国际金融选择

1、第一章 1.If a nations domestic savings equals 6 and a nations domestic investment equals 10, then the nation is experiencing: A. a net capital outflow. B a net capital inflow. C. no net capital inflow or outflow. D. a current account surplus. 2. If domestic investment is greater than domestic saving, A

2、. expenditures equal domestic income and net exports equal zero.B. expenditures are greater than domestic income and net exports are negative.C. expenditures are less than domestic income and net exports are positive.D. expenditures are greater than domestic income and net exports are positive zero.

3、 3. A current account deficit in the U.S. is:A. necessarily bad because it represents a lack of domestic saving.B. necessarily good because it represents foreign savings in the U.S.C. necessarily bad because it undermines the U.S.s ability to experience economic growth. D.is neither good nor bad. 4.

4、The balance of payments system A.is another method for calculating GDP. B.insures that the net exports are always equal to zero. C.measures the total value of a domestic economys transactions with the rest of the world. D.attempts to limit the fluctuation in international exchange rates. 5.The balan

5、ce on merchandise trade is a component of A.the current account. B.the capital account. C.foreign direct investment. D.portfolio investment. 6.A debit entry in the balance of payments accounts represents A.a transaction that includes a payment from abroad a domestic resident. B.a transaction that in

6、cludes a payment abroad by a domestic resident. C.a decrease in the current account deficit. D.an increase in the capital account surplus. 7.Which of the following transactions are not included in the current account? A.Exports of manufactured goods. B.Imports of manufactured goods. C.Payments of in

7、terest and dividends on foreign assets held by a domestic U.S. resident. D.The purchase of foreign assets by a domestic U.S. resident. 8.When a country faces a current account deficit, it also faces: A. a services trade deficit. B. a capital account deficit. C. a capital account surplus. D. a mercha

8、ndise trade deficit. 9.In terms of balance of payments accounting, which of the following would be recorded as a debit entry? A. Exports of merchandise. B. Exports of services. C. A foreigners purchase of a U.S. Treasure bond. D. An increase in a U.S. citizens account at a foreign bank. 10.Suppose a

9、n American tourist travels to Mexico, and uses U.S. dollars to purchase a hotel room in Mexico City. This transaction is recorded as a A. credit in the current account and debit in the capital account. B. debit in the capital account and a credit in the current account. C.credit in the capital accou

10、nt and debit in the current account. D.credit in the capital account and debit in the capital account. 11.The United States is currently a net debtor nation. This necessarily implies that the A.federal government owes money to foreign investors. B.value of U.S. held assets abroad is lower than the v

11、alue of foreign held assets in the U.S. C.value of the U.S. dollar is less than the average value of foreign currencies. D.U.S. is running a deficit in manufactured goods trade. 12.After accounting for statistical discrepancies, a capital account A. surplus will always imply a current account surplu

12、s. B. surplus will always imply a current account deficit. C. surplus will always exceed the associated current account surplus. D. deficit will always exceed the associated current account surplus. 13.Foreign direct investment is a component of A.portfolio investment. B.the current account. C.total

13、 trade in services. D.the capital account. 14.In order for the purchase of stocks to be categorized as foreign direct investment, it must represent at least _ percent of the foreign entitys outstanding stockA. 1 B. 10 C. 25 D. 40 15.Purchases of stock that are too small too be considered foreign dir

14、ect investment are classified as A. depreciation. B. investment spending. C. portfolio investment. D. capital investment. 第二章1.For which of the following sets of exchange rates has the cross rate been correctly calculated? A. 1 = 2 Swiss francs; $1.50 = 1; $1 = 0.75 Swiss francs B. 200 = $1.00; 1 ri

15、nggit = $0.15; 20 ringgit = 1 C. 1 = 1.5 euro; 3 Swiss francs = 2 euros; 2.25 Swiss francs = 1 D. 100 = $1.00; 1 ringgit = $0.15; 20 ringgit = 12.Suppose the exchange rate between the U.S. dollar and the Canadian dollar is 1.37 (C$/$), while the exchange rate for the British pound is 0.66 (/$). What

16、 is the cross rate of Canadian dollars to the British pound (C$/)? A. 2.08 B. 1.37 C. 0.66 D. 0.483.An American tourist is planning to visit Mexico. The exchange rate at which the tourist can buy pesos in a retail bank is the: A. bid price. B. ask price. C. forward rate. D. cross rate.4.Suppose the

17、bid price of British pounds is $1.49 U.S., and the ask price is $1.51 U.S. What is the bid ask margin? A. 0.02% B. 0.99% C. 1.01% D. 1.32%5.Which of the following exchange rates is adjusted for price changes? A. Nominal exchange rate. B. Real exchange rate. C. Effective exchange rate. D. Forward exc

18、hange rate.6. The table below reports the movements of prices and exchange rates for the U.S. and Indonesia over a years time.（B）7.The effective exchange rate is A. the exchange rate facing large banks and other high-volume traders. B. the exchange rate facing retail customers. C. the nominal exchan

19、ge rate adjusted for inflation. D. a measure of the weighted-average value of a currency relative to a selected group of countries.8. The Special Drawing Right (SDR) is a A. means by which banks offer their best clients preferential loan rates. B. preliminary form of the proposed common currency in

20、Europe. C. composite currency created by the International Monetary Fund. D. type of bank account used by currency traders.9. If U.S. demand for German products increases at the same time as German demand for U.S. products rises, what is the effect on the U.S. dollar to euro exchange rate? A. The U.

