国际金融英文版习题Chapter

1、. INTERNATIONAL FINANCE Assignment Problems 3 Name: Student#: I. Choose the correct answer for the following questions only ONE correct answer 2 credits for each question, total credits 2 x 25 = 50 1. Interbank quotations that include the United States dollars are conventionally given in , which sta

2、te the foreign currency price of one U.S. dollar, such as a bid price of SFr 0.85/$. A. indirect quote B. direct quote C. American quote D. European quote 2. The spot exchange rate published in financial newspapers is usually the . A. nominal exchange rate B. real exchange rate C. effective exchange

3、 rate D. equilibrium exchange rate 3. The foreign exchange refers to the . A. foreign bank notes and coins B. demand deposits in foreign banks C. foreign securities that can be easily cashed D. all of the above 精选文档 第 1 页,共 13 页. 4. The functions of the foreign exchange market come down to . A. conv

4、erting the currency of one country into the currency of another B. providing some insurance against the foreign exchange risk C. making the foreign exchange speculation easy D. Only A and B are true. 5. Which of the following is NOT true regarding the foreign exchange market. A. It is the place thro

5、ugh which people exchange one currency for another. B. The exchange rate nowadays is mainly determined by the market forces. C. Most foreign exchange transactions are physically completed in this market. D. All of the above are true. 6. The world largest foreign exchange markets are respectively. A.

6、 London, New York and Tokyo B. London, Paris and Frankfurt C. London, Hong Kong and Singapore D. London, Zurich and Bahrain 7. The foreign exchange market is NOT efficient because . A. monetary authorities dominate the foreign exchange market and everybody knows that by definition, central banks are

7、 inefficient B. commercial banks and other participants of the market do not compete with one another due to the fact that transaction takes place around the world and not in a single centralized location 精选文档 第 2 页,共 13 页. C. foreign exchange dealers have different prices such as bid and ask prices

8、 D. None of the reasons listed are correct because the foreign exchange market is an efficient market 8. earn a profit by a bid-ask spread on currencies they buy and sell. on the other hand, earn a profit by bringing together buyers and sellers of foreign exchanges and earning a commission on each s

9、ale and purchase. A. Foreign exchange brokers; foreign exchange dealers B. Foreign exchange dealers; foreign exchange brokers C. arbitragers; speculators D. commercial banks; central banks 9. Most foreign exchange transactions are through the U.S. dollars. If the transaction is expressed as the curr

10、encies per dollar, this is known as whereas are expressed as dollars per currency. A. direct quote; indirect quote B. indirect quote; direct quote C. European quote; American quote D. American quote, European quote 10. From the viewpoint of a Japanese investor, which of the following would be a dire

11、ct quote. . B. . 精选文档 第 3 页,共 13 页. C. ￥ 110/. D. . ￥ 11. Which of the following is true about the foreign exchange market. A. It is a global network of banks, brokers, and foreign exchange dealers connected by electronic communications system. B. The foreign exchange market is usually located in a

12、particular place. C. The foreign exchangerates are usually determined by the related monetary authorities. D. The main participants in this market are currency speculatorsfrom different countries. 12. The extent to which the income from individual transactions is affected by fluctuations in foreign

13、exchange values is considered to be . A. Translation exposure B. economic exposure C. transaction exposure D. accounting exposure 13. Which of the following exchange rates is adjusted for price changes. A. nominal exchange rate B. real exchange rate C. effective exchange rate D. equilibrium exchange

14、 rate 精选文档 第 4 页,共 13 页. 14. Suppose the exchange rate of the RMB versus U.S. dollar is ￥ 6.8523/$ n RMB were to undergo a 10% depreciation, the new exchange rate in terms of be: A. B. C. D. 15. At least in a U.S. MNCs financial accounting statement, if the value of the euro depreciatesrapidly again

15、stthat of the dollar over a year, this would reducethe dollar value of the euro profit made by the European subsidiary. This is a typical . A. transaction exposure B. translation exposure C. economic exposure D. operating exposure 16. A Japanese-based firm expects to receive pound-payment in 6 month

16、s. The company has a an . A. economic exposure B. accounting exposure C. long position in sterling D. short position in sterling 17 The exposure to foreign exchangerisk known as Translation Exposure may be defined as . A. changeinreportedowner s equityinconsolidatedfinancial statements causedby精选文档

17、第 5 页,共 13 页. a change in exchange rates B. the impact of settling outstanding obligations entered into before change in exchange rates but to be settled after change in exchange rates C. the changein expectedfuture cashflows arisingfrom an unexpectedchangein exchange rates D. All of the above 18 Wh

