国际金融英文版练习题-Chapter-1
国际金融英文版习题Chapter（精华版）
INTERNATIONAL FINANCEAssignment 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 state the foreign currency price of one U.S. dollar, such as a bid price of SFr 0.85/$.A. indirect quoteB. direct quoteC. American quoteD. European quote2. The spot exchange rate published in financial newspapers is usually the .A. nominal exchange rateB. real exchange rateC. effective exchange rateD. equilibrium exchange rate3. The foreign exchange refers to the .A. foreign bank notes and coinsB. demand deposits in foreign banksC. foreign securities that can be easily cashedD. all of the above4. The functions of the foreign exchange market come down to .A. converting the currency of one country into the currency of anotherB. providing some insurance against the foreign exchange riskC. making the foreign exchange speculation easyD. Only A and B are true.5. Which of the following is NOT true regarding the foreign exchange market.A. It is the place through 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. London, New York and TokyoB. London, Paris and FrankfurtC. London, Hong Kong and SingaporeD. London, Zurich and Bahrain7. 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 inefficientB. 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 locationC. foreign exchange dealers have different prices such as bid and ask pricesD. None of the reasons listed are correct because the foreign exchange market is an efficient market8. 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 sale and purchase.A. Foreign exchange brokers; foreign exchange dealersB. Foreign exchange dealers; foreign exchange brokersC. arbitragers; speculatorsD. commercial banks; central banks9. Most foreign exchange transactions are through the U.S. dollars. If the transaction is expressed as the currencies per dollar, this is known as whereas are expressed as dollars per currency.A. direct quote; indirect quoteB. indirect quote; direct quoteC. European quote; American quoteD. American quote, European quote10. From the viewpoint of a Japanese investor, which of the following would be a direct quote..B. .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 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 exchange values is considered to be .A. Translation exposureB. economic exposureC. transaction exposureD. accounting exposure13. Which of the following exchange rates is adjusted for price changes.A. nominal exchange rateB. real exchange rateC. effective exchange rateD. equilibrium exchange rate14. 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 ofbe:A. B. C. D.15. At least in a U.S. MNC’s financial accounting statement, if the value of the euro depreciatesrapidly againstthat of the dollar over a year, this would reducethe dollarvalue of the euro profit made by the European subsidiary. This is a typical .A. transaction exposureB. translation exposureC. economic exposureD. operating exposure16. A Japanese-based firm expects to receive pound-payment in 6 months. The companyhas a (an) .A. economic exposureB. accounting exposureC. long position in sterlingD. short position in sterling17 The exposure to foreign exchangerisk known as Translation Exposure may bedefined as .A. change in reported owne’r s equity in consolidated financial statements caused bya change in exchange ratesB. the impact of settling outstanding obligations entered into before change in exchange rates but to be settled after change in exchange ratesC. the changein expectedfuture cashflows arisingfrom an unexpectedchangein exchange ratesD. All of the above18 When 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 exposureB. transaction exposureC. translation exposureD. none of the above19. 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; sellB. long; sellC. long; buyD. none of the above20. A forward contract to deliver Japaneseyens for Swissfrancs could be describedeither as or ,A. selling yens forward; buying francs forwardB. buying francs forward; buying yens forwardC. selling yens forward; selling francs forwardD. selling francs forward; buying yens forwardSFr/$21. Dollars are trading at S0=SFr0.7465/$ in the spot market. The 90-dayforwardSFr/$rate is F1=SFr0.7432/$. So the forward on the dollar in basis points is :A. discount,B. discount, 33C. premium,D. premium, 3322. If the spot rate is /. , 3-month forward rate is6./, which of the following is NOT true.A. euro is at forward premium by 100 points.B. 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.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. –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. 30/25B. 25/30C. –(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 at a per annum of .A. premium; 5.88%B. discount; 5.56%C. premium; 23.52%D. discount; 22.23%II. ProblemsQuestions1through10are based on the information presented in Table 3.1(2.credits for each question, total credits 2 x 10 = 20)TableCountry Exchange rate(2021) Exchange rate CPI Volume of Volume ofimports from U.S.(2021) (2021)Germany Mexico U.S.. 0.75/$Mex$11.8/$. 0.70/$Mex$12.20/$$200m$120m$350m$240m1. The real exchange rate of the dollar against the euro in 2021 was .2. The real exchange rate of the dollar against the peso in 2021 was .3. The dollar was against the euro in nominal term by .A. appreciated; 6.67%B. depreciated; 6.67%C. appreciated; 7.14%D depreciated; 7.14%4. The Mexican peso was against the dollar in nominal term by.A. appreciated; 3.39%B. depreciated; 3.39%C. appreciated; 3.28%D. depreciated; 3.28%5. The volume of the German foreign trade with the U.S. was .6. The volume of the Mexican foreign trade with the U.S. was .7. Assume the U.S. trades only with the Germany and Mexico. Now if we want to calculate the dollar effective exchange rate in 2021 against a basket of currencies of euroand Mexican peso, the weight assigned to the euro should be .8. The weight assigned to the peso should be .9. Assumethe 2021 is the baseyear. The dollar effective exchangerate in 2021 was.10. Was the dollar generally stronger or weaker in 2021 according to your calculation.11. The following exchange rates are available to you.Fuji Bank ￥80.00/$United Bank of Switzerland SFr0.8900/$Deutsche Bank ￥Assume you have an initial SFr10 million. Can you make a profit via triangular arbitrage. If so, show steps and calculate the amount of profit in Swiss fra n8cs c.r e(dit s)12. If the dollar appreciates 1000% against the ruble, by what percentage does the ruble depreciate against the dolla(r5. credits)13. As a percentage of an arbitrary starting amount, about how large would transactions costs have to be to make arbitrage between the exchange rat e S s Fr/$S= SFr1.7223/$, S$/￥￥/SFr= ￥, and S = ￥unprofitable. Explain(.7 credits14. You are given the following exchange rates:￥/A$S = 67.05 –￡/A$S –￥/ ￡Calculate the bid and ask rate of S : (5 credits)15.Suppose the spot quotation on the Swiss franc (CHF) in New York is4–42–68. Compute the percentage bid-ask spreads on the CHF/EUR quo t(e5. credits)Answers to Assignment Problems (3)Part I1. D2. A3. D4. D5. D6. A7. D8. B9. C 10. C11. A 12. A 13. B 14. D 15. B16. C 17. A 18. D 19. B 20. A21. B 22. B 23. C 24. C 25. D Part II1. 0.70 x (105.3/102.5) = 0.7 x 1.0273 =2. 12.2 x (105.3/110.5) = 12.2 x .9529 =3. B (0.7 /.75)–1 = -6.67%4. D (1/12.2)/(1/11.8) –1 = -3.28%5. 5506. 3607. 550/910 = 60.44%8. 360/910 =9. (0.70/0.75)(60.44%) + (12.2/11.8)(39.56%) = .5641 + 0.4090 = .9731 = 97.31%10. weaker, because dollar depreciated by 2.69%.￥/$ $/SFr SFr/ ￥11. Since S S S = 0.946186< 1, there is an arbitrage opportunity.Steps: ①Buy ￥from Deutsche Bank, SFr10 million x =￥950million② m③ mProfit (ignoring transaction fees):–SFr10 = 0.56875 million = 568,75012. (x–1) = 1000%; 1/11 –1 = 90.9%13. S SFr/$ S$/ ￥S￥/SFr = SFr1.7223/$ x x￥￥F=rIf transaction costs exceed $0.0326 (3.26%), the arbitrage is unprofitable.￥/A$14. Given: S = –￡/A$S –￥/.(bid)￡/.(ask)15. Given: –52/SFr–68/SFrSo, S SRr/ . (bid)S SFr/ . (ask)Bid-ask margin = –1.424) / 1.4264 = 0.1683%。
国际金融英文版习题
