国际金融英文版习题

1、is defined as the statistical record of a country s international transactions over acertain period of time presented in the form of a double -entry bookkeeping provides detailed information concerning the demand and supply of a countrycurrencycan be used to evaluate the performance of a country in

2、international economic competition all of the aboveChapter1 balance of payments Balance of Payments Accounting 1 Balance of paymentsb)c)a)d) Answer: d 2 Generally speaking, any transaction that results in a receipt from foreignersWill be recorded as a debit, with a negative sign, in the U.S. balance

3、 of payments Will be recorded as a debit, with a positive sign, in the U.S. balance of payments Will be recorded as a credit, with a negative sign, in the U.S. balance of paymentsWill be recorded as a credit, with a positive sign, in the U.S. balance of paymentsa)b)c)d) Answer d 3 Generally speaking

4、, any transaction that results in a payment to foreignersWill be recorded as a debit, with a negative sign, in the U.S. balance of payments Will be recorded as a debit, with a positive sign, in the U.S. balance of payments Will be recorded as a credit, with a negative sign, in the U.S. balance of pa

5、ymentsWill be recorded as a credit, with a positive sign, in the U.S. balance of paymentse)f)g)e) Answer a) 4 Suppose the McDonalds Corporation imports 100 tons of Canadian beef, paying for it by transferring the funds to a New York bank account kept by the Canadian Beef Conglomerate.Payment by McDo

6、nalds will be recorded as a debitThe deposit of the funds by the seller will be recorded as a debitPayment by McDonalds will be recorded as a creditThe deposit of the funds by the buyer will be crediti)j)k)l)Answer: a5 Since the balance of payments is presented as a system of double-entry bookkeepin

7、g,Every credit in the account is balanced by a matching debit Every debit in the account is balanced by a matching credit a) and b) are both trueNone of the abovea)b)c)d)Answer c)6 A country s international transactions can be grouped into the following three main types:a) current account, medium te

8、rm account, and long term capital accountAnswer:b) c) d) ccurrent account, long term capital account, and official reserve account current account, capital account, and official reserve account capital account, official reserve account, trade accountAnswer:Invisible trade refers to: a) b) c) d) cser

9、vices that avoid tax payments underground economy legal, consulting, and engineering services tourist expenditures, only8 The current account is divided into four finer categories: a) b) c) d)Answer: bMerchandise trade, services, income, and statistical discrepancy.Merchandise trade, services, incom

10、e, and unilateral transfersMerchandise trade, services, portfolio investment, and unilateral transfers Merchandise trade, services, factor income, and direct investment9 Factor ia)b)c)d) Answer: aincomeConsists largely of interest, dividends, and other income on foreign investments.Is a theoretical

11、construct of the factors of production, land, labor, capital, and entrepreneurial ability.Is generally a very minor part of national income accounting, smaller than the statistical discrepancy.None of the aboveUSE THEFOLLOWINGINFORMA TION TO ANSWER THE NEXT TWO10QUESTIONS The entries in thecurrent a

12、ccount ” and the “ capital account” , combined together,canbe outlined (in alphabetic order) as:(i) - direct investment(ii) - factor income(iii) - merchandise(iv) - official transfer(v)- other capital(vi)- portfolio investment (vii) - private transfer (viii) - services11Current account includes(i),

13、(ii), and (iii) (ii), (iii), and (vii) (iv), (v), and (vii)(i), (v), and (vi)a)b)c)d) Answer: b 12 Capital account includesa) (i), (ii), and (iii)b) (ii), (iii), and (vii)c) (iv), (v), and (vii)d) (i), (v), and (vi) Answer: d 13 The difference between Foreign Direct Investment and Portfolio Investme

14、nt is that:Portfolio Investment mostly represents the sale and purchase of foreign financial assets such as stocks and bondsthat do not involve a transfer of control .a)b)c)d) Answer: aForeign Direct Investment mostly represents the sale and purchase of foreign financial assets such as stocks wherea

15、s Portfolio Investment mostly involves the sales and purchase of foreign bonds.Foreign direct investment is about buying land and building factories, whereas portfolio investment is about buying stocks and bonds.All of the above14 In the latter half of the 1980s, with a strong yen, Japanese firms a)

16、 b)Faced difficulty exportingCould better afford to acquire U.S. assets that had become less expensive in terms of yen.Financed a sharp increase in Japanese FDI in the United States All of the abovec)d) Answer: d15 International portfolio investments have boomed in recent years, as a result of a) b)

17、 c) d)A depreciating U.S. dollar Increased gasoline and other commodity prices.The general relaxation of capital controls and regulation in many countries None of the aboveAnswer: c Answer: c)16 The capital account measures a)b)c)The sum of U.S. sales of assets to foreigners and U.S. purchases of fo

18、reign assets.The difference between U.S. sales of assets to foreigners and U.S. purchases of foreign assets.The difference between U.S. sales of manufactured goods to foreigners and U.S. purchases of foreign products.None of the aboved) Answer: b) page 64 17 When Honda, a Japanese auto maker, built

19、a factory in Ohio,a)b)c)d)It was engaged in foreign direct investment It was engaged in portfolio investmentIt was engaged in a cross-border acquisition None of the above.Answer: a) page 64. 18 The capital account may be divided into three categories:a) Cross-border mergers and acquisitions, portfol

20、io investment, and otherb)investmentDirect investment, portfolio investment, and Cross-border mergers and acquisitionsDirect investment, mergers and acquisitions, and other investmentDirect investment, portfolio investment, and other investmentc)d)Answer: d)19 When Nestl e , a Swiss firm, bought the

