国际金融英文版课后答案

International Finance 国际金融

Notes to the answers:

1、All the terms can be found in the text.

2、The discussions can be attained by reading the original text.

Chapter 1

Answers:

II. T T F F F T T

III. 1. reserve currency 2. appreciate 3. was pegged to 4. deficit 5. fixed exchange rates 6. floating exchange rates 7. depreciate 8. market forces

IV. 1. Confidence in the ability of the U.S. to redeem dollars for gold began to fall as potential claims against the dollar increased and U.S. gold reserves fell.

2.Under the fixed exchange rate system, the value of the dollar was tied to gold through its

convertibility in to gold at the U.S. Treasury, and other nations’ currencies were tied to the dollar by the maintenance of a fixed rate of exchange.

3.IMF has adjusted its role in the exchange rate system in view of the development of the

situation.

4.After the collapse of the Bretton Woods System, the task of “rigorous monitoring”the

exchange rate policy of member countries fell on the shoulder of IMF.

5.Under normal conditions the stabilizing operations were sufficient to contain short-run

fluctuations in a currency’s price within the required bounds of 1% of par value and thereby maintain a system of fixed exchange rates.

Chapter 2

Answers:

I. liquid, turnover, due to, hedge, cross trading, electronic broking, outright forwards,

Over-the-counter, futures and options, derivatives, remainder.

II.. 1. The fundamental changes occurred in post-war world economy. The international flow of commodities, capital and labor is intensifying, thus leading to integration of international markets.

1.Often referred to as “financial institutions with a soul”, credit unions are member-owned

cooperatives that offer checking accounts, savings accounts, credit cards, and consumer loans.

2.If you think the price of gold will rise, you can buy a most simple kind of financial derivative

which is called “futures”. If by that time the price really goes up, then you make a gain. But if you make a wrong guess and the price declines, then you suffer a loss.

3.Financial derivatives are financial commodities deriving from such spot market products as

interest rate or bond, foreign exchange or foreign exchange rate and stock or stock indexes.

There are mainly three types of derivatives: futures, options and swaps, each of which involves a mix of financial contracts.

panies and investment funds are using basic currency futures and currency options, ones

that are regarded as traditional hedging products for investors who want to protect their international assets from sharp gains and declines in currency prices.

Chapter 3

Answers：

II. 1. deposit accounts 2. securitization 3. Deregulation 4. consolidation 5. portfolio 6. thrift institutions 7. listing 8. liquidity 9. banking supervision 10. Credit risk

III. 1. Depository institutions 2. commercial banks 3. credit analysis 4. working capital 5. consolidation 6. financing 7. moral hazard 8. Bank supervision and regulation 9. Credit risk 10. Liquidity risk

IV. 1. If a bank’s base rate was below money market rates, a customer could borrow from a bank and lend these funds to the money market, thus making a profit on the deal.

2.Financing of international trade is one of the basic functions of a commercial bank. Not only

does it father deposits (demand, time and savings accounts), but it also grants loans.

3.If you have a credit card, you buy a car, eat a dinner, take a trip,a nd even get a haircut by

charging the cost to your account.

4.As the central bank and under the leadership of the State Council, the People’s Bank of

China will formulate and implement monetary policies, execute supervision and control power over the banking industry.

5.One of major function of the central bank is the supervision of the clearing mechanism. A

reliable clearing mechanism which can settle inter-bank transaction with high efficiency is crucial to a well-operated financial system.