Chapter1 balance of paymentsBalance of Payments Accounting1Balance of paymentsa)is defined as the statistical record of a country’sinternational transactions over a certain period of timepresented in the form of a double-entry bookkeepingb)provides detailed information concerning the demand and supplyof a country’s currencyc)can be used to evaluate the performance of a country ininternational economic competitiond)all of the aboveAnswer: d2Generally speaking, any transaction that results in a receipt from foreignersa)Will be recorded as a debit, with a negative sign, in the .balance of paymentsb)Will be recorded as a debit, with a positive sign, in the .balance of paymentsc)Will be recorded as a credit, with a negative sign, in the .balance of paymentsd)Will be recorded as a credit, with a positive sign, in the .balance of paymentsAnswer d3 Generally speaking, any transaction that results in a payment to foreignerse)Will be recorded as a debit, with a negative sign, in the .balance of paymentsf)Will be recorded as a debit, with a positive sign, in the .balance of paymentsg)Will be recorded as a credit, with a negative sign, in the .balance of paymentsh)Will be recorded as a credit, with a positive sign, in the .balance of paymentsAnswer a4 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.i)Payment 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 credit Answer: a5Since the balance of payments is presented as a system of double-entry bookkeeping,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 c6 A country’s international transactions can be grouped into thefollowing three main types:a)current account, medium term account, and long term capitalaccountb)current account, long term capital account, and officialreserve accountc)current account, capital account, and official reserveaccountd)capital account, official reserve account, trade account Answer: c7Invisible trade refers to:a)services that avoid tax paymentsb)underground economyc)legal, consulting, and engineering servicesd)tourist expenditures, onlyAnswer: c8The current account is divided into four finer categories:a)Merchandise trade, services, income, and statisticaldiscrepancy.b)Merchandise trade, services, income, and unilateraltransfersc)Merchandise trade, services, portfolio investment, andunilateral transfersd)Merchandise trade, services, factor income, and directinvestmentAnswer: b9Factor incomea)Consists largely of interest, dividends, and other incomeon foreign investments.b)Is a theoretical 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 entries in the “current account” and the “capital account”, combined together, can be outlined in alphabetic order as: i- direct v- other capitalinvestmentii- factor income iii- merchandise iv- official transfer vi- portfolio investmentvii- private transferviii- services11Current account includesa)i, ii, and iiib)ii, iii, and viic)iv, v, and viid)i, v, and viAnswer: b12Capital account includesa)i, ii, and iiib)ii, iii, and viic)iv, v, and viid)i, v, and viAnswer: d13The difference between Foreign Direct Investment and Portfolio Investment is that:a)Portfolio Investment mostly represents the sale and purchaseof foreign financial assets such as stocks and bonds that do not involve a transfer of control.b)Foreign Direct Investment mostly represents the sale andpurchase of foreign financial assets such as stocks whereas Portfolio Investment mostly involves the sales and purchase of foreign bonds.c)Foreign direct investment is about buying land and buildingfactories, whereas portfolio investment is about buying stocks and bonds.d)All of the aboveAnswer: a14In the latter half of the 1980s, with a strong yen, Japanese firmsa)Faced difficulty exportingb)Could better afford to acquire . assets that had become lessexpensive in terms of yen.c)Financed a sharp increase in Japanese FDI in the United Statesd)All of the aboveAnswer: d15International portfolio investments have boomed in recent years, as a result ofa)A depreciating . dollarb)Increased gasoline and other commodity prices.c)The general relaxation of capital controls and regulation inmany countriesd)None of the aboveAnswer: cAnswer: c16The capital account measuresa)The sum of . sales of assets to foreigners and . purchases offoreign assets.b)The difference between . sales of assets to foreigners and .purchases of foreign assets.c)The difference between . sales of manufactured goods toforeigners and . purchases of foreign products.d)None of the aboveAnswer: b page 6417When Honda, a Japanese auto maker, built 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 64.18The capital account may be divided into three categories:a)Cross-border mergers and acquisitions, portfolio investment,and other investmentb)Direct investment, portfolio investment, and Cross-bordermergers and acquisitionsc)Direct investment, mergers and acquisitions, and otherinvestmentd)Direct investment, portfolio investment, and other investment Answer: d19When Nestlé, a Swiss firm, bought the American firm Carn ation, it was engaged in foreign direct investment. If Nestlé had only boughta non-controlling number of shares of the firma)Nestlé would have been engaged in portfolio investmentb)Nestlé would have been engaged in a cross-border acquisitionc)It would depend if they bought the shares from an American ora Canadiand)None of the above.Answer: a20Foreign 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 ., of10 percent or more of the voting shares of a businessc)with sales and purchases of foreign stocks and bonds that donot involve a transfer of controld)a and bAnswer: d21Statistical discrepancy, which by definition represents errors and omissionsa)Cannot be calculated directlyb)Is calculated by taking into account the balance-of-paymentsidentityc)Probably has some elements that are honest mistakes, it can’tall be money laundering and drugs.d)All of the aboveAnswer: d22The statistical discrepancy in the balance-of-payments accountsa)Arise since recordings of payments and receipts are done atdifferent times, in different places, possibly using different methods.b)Arise since some transactions illegal transactions occur “offthe books”.c)Represents omitted and misrecorded transactions.d)All of the aboveAnswer: d23Regarding the statistical discrepancy in the balance-of-payments accountsa)There is some evidence that financial transactions may be mainlyresponsible for the discrepancy.b)The sum of the balance on the capital account and the statisticaldiscrepancy is very close to the balance of the current accountin magnitude.c)It tends to be positive one year and negative in others, so it’ssafe to ignore itd)a and bAnswer: d24When a country must make a net payment to foreigners because ofa balance-of-payments deficit, the central bank of the countrya)Should do nothingb)Should run down its official reserve assets . gold, foreignexchanges, and SDRsc)Should borrow anew from foreign central banks.d)b or c will workAnswer: d25Continued . trade deficits coupled with foreigners’ desire to diversify their currency holdings away from . dollarsa)could further diminish the position of the dollar as thedominant reserve currencyb)could affect the value of . dollar . through the currencydiversification decisions of Asian central banksc)Could lend steam to the emergence of the euro as a crediblereserve currencyd)All of the aboveAnswer: d26Currently, international reserve assets are comprised ofa)gold, platinum, foreign exchanges, and special drawing rightsSDRsb)gold, foreign exchanges, special drawing rights SDRs, andreserve positions in the International Monetary Fund IMFc)gold, diamonds, foreign exchanges, and special drawing rightsSDRsd)reserve positions in the International Monetary Fund IMF, only Answer: b27International reserve assets include “foreign exchanges”. These area)Special Drawing Rights SDRs at the IMFb)reserve positions in the International Monetary Fund IMFc)Foreign currency held by a country’s central bankd)None of the aboveAnswer: c28The most important international reserve asset, comprising 94 percent of the total reserve assets held by IMF member countriesisa)Goldb)Foreign exchangesc)Special Drawing Rights SDRsd)Reserve positions in the International Monetary Fund IMF Answer: b29The vast majority of the foreign-exchange reserves held by central banks are denominated ina)Local currenciesb). dollarsc)Yend)EuroAnswer: b30The . 