the total reserve assets held by IMF membercountries isa) Goldb) Foreign exchangesc) Special Drawing Rights (SDRs)d) Reserve positions in the International Monetary Fund (IMF)Answer: b29 The vast majority of the foreign-exchange reserves held by central banks are denominated ina) Local currenc

33、iesb) U.S. dollarsc) Yend) EuroAnswer: b30 The U.S. Trade Deficita) Is a capital account surplusb) Is a current account deficitc) Is both a capital account surplus and a current account deficitd) None of the aboveAnswer: c31 Over the last several years the U.S. has run persistenta) Balance-of-paymen

34、ts deficitsb) Balance-of-payments surplusesc) Current Account deficitsd) Capital Account deficitsAnswer: c32 More important than he absolute size of a country'sbalance-of-payments disequilibriuma) is the nature and cause of the disequilibriumb) is whether it is a trade surplus or deficitc) is wh

35、ether the local government is mercantilist or notd) Nothing is more important than he absolute size of a country'sbalance-of-payments disequilibriumAnswer: aThe Relationship between Balance of Payments and National Income AccountingFor questions in this section, the notation isY = GNP = national

36、 incomeC = consumptionI = private investmentG = government spendingX = exportsM = imports33 National income, or Gross National Product is given by:a) GNP= Y = C + I + G+ X + Mb) GNP= Y 二C + I + G+ X-Mc) GNP= I = C + Y + G+ X-Md) GNP= Y 二C + I + X+ M-GAnswer: b)34 Which of the following is a true sta

37、tement?a) BCA 三 X - Mb) BKA 三 X - Mc) BKA - BCA三 X - Md) BKA 三 X - MAnswer a)35 There is an intimate relationship betwe en a country 's BCA and howthe country finances its domestic investment and pays for governmentexpenditures. This relationship is given by BCAI) + (T - G). Given this, which of

38、 the followingis a true statement?a) If (S - I) < 0, it impliesthat a country ' s domestic savingsis insufficient to finance domestic investment.b) If (T - G) < 0, it implies that a country' s tax revenue isinsufficient to finance government spendingc) both a) and b) are trued) none of

39、 the aboveAnswer c)36 There is an intim ate relationship between a country ' s BCA and howthe country finances its domestic investment and pays for government expe nditures. This relatio nship is give n by BCA= X M = (S I) + (T - G). Given this, which of the followingis a true statement?a) If (S

40、 I) < 0, it implies that a country' s domestic savingsis insufficient to finance domestic investment.b) If (T - G) < 0, it implies that a country' s tax revenue isinsufficient to finance government spendingc) when BCAis negative, it implies that government budget deficitsan/or part of domestic investment are being finance with foreign-controlled capitald) all of the above are trueAnswer d)37 There is an intimate relation