18、en a firm deals with foreign trade or investment, it usually has foreignexchange risk exposure. So if an American firm expects to receive a dollar-payment from a Chinese company in the next 30 days, the U.S. firm has the possible . A. economic exposure B. transaction exposure C. translation exposure

19、 D. none of the above 19. In order to avoid the possible loss because of the exchange rate fluctuations, a firm that has a position in foreign exchanges can that position in the forward market. A. short; sell B. long; sell C. long; buy D. none of the above 20. A forward contract to deliver Japanesey

20、ens for Swissfrancs could be described 精选文档 第 6 页,共 13 页. either as or , A. selling yens forward; buying francs forward B. buying francs forward; buying yens forward C. selling yens forward; selling francs forward D. selling francs forward; buying yens forward SFr/$ 21. Dollars are trading at S0 =SF

21、r0.7465/$ in the spot market. The 90-dayforward SFr/$ rate is F1 =SFr0.7432/$. So the forward on the dollar in basis points is : A. discount, B. discount, 33 C. premium, D. premium, 33 22. If the spot rate is /. , 3-monthforward rate is6./ is NOT true. A. euro is at forward premium by 100 points. B.

22、 dollar is at forward discount by 100 points. C. dollar is at forward discount by 55 points. D. euro is at forward premium by 2.96% p.a. , which of the following 23. If the spot C$/$ rate is 1.0305/15, forward dollar is 25/30 premium, the outright forward quote in American term should be . A. 精选文档 第

23、 7 页,共 13 页. B. C. 24. If the spot C$/$ rate is 1.0305/15, forward dollar is 25/30 premium, the $/C$ forward quote in terms of points should be . A. 30/25 B. 25/30 C. 23/28 D. 28/23 25. The current U.S. dollar exchange rate is￥85/$. If the 90-day forward dollar rate is ￥90/$, then the yen is selling

24、 at a per annum of . A. premium; 5.88% B. discount; 5.56% C. premium; 23.52% D. discount; 22.23% II. Problems Questions1through10arebasedon the informationpresentedinTable 3.12. credits for each question, total credits 2 x 10 = 20 Table Country Exchange rate Exchange rate CPI Volume of Volume of 202

25、2 2022 2022 imports from U.S. 精选文档 第 8 页,共 13 页. Germany . 0.75/$ . 0.70/$ $200m $350m MexicoMex$11.8/$ Mex$12.20/$ $120m $240m U.S. 1. The real exchange rate of the dollar against the euro in 2022 was 2. The real exchange rate of the dollar against the peso in 2022 was . . 3. The dollar was against

26、 the euro in nominal term by . A. appreciated; 6.67% B. depreciated; 6.67% C. appreciated; 7.14% D depreciated; 7.14% 4. The Mexican peso was against the dollar in nominal term by . A. appreciated; 3.39% B. depreciated; 3.39% C. appreciated; 3.28% D. depreciated; 3.28% 5. The volume of the German fo

27、reign trade with the U.S. was . 6. The volume of the Mexican foreign trade with the U.S. was . 7. Assume the U.S. trades only with the Germany and Mexico. Now if we want to calculate the dollar effective exchange rate in 2022 against a basket of currencies of euro 精选文档 第 9 页,共 13 页. and Mexican peso

28、, the weight assigned to the euro should be . 8. The weight assigned to the peso should be . 9. Assumethe 2022 is the baseyear. The dollar effective exchangerate in 2022 was . 10. Was the dollar generally stronger or weaker in 2022 according to your calculation. 11. The following exchange rates are

29、available to you. Fuji Bank ￥80.00/$ United Bank of Switzerland SFr0.8900/$ Deutsche Bank ￥ Assume you have an initial SFr10 million. Can you make a profit via triangular arbitrage. If so, show steps andcalculate the amount of profit inSwiss fran8csc.redits 12. If the dollar appreciates 1000% agains

30、t the ruble, by what percentage does the ruble depreciateagainst the dollar5. credits 精选文档 第 10 页,共 13 页. 13. As a percentage of an arbitrary starting amount, about how large would transactions costs have to be to makearbitragebetween the exchange rate Ss Fr/$S= SFr1.7223/$, S $/￥ ￥/SFr = ￥, and S =

31、 ￥unprofitable. Explain.7 credits 14. You are given the following exchange rates: ￥ /A$ S /A$ S = 67.05 ￥ / Calculate the bid and ask rate of S : 5 credits 15.Suppose the spot quotationon the Swiss franc CHF inNew York is442 68. Compute the percentagebid-askspreadson the CHF/EUR quote5. credits Answers to Assignment P