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: c31Over the last several years the . has run persistenta)Balance-of-payments deficitsb)Balance-of-payments surplusesc)Current Account deficitsd)Capital Account deficitsAnswer: c32More 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 whether the local government is mercantilist or notd)Nothi ng is more important than he absolute size of a country’sbalance-of-payments disequilibriumAnswer: aThe Relationship between Balance of Payments and National Income Accounting For questions in this section, the notation isY = GNP = national incomeC = consumptionI = private investmentG = government spendingX = exportsM = imports33National income, or Gross National Product is given by:a)GNP = Y = C + I + G + X + Mb)GNP = Y = C + I + G + X – Mc)GNP = I = C + Y + G + X – Md)GNP = Y = C + I + X + M – GAnswer: b34Which of the following is a true statementa)BCA ≡ X – Mb)BKA ≡ X – Mc)BKA –BCA ≡ X – Md)BKA ≡ X – MAnswer a35There is an intimate relationship between a country’s BCA and how the country finances its domestic investment and pays forgovernment expendi tures. This relationship is given by BCA ≡ X –M ≡ S – I + T – G. Given this, which of the following is a true statementa)If S –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)both a and b are trued)none of the aboveAnswer c36There is an intimate relationship between a country’s BCA and howthe country finances its domestic investment and pays forgovernment expenditures. This relationship is given by BCA ≡ X –M ≡ S – I + T – G. Given this, which of the following is a true statementa)If S –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 BCA is negative, it implies that government budget deficitsan/or part of domestic investment are being finance withforeign-controlled capitald)all of the above are trueAnswer d37There is an intimate relationship between a country’s BCA and how the country finances its domestic investment and pays forgovernment expenditures. This relationship is given by BCA ≡ X –M ≡ S –I + T –G. Given this, in order for a country to reducea BCA deficit, which of the following must occura)For a given level of S and I, the government budget deficit T– G must be reducedb)For a given level of I and T – G, S must be increasedc)For a given level of S and T – G, I must falld)All of the above would work to reduce a BCA deficitAnswer dExplain how each of the following transactions will be classified and recorded in the debit and credit of the . balance of payments:1 A Japanese insurance company purchases . Treasury bonds and paysout of its bank account kept in New York City.2 A . citizen consumes a meal at a restaurant in Paris and pays withher American Express card.3 A Indian immigrant living in Los Angeles sends a check drawn onhis . bank account as a gift to his parents living in Bombay.4 A . computer programmer is hired by a British company for consulting andgets paid from the . bank account maintained by the British company.In contrast to the ., Japan has realized continuous current account surpluses. What could be the main causes for these surpluses Is it desirable to have continuous current account surpluses。
金融市场学双语题库及答案(第一章)米什金金融市场与机构
Financial Markets and Institutions^ 8e (Mishkin)Chapter 1 Why Study Financial Markets and Institutions?1.1 Multiple Choice1)Financial markets and institutionsA)involve the movement of huge quantities of money.B)affect the profits of businesses.C)affect the types of goods and seivices produced ill an economy.D)do all of the above.E)do only A and B of the above.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition2)Financial market activities affectA)personal wealth.B)spending decisions by individuals and business firms.C)the economy's location in the business cycle.D)all of the above.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition3)Markets in wliich funds are tiansfeired from those who have excess funds available to those who have a shortage of available funds are calledA)commodity markets.B)funds markets.C)derivative exchange markets.D)financial markets.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition4)The price paid for the rental of bonowed funds (usually expressed as a percentage of the rental of $100 per year) is conmionly referred to as theA)inflation rate.B)exchange late.C)interest rate.D)aggiegate price level.Answer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition5)The bond maikets are impoitant becauseA)they are easily the most widely followed financial markets in the United States.B)they are the maikets where interest rates are deteimined.C)they are the markets where foreign exchange rates are determined.D)all of the above.Answer: BTopic: Chapter 1.1 Why Study Financial MaiketsQuestion Status: Previous Edition6)Interest rates are impoitant to financial institutions since an interest rate uicrease the cost of acquiring funds and the income fiom assets.A)decreases; decreasesB)increases; increasesC)decreases; increasesD)increases; decreasesAnswer: BTopic: Chapter 1.1 Why Study Financial MaiketsQuestion Status: Previous Edition7)Typically, increasing interest ratesA)discourages individuals fiom saving.B)discourages corporate investments.C)encourages coipoiate expansion.D)encourages coipoiate borrowing.E)none of the above.Answer: BTopic: Chapter 1.1 Why Study Financial MaiketsQuestion Status: Previous Edition8)Compared to interest rates on long-tenn U.S. govenmient bonds, interest rates onfluctuate more and are lower on average.A)medium-quality coipoiate bondsB)low-quality corporate bondsC)high-quality coipoiate bondsD)tluee-month Treasuiy billsE)none of the aboveAnswer: DTopic: Chapter 1.1 Why Study Financial MaiketsQuestion Status: Previous Edition9)Compared to interest rates on long-tenn U.S. govenmient bonds, interest rates on tluee-month Tieasuiy bills fluctuate and are on average.A)moie; lowerB)less; lowerC)moie; liigherD)less; higherAnswer: ATopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition10)The stock market is important becauseA)it is where interest rates are determined.B)it is the most widely followed financial market in the United States.C)it is where foreign exchange rates are deteimined.D)all of the above.Answer: BTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition11)Stock prices since the 1980s have beenA)relatively stable, trending upward at a steady pace.B)relatively stable, tiending downward at a moderate rate.C)extremely volatile.D)unstable, trending downward at a moderate late.Answer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition12)The largest one-day drop in the liistoiy of the Ainei ican stock markets occuii ed inA)1929.B)1987.C)2000.D)2001.Answer: BTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition13) A declining stock market index due to lower share pricesA)reduces people's wealth and as a result may reduce theii willingness to spend.B)increases people's wealth and as a result may increase their willingness to spend.C)decreases the amount of fiinds that business firms can raise by selling newly issued stock.D)both A and C of the above.E)both B and C of the above.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition14)Changes in stock pricesA)affect people's wealth and their willingness to spend.B)affect films' decisions to sell stock to finance investment spending.C)are characterized by considerable fluctuations.D)all of the above.E)only A and B of the above.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition15)(I) Debt markets are often referred to generically as the bond market.