21、S. dollar will appreciate relative to the euro. B. The U.S. dollar will depreciate relative to the euro. C. The U.S. dollar will not change relative to the euro. D. The U.S. dollar may appreciate, depreciate, or remain unchanged relative to the euro. 10.Which basket of goods would be most likely to

22、exhibit absolute purchasing power parity? A. The goods in the Consumer Price index. B. Specialized luxury goods, which are subject to different tax rates across countries. C. Locally produced goods, such as transportation services, which are not easily traded. D. Highly tradable commodities, such as

23、 wheat.11.The difference between relative and absolute purchasing power parity (PPP) isA. relative PPP includes a measure of the aggregate price level in each country, while PPP does not.B. empirical studies show that relative PPP holds in both the short and long run, while absolute PPP holds only i

24、n the short run.C. relative PPP relates interest rate differentials, while absolute PPP relates goods prices.D. relative PPP implies that exchange rate movements will offset changes in relative prices over time, while absolute PPP implies that exchange-rate adjusted prices will always be equal.12.If

25、 the price of a pair of shoes in the U.S. is $80, the price of the same pair of shoes in Germany is 120, and the exchange rate is 1.5 $/, the euro: A.is correctly valued according to PPP. B.is overvalued according to PPP. C.is undervalued according to PPP. D.correctly valued according to relative PP

26、P.13.Assume that PPP holds in the long run. If the price of a tradable good is $20 in the U.S. and 100 pesos in Mexico and the exchange rate is 7 pesos/$, which of the following changes might we expect in the future? A. an increase in the price of the good in the U.S. B a decrease in the price of th

27、e good in Mexico. C. an appreciation of the peso in nominal terms. D. a depreciation of the peso in nominal terms.第三章1.The principle function of the International Monetary Fund was originally to A.lend to member nations experiencing a shortage of foreign exchange reserves. B.finance postwar reconstr

28、uction, particularly in Europe and Japan. C.reduce trade barriers and settle disputes among countries relating to currency negotiations. D.act as a supranational regulatory agency for domestic central banks.The gold standard was in place for most major economics of the world during the period A. fro

29、m the beginning of the Great Depression until World War II. B. from 1973 until the present. C. from the mid-1870s until World War I. D. since the end of World War II.3.Under the gold standard, if the mint parity condition for the French franc was set at Ffr107.1 per ounce of gold, and the German mar

30、k was set at DM88.7 per ounce of gold, then it is possible to compute the exchange rate between the German mark and the French franc (DM/f) as approximately A. 0.83. B. 1.21. C. 9490.9 D. It is not possible to compute the exchange rate between the mark and the franc with these values, because these

31、values are relative to the price of gold.4.Under the Bretton Woods system, most of the major currencies of the system, other than the U.S. dollar, A. pegged their values against the value of an ounce of gold. B. pegged their values against the value of the dollar. C. allowed their currencies to floa

32、t. D. pegged their values against the value of the Euro.5.In the Plaza Agreement of September, 1985, the Group of Five or G5 countries announced that they believed that A. the G5 needed to be expanded to include an additional five major industrialized countries to make up what is now referred to as

33、the G10. B. the Bretton Woods system would no longer be sustainable. C. it was necessary to float the dollar relative to gold. D. the exchange value of the dollar was too strong and that they would coordinate their central bank interventions in order to drive down the value of the dollar.6.An exampl

34、e of a country that maintained a crawling-peg exchange-rate system during the early 2000s is A. the United States. B. Canada. C. France. D. Nicaragua.7. A currency board is an A.exchange market in which the major currencies of the world are exchanged on the open market among private banks at prevail

35、ing rates. B.independent monetary agency that substitutes for a central bank by pegging the growth of the domestic money stock to the foreign-exchange holdings of the board. C.independent monetary agency which is responsible for setting bank reserve requirements for the domestic currency. D.exchange

36、 market in which the notes and bills issued by the domestic government are traded on the open market among private banks.8.Which of the following arrangements places the greatest restriction on policymakers and requires the greatest sacrifice of policy autonomy? A. a free float. B. a currency-basket