21、 American firm Carnation, it was engaged inforeign direct investment. If Nestle had only-cboonutrgohlltinagnnounmber ofshares of the firmNestI e would have been engaged in portfolio investmentNestI e would have been engaged in a croborder acquisitionIt would depend if they bought the shares from an

22、American or a Canadian None of the above.a)b)c)d) Answer: a)20 Foreign direct investment (FDI) occursa)b)c)d) Answer: dwhen an investor acquires a measure of control of a foreign businesswhen there is an acquisition, by a foreign entity in the U.S., of 10 percent or more of the voting shares of a bu

23、sinesswith sales and purchases of foreign stocks and bonds that do not involve a transfer of controla and b21 Statistical discrepancy, which by definition represents errors and omissionsa)b)c)Cannot be calculated directlyIs calculated by taking into account the balance -of-payments identity Probably

24、 has some elements that are honest mistakes, it can laundering and drugs.All of the abovet all be moneyd)Answer: d)22 The statistical discrepancy in the balance-of-payments accounts a)Arise since recordings of payments and receipts are done at different times, in different places, possibly using dif

25、ferent methods.Arise since some transactions (illegal transactions?) occurRepresents omitted and misrecorded transactions.All of the aboveb)c)d)Answer: d)23 Regarding the statistical discrepancy in the balance -of-payments accounts a)off the books ”b)c)d) Answer: d)There is some evidence that financ

26、ial transactions may be mainly responsible for the discrepancy.The sum of the balance on the capital account and the statistical discrepancy is very close to the balance of the current account in magnitude.It tends to be positive one year and negative in others, so ita) and b)s safe to ignore it24 W

27、hen a country must make a net payment to foreigners because of a balance-of-payments deficit, the central bank of the country a) b)Should do nothingShould run down its official reserve assets (e.g. gold, foreign exchanges, and SDRs)Should borrow anew from foreign central banks.b) or c) will workc) d

28、)Answer: d)25 Continued U.S. trade deficits coupled with foreigners currency holdings away from U.S. dollars a) b) desire to diversify theirc)d)Answer: dcould further diminish the position of the dollar as the dominant reserve currency could affect the value of U.S. dollar (e.g. through the currency

29、 diversification decisions of Asian central banks)Could lend steam to the emergence of the euro as a credible reserve currency All of the above26 Currently, international reserve assets are comprised of a) b)c)d)Answer: bgold, platinum, foreign exchanges, and special drawing rights (SDRs)gold, forei

30、gn exchanges, special drawing rights (SDRs), and reserve positions in the International Monetary Fund (IMF)gold, diamonds, foreign exchanges, and special drawing rights (SDRs)reserve positions in the International Monetary Fund (IMF), onlySpecial Drawing Rights (SDRs) at the IMFreserve positions in

31、the International Monetary Fund (IMF) Foreign currency held by a country s central bankNone of the above27 International reserve assets includea)b)c)d)Answer:foreign exchanges” . These areGoldForeign exchangesSpecial Drawing Rights (SDRs)Reserve positions in the International Monetary Fund (IMF)28 T

32、he most important international reserve asset, comprising 94 percent of the total reserve assets held by IMF member countries is a)b)c)d)Answer: b29 The vast majority of the foreign -exchange reserves held by central banks are denominated inLocal currenciesU.S. dollarsa)b)YenEuroc)d)Answer: b30 The

33、U.S. Trade Deficita)b)c)d)Answer:Is a capital account surplusIs a current account deficitIs both a capital account surplus and a current account deficit None of the above31 Over the last several years the U.S. has run persistent a)b)c)d)Answer:Balance-of-payments deficits Balance-of-payments surplus

34、es Current Account deficits Capital Account deficits c32 More important than he absolute size of a country disequilibrium a)b)c)d)-of -paymsenbtaslanceis the nature and cause of the disequilibriumis whether it is a trade surplus or deficitis whether the local government is mercantilist or not Nothin

35、g is more important than he absolute size of a country balance-of-payments disequilibriumAnswer:The Relationship between Balance of Payments and National Income Accounting For questions in this section, the notation isY = GNP = national incomeC = consumptionI = private investmentG = government spend

36、ingX = exportsM = imports33 National income, or Gross National Product is given by:GNP = Y = C + I + G + X + MGNP = Y = C + I + G + XGNP = I = C + Y + G + Xa)b)c)d)GNP = Y = C + I + X + MX - MX - MBCA 三 X - MX - Ma)b)c)d)Answer: b) 34 Which of the following is a true statement?BCA三BKA三BKA -BKA三Answe

37、r a)35 There is an intimate relationship between a country s BCA and how the countryfinances its domestic investment and pays for government expenditures. Thisrelationship is given by BCA= X - M = (S - I) + (T - G). Given this, which of thefollowing is aa)true statement?s domestic savings is insuffi

38、cient toIf (S - I) 0, it implies that a country finance domestic investment.b)If (T - G) 0, it implies that a country government spendingboth a) and b) are truenone of the abovec)d)Answer c)36 There is an intimate relationship between a countrys tax revenue is insufficient to finances BCA and how th

39、e countryfinances its domestic investment and pays for government expenditures. Thisrelationship is given by BCA= X - M = (S - I) + (T - G). Given this, which of thefollowing is a true statement?a)b)If (S - I) 0, it implies that a countryfinance domestic investment.If (T - G) 0, it implies that a co

40、untry government spendings domestic savings is insufficient tos tax revenue is insufficient to financec)when BCA is negative, it implies that government budget deficits an/or part of domestic investment are being finance with foreign -controlled capital all of the above are trued)Answer d)37 There is an intimate relationship between