(II) A bond is a security that is a claim on the earnings and assets of a coiporation.A)(I) is true, (II) false.B)(I) is false, (II) true.C)Both are true.D)Both are false.Answer: ATopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition16)(I) A bond is a debt security that promises to make paymen's periodically fbr a specified peiiod of time. (II) A stock is a security that is a claim on the earnings and assets of a corporation.A)(I) is true, (II) false.B)(I) is false, (II) true.C)Both are true.D)Both are false.Answer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition17)The price of one countiy's currency in terms of another's is calledA)the foreign exchange rate.B)the interest rate.C)the Dow Jones industrial average.D)none of the above.Answer: ATopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition18) A stronger dollar benefits and hurts .A)American businesses; American consumersB)American businesses; foreign businessesC)American consumers; American businessesD)foreign businesses; American consumersAnswer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition19) A weaker dollar benefits and hurts .A)American businesses; American consumersB)American businesses; foreign consumersC)American consumers; American businessesD)foreign businesses; American consumersAnswer: ATopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition20)From 1980 to early 1985 the dollar in value, thereby benefiting American.A)appreciated; businessesB)appreciated; consumeisC)depreciated; businessesD)depreciated; consumersAnswer: BTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition21)In general, from 2001 tluougli 2013, the dollar in value relative to major foreign cunencies.A)appreciatedB)depreciatedC)remained about the sameAnswer: BTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: New Question22)Money is defined asA)anything that is generally accepted in payment for goods and seivices or in the repayment of debt.B)bills of exchange.C) a riskless repositoiy of spending power.D)all of the above.E)only A and B of the above.Answer: ATopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition23)The organization responsible foi the conduct of monetary policy in the United States is theA)Compti oiler of the Currency.B)U.S. Tieasuiy.C)Federal Reserve System.D)Bureau of Monetaiy Affairs.Answer: CTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition24)The central bank of the United States isA)Citicoip.B)The Fed.C)Bank of America.D)The Tieasuiy.E)none of the above.Answer: BTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition25)Monetaiy policy is chiefly conceined withA)how much money businesses earn.B)the level of interest rates and the nation's money supply.C)how much money people pay in taxes.D)whether people have saved enough money fbr letiiement.Answer: BTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition26)Economists gioup commercial banks, savings and loan associations, credit unions, mutual funds, mutual savings banks, insurance companies, pension funds, and finance companies together under the heading financial intermediaiies. Financial intermediaiies A)act as middlemen, borrowing funds fiom those who have saved and lending these funds to others.B)produce notliing of value and are therefore a drain on society's resources.C)help piomote a more efficient and dynamic economy.D)do all of the above.E)do only A and C of the above.Answer: ETopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition27)Economists gioup commercial banks, savings and loan associations, credit unions, mutual funds, mutual savings banks, insurance companies, pension funds, and finance companies together under the heading financial intermediaiies. Financial intermediariesA)act as middlemen, borrowing funds fiom those who have saved and lending these funds to others.B)play an impoilant role in determining the quantity of money in the economy.C)help promote a more efficient and dynamic economy.D)do all of the above.E)do only A and C of the above.Answer: DTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition28)Banks are important to the study of money and the economy because theyA)provide a channel for linking those who want to save with those who want to invest.B)have been a source of financial innovation that is expanding the alternatives available to those wanting to invest theii money.C)are the only financial institution to play a role in determining tlie quantity of money in the economy.D)do all of the above.E)do only A and B of the above.Answer: ETopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition29)Banks, savings and loan associations, mutual savings banks, and credit unionsA)are no longer inipoitant players ill financial inteimediation.B)have been providing seivices only to small depositors since deregulation.C)have been adept at innovating in response to changes in the regulatoiy environment.D)all of the above.E)only A and C of the above.Answer: CTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition30)(I) Banks are financial inteimediaries that accept deposits and make loans.(II) The tenn "banks" includes firms such as commercial banks, savings and loan associations, mutual savings banks, credit unions, insurance companies, and pension funds.A)(I) is true, (II) false.B)(I) is false, (II) true.C)Both are true.D) Both are false.Answer: ATopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous EditionA)Black FridayB)Black MondayC)Blackout DayD)none of the aboveAnswer: BTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition32)The largest financial intennediaiies areA)insurance companies.B)finance companies.C)banks.D)all of the above.Answer: CTopic: Chapter 1.2 Why Study Financial ListitutionsQuestion Status: Previous Edition33)In recent yearsA)interest rates have remained constant.B)the success of financial institutions has reached levels unpiecedented since the Great Depiession.C)stock markets have crashed.D)all of the above.Answer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition34) A securityA)is a claim oi price of property that is subject to ownei sliip.B)promises that payments will be made peiiodically fbr a specified peiiod of time.C)is the price paid fbr the usage of funds.D)is a claim on the issuers future income.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous EditionA)BanksB)Insurance companiesC)Finance companiesD)All of the aboveAnswer: DTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition36)Monetaiy policy affectsA)interest rates.B)inflation.C)business cycles.D)all of the above.Answer: DTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition37) A rising stock market index due to higher share pricesA)incieases people's wealth and as a result may inciease their willingness to spend.B)increases the amount of funds that business films can raise by selling newly issued stock.C)decreases the amount of fiinds that business firms can raise by selling newly issued stock.D)both A and B of the above.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition38)From the peak of the high-tech bubble in 2000, the stock market by overby late 2002.A)collapsed; 75%B)rose; 35%C)collapsed; 30%D)rose; 50%Answer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition39)The Dow fell below 7,000 in 2009, only to stall a bull market inn, reaching new highs above in 2013.A)12,000B)10,000C)15,000D)19,000Answer: CTopic: Chapter 1.1 Why Study Financial Markets Question Status: New Question1.2 Tme/False1)Money is anything accepted by anyone as payment for sendees or goods.Answer: TRUETopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition2)Interest rates are determined in the bond markets.Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition3) A stock is a debt security that promises to make periodic payments fbr a specific period of time.Answer: FALSETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition4)Monetaiy policy affects interest rates but has little effect on inflation or business cycles. Answer: FALSETopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition5)The govenunent organization responsible fbr the conduct of monetaiy policy in the United States is the U.S. Treasury.Answer: FALSETopic: Chapter 1.2 Why Study Financial ListitutionsQuestion Status: Previous Edition6)Interest rates can be accurately described as the rental price of money.Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition7)Holding eveiytliiiig else constant, as the dollar weakens vacations abroad become less attractive.Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition8)In recent years, financial markets have become more stable and less risky. Answer: FALSETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition9)Financial innovation has provided moie options to both investors and borrowers. Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition10) A financial inteimediaiy bonows funds fiom people who have saved.Answer: TRUETopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition11)Holding everything else constant, as the dollar stiengtliens fbreigiieis will buy more U.S. exports.Answer: FALSETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition12)In a bull market stock prices are rising, on average.Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition13)Financial institutions are among the largest employers in the countiy and frequently pay very high salaries.Answer: TRUETopic: Chapter 1.3 Applied Managerial PerspectiveQuestion Status: Previous Edition14)Different interest rates have a tendency to move in unison.Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition15)Financial markets are what makes financial institutions work.Answer: FALSETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition16)In recent years, financial markets have become more risky. However, only a limited number of tools (such as derivatives) are available to assist in managing this risk. Answer: FALSETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition17)Although the internet lias changed many aspects of our lives, it hasn't proven very useful for collecting and/or analyzing financial and economic data.Answer: FALSETopic: Chapter 1.4 How We Study Financial Markets and Institutions Question Status: New Question1.3 Essay1)Have interest rates been more or less volatile in recent years? Why?Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition2)Why should consumers be concerned with movements in fbreign exchange rates? Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition3)How does the value of the dollar affect the competitiveness of American businesses? Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition4)What is monetary policy and who is responsible fbr its implementation?Topic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition5)What are financial intermediaiies and what do they do?Topic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition6)What is money?Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition7)How does a bond differ fiom a stock?Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition8)Why is the stock market so important to individuals, films, and the economy? Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition9)What is the cential bank and what does it do?Topic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition10)If you are plamiing a vacation to Europe, do you prefer a strong dollar 01 weak dollar relative to the euio? Why?Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition11)How has the stock market perfoimed since 2000?Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: New Question。
《国际经济学》练习1
Chapter 1 An Introduction to International TradeMultiple-Choice Questions1) C ountries of the world differ in terms of theirA) g eographic size.B) p opulation size.C) s tandards of living.D) A ll of the above.2) T he difference between a country's Gross National Product (GNP) and its Gross Domesticproduct (GDP) is thatA) G NP refers to production within the nation while GDP refers to production by domesticfactors no matter where they are located.B) G NP is always bigger than GDP.C) G DP refers to production within the nation while GNP refers to production by domesticfactors no matter where they are located.D) T wo of the above are true.3) P er capita GNP is defined as a country's GNP divided by itsA) p opulation.B) l abor force.C) c apitalists.D) N one of the above.4) W hich of the following statements is false?A) R icher countries tend to be found in North America, Western Europe, and Japan.B) C ountries with large populations tend to be rich.C) G rowth of per capita GNP tends to be quite stable about 1.5-3 percent per year inindustrialized countries.D) O ver the past several decades, growth of per capita GNP tends to be higher on averagein industrialized countries than in low or middle-income countries.5) T he ratio of a country's exports to its total output (GNP or GDP)A) i s known as the index of openness.B) p rovides a rough measure of the importance of international trade to that economy.C) i f calculated for the United States would be quite low.D) A ll of the above.6) W hich of the following statements is false?A) B etween 1980 and 2000, the index of openness has risen for most countries.B) S ince 1950, international trade has been growing faster than the growth of world output.C) A country cannot be a leading world exporter without a high index of openness.D) T wo of the above are true.7) B arriers to tradeA) i nclude government policies such as tariffs and quotas.B) h ave been falling with technological improvements in transportation andcommunication.C) h ave risen since World War II as many countries have imposed higher tariffs.D) T wo of the above are true.8) W hich of the following is true?A) M uch of the trade of the European Union (EU) countries is with EU countries.B) I ndustrialized countries tend to trade relatively little and largely with developingcountries.C) D eveloping countries in Africa and South America tend to trade the most and largelywith themselves.D) A ll of the above are true.9) T he leading trading partner of the United States isA) C anada.B) J apan.C) G ermany.D) M exico.10) W hich of the following statements is true?A) C ountries tend to trade extensively with their neighbors.B) T he United States is an important trading partner for many countries.C) T he largest amount of international trade occurs between industrialized countries.D) A ll of the above are true.11) T he most commonly traded product (by value) in recent years has beenA) a utomobiles.B) w heat.C) t elevisions, stereos, and VCRs.D) s teel.12) T he United States tends to exportA) o nly a narrow range of products such as wheat.B) a wide set of products, primarily manufactured goods.C) v ery little.D) N one of the above.13) J apanese exports are heavily concentrated inA) a gricultural products such as rice.B) n atural resource products such as coal.C) m anufactured products including motor vehicles.D) B oth A and C.14) T he types of goods Japan exports and imports appear to be well explained byA) J apanese endowments of factors of production (e.g. land, labor, capital, naturalresources).B) h igh and rising Japanese tariffs.C) a dvertising and other sales promotion efforts.D) A ll of the above.15) I nternational tradeA) a ccounts for more than 90 percent of world economic activity.B) i s a relatively small (about 30 percent of world output) but growing part of worldeconomic activity.C) h as been growing at about the same rate as the world economy.D) B oth A and C.True or False Questions1) A country's GNP is always larger than its GDP.2) A country's index of openness can never exceed 100 in value.3) G rowth in per capita GNP in developing countries has tended to be much more variable inrecent years than per capita GNP growth rates in industrialized countries.4) I f a country is industrialized then prolonged periods of negative growth in GNP per capitashould not be a cause for concern.5) B etween 1980 and 2000, virtually all countries have become more open.6) L arge countries tend to be more open than small countries.7) A s measured by the index of openness, the United States is relatively closed, and yet, it wasthe world's largest exporter in 2000.8) T ravel services include purchases of items by residents of one country when they travel toanother country.9) C ountries have trade surpluses when they export more than they import.10) M ost of world trade is in the form of manufactured consumer goods such as TVs, stereos,VCRs, and running shoes.。
英文版国际金融试题和答案
Part Ⅰ.Decide whether each of the following statements is true or false (10%)每题1分，答错不扣分分，答错不扣分1. 1. If If If perfect perfect perfect markets markets markets existed, existed, existed, resources resources resources would would would be be be more more more mobile mobile mobile and and and could could could therefore therefore therefore be transferred be transferred to to those those countries more willing to pay a high price for them. ( T ) 2. The forward contract can h edge hedge hedge future receivables future receivables or or payables payables payables in in in foreign currencies to foreign currencies to i nsulate insulate insulate the the the firm firm against exchange rate risk. ( T ) 3. The primary objective of the multinational corporation is still the same primary objective of any firm, i.e., to maximize shareholder wealth. ( T ) 4. A low inflation rate tends to increase imports and decrease exports, thereby decreasing the current account deficit, other things equal. ( F ) 5. A capital account deficit reflects a net sale of the home currency in exchange for other currencies. This places up ward pressure on that home currency’s value. ( F ) 6. The theory of comparative advantage implies that countries should specialize in production, thereby relying on other countries for some products. ( T ) 7. 