37、 peg. C. dollarization. D. a currency board.9.If the Chinese renminbi, whose unit of currency is the yuan, is revalued relative to the U.S. dollar, then A. for each yuan, one can expect to buy fewer dollars. B. for each yuan, one can expect to buy more dollars. C. the exchange rate between the renmi

38、nbi and the dollar will remain constant. D. it is impossible to tell what will happen to the exchange rate or the number of dollars that one can buy with each yuan, since this depends on the supply and the demand for the yuan relative to the dollar.10. Currency basket pegs usually involve pegging th

39、e domestic currency to A. each of the major currencies of the world. B. the relative price of a chosen basket of consumer goods. C. a weighted average of only a small selected number of different currencies. D.within an upper and lower limit of a band relative to either the U.S. dollar or the Japane

40、se yen.11. A dirty float exchange rate system refers to A. an exchange rate system wherein policymakers allows the value of the domestic currency to be determine only by the forces of supply and demand. B. an exchange rate system whereby each of the members of the system peg their currency against o

41、ne of the major currencies, such as the U.S. dollar, which is in turn pegged against a commodity, such as gold. C. an exchange rate arrangement in which the domestic currency is primarily managed by the central bank of a foreign country, which is typically the major trading partner. D. an exchange r

42、ate arrangement in which a nation allows the international value of its currency to be primarily determined by market forces, but intervenes occasionally to stabilize its currency.12.Which of the following did not contribute to the eventual collapse of the Bretton Woods system? A. Increased federal

43、spending for social programs termed the Great Society under the Johnson administration. B. Heightened U.S. involvement in Vietnam. C. The conditions set forth in the Louvre Accord. D. U.S. balance of payments deficits with Germany and Japan.13.Which of the following is an example of a commodity mone

44、y that has been used extensively? A.Credit cards. B.Demand deposits and certificates of deposit. C.Gold. D. The Euro.14.A key challenge to the exchange rate system of the leading industrialized countries in the 1970s came as a consequence of A. a rapid increase in the price of petroleum. B. the form

45、ation of the Bundesbank. C. the heightening of Cold War tensions. D. the establishment of many currency baskets worldwide.15.The IMF constitution was amended to allow member nations to determine their own exchange rate arrangements under the A. Smoot-Hawley Act. B. Jamaica Accord. C. Smithsonian Agr

46、eement. D. Treaty of Rome.16.The gold window for the U.S. dollar was closed by A. President Ronald Reagan. B. President James Carter. C. Federal Reserve Chairman Paul Volker. D. President Richard Nixon.17. An advantage of a flexible exchange rate system is that it A. can help a country overcome exte

47、rnal shocks such as an unusual inflow of capital from abroad. B. can reduce the volatility of nominal exchange rate over time. C. eliminates the need for the central bank to target interest rates. D. ensures a greater volume of trade in goods and services among member countries.18Which of the follow

48、ing is a principal function of the International Monetary Fund? A. To act as a forum for international monetary cooperation. B. To provide central banks with a range of financial services for managing their external reserves. C. To act as a lender of last resort for countries facing temporary extern

49、al balance of payments problems. D. To act as an agent or trustee which facilitates the implementation of various international financial agreements.第四章1.Your Canadian-based firm expects to receive a euro-payment in 30 days. Your firm is: A.short the Canadian dollar. B.long the Canadian dollar. C.sh

50、ort the euro. D.long the euro.2.Your Canadian-based firm expects to receive a euro-payment in 30 days. This is an example of: A.covered arbitrage. B.transaction exposure. C.translation exposure. D.risk premium. 3. The act of offsetting exposure to risk is known as A. dodging. B. hedging. C. speculat

51、ing. D. avoidance.4. A covered exposure is one A. that is backed by the government. B. in which exposure to foreign exchange risk is offset. C. that is established via foreign direct investment. D. that is impossible in most bond markets.5.A market in which contracts for a future delivery of a forei

52、gn currency are established is: A. the S&P 500. B. the spot exchange market. C. the forward exchange market. D. global capital market.6. A short position in a foreign currency implies that the investor A. will deliver the foreign currency in the future. B. will receive the foreign currency in the fu

53、ture. C. has an economic exposure. D. has a translation exposure.7.If the forward exchange rate, defined as the domestic currency price of the foreign currency, is greater than the spot exchange rate there is a: A. forward premium on the foreign currency. B. forward discount on the foreign currency.

54、 C. shortage of dollars. D. surplus of dollars.8. The forward premium has proved to be A. a stable predictor of the future spot rate. B. a near-perfect predictor of future spot rates. C. a biased predictor of future spot rates. D. of no help in predicting future spot rates.9. The existence of unexploited profit opportunities is referred to as A. the parity condition. B. equilibrium. C. interest rate parity. D. an arbitrage opportunity.10. Interest rate equalization across countries on similar financial instruments is called A. sterilization. B. optimization. C. interest rate parity. D.