7. Covered Covered Covered interest interest interest arbitrage arbitrage arbitrage is is is plausible plausible plausible when when when the the the forward forward forward premium premium premium reflect reflect reflect the the the interest interest interest rate rate rate differential differential between two countries specified by the interest rate parity formula. ( F ) 8． The total impact of transaction exposure is on the overall value of the firm. ( F ) 9. A put option is an option to sell-by the buyer of the option-a stated number of units of the underlying instrument at a specified price per unit during a specified period. ( T ) 10. Futures must be marked-to-market. Options are not. ( T ) Part Ⅱ:Cloze (20%)每题2分，答错不扣分分，答错不扣分1. If inflation in a foreign country differs from inflation in the home country, the exchange rate will adjust to maintain equal( purchasing power ）2. Speculators who expect a currency to ( appreciate ) could purchase currency futures contracts for that currency. 3. 3. Covered Covered Covered interest interest interest arbitrage arbitrage arbitrage involves involves involves the short-term the short-term investment investment in in in a a a foreign foreign foreign currency currency currency that that that is covered is covered by by a a ( forward contract ) to sell that currency when the investment matures. 4. （ Appreciation/ Revalue ）of RMB reduces inflows since the foreign demand for our goods is reduced and foreign competition is increased. 5. ( PPP ) suggests a relationship between the inflation differential of two countries and the percentage change in the spot exchange rate over time. 6. 6. IFE IFE IFE is is is based based based on on on nominal nominal nominal interest interest interest rate rate rate ( ( differentials ), ), which which which are are are influenced influenced influenced by by by expected expected inflation. 7. Transaction exposure is a subset of economic exposure. Economic exposure includes any form by which the firm’s ( ( value ) will be affected. 8. 8. The The The option option option writer writer writer is is is obligated obligated obligated to to to buy buy buy the the the underlying underlying underlying commodity commodity commodity at at at a a a stated stated stated price price price if if if a a a ( ( put option ) is exercised 9. There are three types of long-term international bonds. They are Global bonds , ( eurobonds ) and ( foreign bonds ). 10. 10. Any Any Any good good good secondary secondary secondary market market market for for for finance finance finance instruments instruments instruments must must must have have have an an an efficient efficient efficient clearing clearing clearing system. system. system. Most Most Eurobonds are cleared through either ( Euroclear ) or Cedel. Part Ⅲ :Questions and Calculations (60%)过程正确结果计算错误扣2分1. Assume the following information: A Bank B Bank Bid price of Canadian dollar $0.802 $0.796 Ask price of Canadian dollar $0.808 $0.800 Given Given this this this information, information, information, is is is locational locational locational arbitrage arbitrage arbitrage possible? possible? If If so, so, so, explain explain explain the the the steps steps steps involved involved involved in in in locational locational arbitrage, and compute the profit from this arbitrage if you had $1,000,000 to use. (5%) ANSWER: Y es! One could purchase New Zealand dollars at Y Bank for $.80 and sell them to X Bank for $.802. With $1 million available, 1.25 million New Zealand dollars could be purchased at Y Bank. These New Zealand dollars could then be sold to X Bank for $1,002,500, thereby generating a profit of $2,500. 2. Assume that the spot exchange rate of the British pound is $1.90. How will this spot rate adjust in two years if if the the the United United United Kingdom Kingdom Kingdom experiences experiences experiences an an an inflation inflation inflation rate rate rate of of of 7 7 7 percent percent percent per per per year year year while while while the the the United United United States States experiences an inflation rate of 2 percent per year?(10%) ANSWER: According to PPP , forward rate/spot=indexdom/indexfor the exchange rate of the pound will depreciate by 4.7 percent. Therefore, the spot rate would adjust to $1.90 × [1 + (–.047)] = $1.8107 3. 3. Assume Assume Assume that that that the spot the spot exchange exchange rate rate rate of the of the Singapore Singapore dollar dollar dollar is is is $0.70. $0.70. The The one-year one-year one-year interest interest interest rate rate rate is is is 11 11 percent in the United States and 7 percent in Singapore. What will the spot rate be in one year according to the IFE? (5%) (5%) ANSWER: according to the IFE,St+1/St=(1+Rh)/(1+Rf) $.70 × (1 + .04) = $0.728 4. Assume that XYZ Co. has net receivables of 100,000 Singapore dollars in 90 days. The spot rate of the S$ is $0.50, and the Singapore interest rate is 2% over 90 days. Suggest how the U.S. firm could implement a money market hedge. Be precise . (10%) ANSWER: The firm could borrow the amount of Singapore dollars so that the 100,000 Singapore dollars to be be received received received could could could be be be used used used to to to pay pay pay off off off the the the loan. loan. This This amounts amounts amounts to to to (100,000/1.02) (100,000/1.02) (100,000/1.02) = = = about about about S$98,039, which S$98,039, which could could be be be converted converted converted to to to about about about $49,020 $49,020 $49,020 and and and invested. invested. The The borrowing borrowing borrowing of of of Singapore Singapore Singapore dollars dollars dollars has has has offset offset offset the the transaction exposure due to the future receivables in Singapore dollars. 5. 5. A A U.S. company ordered ordered a a a Jaguar Jaguar Jaguar sedan. In sedan. In 6 6 months , months , it will pay pay ££30,000 30,000 for for for the the the car. car. car. It It worried worried that that pound ster1ing might rise sharply from the current rate($1.90). So, the company bought a 6 month pound call (supposed contract size = £35,000) with a strike price of $1.90 for a premium of 2.3 cents/£. (1)Is hedging in the options market better if the £ rose to $1.92 in 6 months? (2)what did the exchange rate have to be for the company to break even?（15%）Solution: (1)If the £ rose to $1.92 in 6 months, the U.S. company would rose to $1.92 in 6 months, the U.S. company would exercise the pound call option. The sum of the strike price and premium is $1.90 + $0.023 = $1.9230/£This is bigger than $1.92. So hedging in the options market is not better. (2) when we say the company can break even, we mean that hedging or not hedging doesn’t matter. And only when (strike price + premium )= the exchange rate , hedging or not doesn’t matter. So, the exchange rate =$1.923/£. 6. Discuss the advantages and disadvantages of fixed exchange rate system.(15%) textbook page50 答案以教材第50 页为准页为准P AR T Ⅳ: Diagram(10%) The strike price for a call is $1.67/£. The premium quoted at the Exchange is $0.0222 per British pound. Diagram the profit and loss potential, and the break-even price for this call option Solution: Following diagram shows the profit and loss potential, and the break-even price of this put option: P AR T Ⅴ:Additional Question Suppose Suppose that that that you you you are are are expecting expecting expecting revenues revenues revenues of of of Y Y 100,000 100,000 from from from Japan Japan Japan in in in one one one month. month. Currently, Currently, 1 1 1 month month forward contracts are trading at $1 = $105 Y en. Y ou have the following estimate of the Y en/$ exchange rate in one month. Price Probability 90 Y en/$ 4% 95 Y en/$ 25% 100 Y/$ 45% 105 Y en/$ 20% 110 Y en/$ 6% a) What position in forward contracts would you take to hedge your exchange risk? b) Calculate the expected value of the hedge. c) How could you replicate this hedge in the money market? Y ou are expecting revenues of Y100,000 in one month that you will need to covert to dollars. Y ou could hedge this in forward markets by taking long positions in US dollars (short positions in Japanese Y en). By locking in your price at $1 = Y105, your dollar revenues are guaranteed to be Y100,000/ 105 = $952 On the other hand, you can wait and use the spot markets. Exchange Rate Probability Revenue w/Hedge Revenue w/out Hedge V alue of Hedge 90 Y/$ 4% $1,111 $952 -$159 95 Y/$ 25% $1,052 $952 -$100 100 Y/$ 45% $1,000 $952 -$48 105 Y/$ 20% $952 $952 $0 110 Y/$ 6% $909 $952 $43 Expected V alue = (.02)(-159) + (.25)(-100) + (.45)(-48) + (.20)(0) + (.08)(43) = -$24 Y ou could replicate this hedge by using the following: a) Borrow in Japan b) Convert the Y en to dollars c) Invest the dollars in the US d) Pay back the loan when you receive the Y100,000 。
（完整word版）国际金融题库（英文版）.doc
（完整word版）国际⾦融题库（英⽂版）.doc Multiple-choice test(only one is correct):1.Gresham’ s Law states thata)Bad money drives good money out of circulation.b)Good money drives bad money out of circulationc)If a country bases its currency on both gold and silver, at an official exchange rate, it will be themore valuable of the two metals that circulate.d)None of the above.2.Balance of paymentsa) is defined as the statistical record of a country’ s international transactions over a certain period oftime presented in the form of a double-entry bookkeepingb) provides detailed information concerning the demand and supply of a country’ s currencyc)can be used to evaluate the performance of a country in international economic competitiond)all of the above3.If the United States imports more than it exports, thena)The supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.b)One can infer that the U.S. dollar would be under pressure to depreciate against other currenciesc)a) and b)d)None of the above4. The current spot exchange rate is $1.55/ and the three-￡month forward rate is $1.50/. You enter into￡ a short position on 1,000￡.At maturity, the spot exchange rate is $1.60/. How much have￡ you made or lost?a) Lost $100b) Made ￡100c) Lost $50d) Made $1505. The sensitivity of“ realized” domestic currency values of the firm denomi’scontractualated cash flowsin foreign currency to unexpected changes in the exchange rate is:a)Transaction exposureb)Translation exposurec)Economic exposured)None of the above6.Three days ago, you ente red into a futures contract to sell ?62,500 at $1.20 per ?. Over the past three days the contract has settled at $1.20, $1.22, and $1.24. How much have you made or lost?a)Lost $0.04 per ? or $2,500b)Made $0.04 per ? or $2,500c)Lost $0.06 per ? or $3,750d)None of the above7.A swap banka)Can act as a broker, bringing together counterparties to a swapb)Can act as a dealer, standing ready to buy and sell swapsc)Both a) and b)d)Only sometimes a) but never ever b)8.Suppose that the one-year interest rate is 5.0 percent in the United States, the spot exchange rate is$1.20/?, and the one -year forward exchange rate is $1.16/?. What must one -year interest rate be in the euro zone?a) 5.0%b) 1.09%c) 8.62%d) None of the above.a b$1.89 =1￡.00. If you were to buy $10,000,000 worth of British pounds and then sell them five minutes later, how much of your $10,000,000 would be“ eaten-ask”spread?bythe bida)$1,000,000b)$52,910.05c)$100,000d)$52,631.5810.Under the gold standard, international imbalances of payment will be corrected automatically underthea)Gresham Exchange Rate regimeb)European Monetary Systemc)Price-specie-flow mechanismd)Bretton Woods Accord11.With any hedgea)Your losses on one side should about equal your gains on the other sideb)You should try to make money on both sides of the transaction: that way you make money comingand goingc)You should spend at least as much time working the hedge as working the underlying deal itselfd)You should agree to anything your banker puts in front of your face12. Comparing“ forward” and“ futures” exchange contracts, we can say that:a)They are both“ marked-to-market” daily.b)Their major difference is in the way the underlying asset is priced for future purchase or sale:futures settle daily and forwards settle at maturity.c) A futures contract is negotiated by open outcry between floor brokers or traders and is traded on organized exchanges, while forward contract is tailor-made by an international bank for its clients and is traded OTC.d)b) and c)13.An “ option ” isa) a contract giving the seller (writer) the right, but not the obligation, to buy or sell a given quantityof an asset at a specified price at some time in the futureb) a contract giving the owner (buyer) the right, but not the obligation, to buy or sell a given quantity of an asset at a specified price at some time in the futurec)not a derivative, nor a contingent claim, securityd)unlike a futures or forward contract14.Economic exposure refers toa)the sensitivity of realized domestic currency values of the firm ’contractuals cash flows denominated in foreign currencies to unexpected exchange rate changesb)the extent to which the value of the firm would be affected by unanticipated changes in exchange ratec) the potential that the firm ’consolidated financial statement can be affected by changes in exchange ratesd)ex post and ex ante currency exposures15.Under a purely flexible exchange rate systema)Supply and demand set the exchange ratesb)Governments can set the exchange rate by buying or selling reservesc)Governments can set exchange rates with fiscal policyb) and c) are correct.。
国际金融英文版练习题Chapter_1
国际⾦融英⽂版练习题Chapter_1International FinanceAssignment Problems (1) Name: Student No.: Choose the correct answer for the following questions (only ONE correct answer) 1. Which of the following is NOT true regarding the subject matter of international finance?A. International finance studies the important trade theories.B. International finance examines the theory of balance of payments and its relationship with macroeconomic variables.C. International finance studies exchange rate theories and the impacts of the exchange rate on the economy.D. International finance discusses the exchange rate risks and the derivative instruments by which people use to cover the exchange rate risks and to speculate.2. Globalization refers to __________.A. the strengthening of existing international linkages of commerce, finance and the addition of new international linkagesB. the expansion of world governance and global societyC. the increased mobility of peoples and informationD. All of the above3. Mutually beneficial trade requires each country to be the least-cost producer of at least one good that it can export to its trading partner. This is called __________.A. the theory of comparative advantageB. the international finance theoryC. the theory of absolute advantageD. the theory of balance of payments4. Which of the following would NOT be a way to implement comparative advantage?A. IBM exports computers to Gambia.B. Computer hardware is designed in the United States but manufactured and assembled in Malaysia.C. Water of the greatest purity is obtained from the wells in Oregon, bottled, and exported worldwide.D. All of the above are examples of ways to implement comparative advantage.5. Which of the following would NOT be considered a feature of comparative advantage?A. Exporters in country A sell goods to importers in countryB.B. Firms in country A specialize in making products that can be produced relativeefficiently, given country A’s endowment of factors of production. Firms in country B do likewise thus maximizing the combined output of countries A and B.C. Trade exists between countries A and B because of specialized factors of production that cannot be moved among countries.D. All of the above are features of comparative advantage.6. The real sector in an economy deals with __________.A. transactions in all goods and servicesB. transactions in all financial assetsC. transactions in goods, services and financial assetsD. transactions in new technological products only7. Of the following, which would NOT be considered a way that government interferes with comparative advantage?A. tariffsB. quotasC. managerial skillsD. other non-tariff restrictions8. A firm with operations in more than one country is called a (an) _________.A. big firmB. multinational corporationC. international firmD. all of the above9. The primary goal of an MNC comes down to __________.A. seek marketsB. improve its production efficiencyC. gain access to technology or managerial expertiseD. maximize shareholder wealth10. World trade of goods and services has expanded in a remarkable pace because of the __________.A. reduction in trade barriersB. lower transportation costsC. advances in telecommunications, information technology and financial servicesD. All of the above are the reasons of rapid growth in international trade.11. Nowadays the world trade in goods and services is important __________.A. only to developed countriesB. only to less developed countriesC. to both developed and less developed countriesD. to neither developed nor less developed counties12. Which of the following is NOT a characteristic of the nowadays financial markets?A. Increasingly interdependent national financial marketsB. the global trend toward free-market economiesC. An increasingly number of cross-border partnerships, including many international merges, acquisitions, and joint venturesD. An increasing number of cooperative linkages among securities exchange13. __________ indicates that mutually beneficial trade can occur even when one nation is absolutely more efficient in the production of all goods.A. The theory of comparative advantageB. The theory of absolute advantageC. The theory of balance of paymentsD. The theory of exchange rate determination14. A well-established multinational company needs __________ to maximize its firm value.A. an open market placeB. high quality strategic managementC. access to capitalD. all of the aboveQuestions 15 through 20 are based on the information presented in table 1.1:Table 1.1Production capabilityContainers of snowboards Containers of digital cameras Austria has 1,000 units 15 containers/unit 8 containers/unitof production factorsRussia has 1,000 units 12 containers/unit 3 containers/unitof production factors15. One production factor in Austria has a (an) __________ over one production factor in Russia in _________.A. absolute disadvantage; digital camerasB. absolute disadvantage; snowboardsC. absolute advantage; both digital cameras and snowboardsD. none of the above16. Austria has a large comparative advantage over Russia in the production of __________ at a ratio of __________.A. snowboards; 5:4B. digital cameras; 8:3C. snowboards; 8:3D. digital cameras; 5:417. Assume no trade between Austria and Russia. If each country puts 50% of their factors into each product, the total number of snowboards and digital cameras produced by the two countries combined are __________ and _________.A. 13,500 snowboards; 5,500 camerasB. 12,000 snowboards; 8,000 camerasC. 5,500 snowboards; 13,500 camerasD. 3,000 cameras; 15,000 snowboards18. If trade takes place at Russia’s domestic price, __________ snowboards will be required to obtain 1 digital camera.A. 4B. 2.5C. 1.25D. 0.2519. If each country specializes in production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of 3 snowboards per digital camera, how many cameras and snowboards will be available to be consumed in Austria if they trade 3,000 cameras to Russia?A. 9,000 snowboards and 5,000 camerasB. 3,000 snowboards and 3,000 camerasC. 3,000 snowboards and 9,000 camerasD. There is not enough information to answer this question20. If each country specializes in production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of 3 snowboards per digital camera, how many cameras and snowboards will be available to be consumed in Russia if they trade 9,000 snowboards to Austria?A. 9,000 snowboards and 5,000 camerasB. 3,000 snowboards and 3,000 camerasC. 3,000 snowboards and 9,000 camerasD. There is not enough information to answer this questionAnswers to Assignment Problems (1)1. A2. D3. C4. D5. D6. A7. C8. B9. D 10. D11.C 12.B 13.A 14.D 15. C 16. B 17. A 18. A 19. A 20. B。
金融学第二版(英文版)Chapter 1
Typical organizational chart
CFO (chief financial officer)
Def.: Senior vice president with responsibility for all the financial functions in the company Reports directly to the chief executive officer (CEO) 3 departments report to him:
savings (asset allocation) – Financing decisions: income or borrowing (liability) – Risk-management decisions: how to reduce financial uncertainties
Household’s wealth
Financial decisions of companies
Def.: Companies are entities that have the primary function to produce goods and services In order to produce companies use capital (physical and financial) Companies have an access to the financial capital through the financial markets Come in different shapes and sizes The branch of finance dealing with them is called corporate finance
(完整word版)英文版国际金融试题和答案
PartⅠ.Decide whether each of the following statements is true or false (10%)每题1分, 答错不扣分1.I.perfec.market.existed.resource.woul.b.mor.mobil.an.coul.therefor.b.transferre.t.thos.countrie.mor.willin.t.pa..hig.pric.fo.them.. .. .2.Th.forwar.contrac.ca.hedg.futur.receivable.o.payable.i.foreig.currencie.t.insulat.th.fir.agains.exchang.rat.risk ... . )3.Th.primar.objectiv.o.th.multinationa.corporatio.i.stil.th.sam.primar.objectiv.o.an.firm.i.e..t.maximiz.sharehol de.wealth.. .. )4..lo.inflatio.rat.tend.t.increas.import.an.decreas.exports.thereb.decreasin.th.curren.accoun.deficit.othe.thing.e qual......5..capita.accoun.defici.reflect..ne.sal.o.th.hom.currenc.i.exchang.fo.othe.currencies.Thi.place.upwar.pressur.o.tha.hom.currency’.value.. .. )parativ.advantag.implie.tha.countrie.shoul.specializ.i.production.thereb.relyin.o.othe.countrie .fo.som.products.. .. .7.Covere.interes.arbitrag.i.plausibl.whe.th.forwar.premiu.reflec.th.interes.rat.differentia.betwee.tw.countrie.sp ecifie.b.th.interes.rat.parit.formula. .. . )8.Th.tota.impac.o.transactio.exposur.i.o.th.overal.valu.o.th.firm.. .. .9. .pu.optio.i.a.optio.t.sell-b.th.buye.o.th.option-.state.numbe.o.unit.o.th.underlyin.instrumen.a..specifie.pric.pe.uni.durin..specifie.period... . )10.Future.mus.b.marked-to-market.Option.ar.not.....)PartⅡ:Cloze (20%)每题2分, 答错不扣分1.I.inflatio.i..foreig.countr.differ.fro.inflatio.i.th.hom.country.th.exchang.rat.wil.adjus.t.maintai.equal.. purchasin.powe... ）2.Speculator.wh.expec..currenc.t..appreciat..... .coul.purchas.currenc.future.contract.fo.tha.currency.3.Covere.interes.arbitrag.involve.th.short-ter.investmen.i..foreig.currenc.tha.i.covere.b.....forwar.contrac...... .t. sel.tha.currenc.whe.th.investmen.matures.4.. Appreciation.Revalu....）petitio.i.increased.5.....PP... .suggest..relationshi.betwee.th.inflatio.differentia.o.tw.countrie.an.th.percentag.chang.i.th.spo.exchang.ra t.ove.time.6.IF.i.base.o.nomina.interes.rat....differential....).whic.ar.influence.b.expecte.inflation.7.Transactio.exposur.i..subse.o.economi.exposure.Economi.exposur.include.an.for.b.whic.th.firm’... valu... .wil.b.affected.modit.a..state.pric.i..... pu..optio..i.exercised9.Ther.ar.thre.type.o.long-ter.internationa.bonds.The.ar.Globa.bond. .. eurobond.....an....foreig.bond...).10.An.goo.secondar.marke.fo.financ.instrument.mus.hav.a.efficien.clearin.system.Mos.Eurobond.ar.cleare.thr oug.eithe...Euroclea... ..o.Cedel.PartⅢ:Questions and Calculations (60%)过程正确结果计算错误扣2分rmation:A BankB BankBid price of Canadian dollar $0.802 $0.796Ask price of Canadian dollar $0.808 $0.800rmation.i.locationa.arbitrag.possible?put.t h.profi.fro.thi.arbitrag.i.yo.ha.$1,000,e.(5%)ANSWER:Yes! One could purchase New Zealand dollars at Y Bank for $.80 and sell them to X Bank for $.802. With $1 million available, 1.25 million New Zealand dollars could be purchased at Y Bank. These New Zealand dollars could then be sold to X Bank for $1,002,500, thereby generating a profit of $2,500.2.Assum.tha.th.spo.exchang.rat.o.th.Britis.poun.i.$1.90..Ho.wil.thi.spo.rat.adjus.i.tw.year.i.th.Unite.Kingdo.experience.a.inflatio.rat.o..percen.pe.yea.whil.th.Unite.State.experience.a.inflatio.rat.o..perc en. pe.year?(10%)ANSWER:According to PPP, forward rate/spot=indexdom/indexforth.exchang.rat.o.th.poun.wil.depreciat.b.4..percent.Therefore.th.spo.rat.woul.adjus.t.$1.9..[..(–.047)..$1.81073.Assum.tha.th.spo.exchang.rat.o.th.Singapor.dolla.i.$0.70..Th.one-yea.interes.rat.i.1.percen.i.th.Unite.State.a n..percen.i.Singapore..Wha.wil.th.spo.rat.b.i.on.yea.accordin.t.th.IFE?.(5%)ANSWER: according to the IFE,St+1/St=(1+Rh)/(1+Rf)$.70 × (1 + .04) = $0.7284.Assum.tha.XY.Co.ha.ne.receivable.o.100,00.Singapor.dollar.i.9.days..Th.spo.rat.o.th.S.i.$0.50.an.th.Singap or.interes.rat.i.2.ove.9.days..Sugges.ho.th.U.S.fir.coul.implemen..mone.marke.hedge..B.precis. .(10%)ANSWER: The firm could borrow the amount of Singapore dollars so that the 100,000 Singapore dollars to be received could be used to pay off the loan. This amounts to (100,000/1.02) = about S$98,039, which could be converted to about $49,020 and invested. The borrowing of Singapore dollars has offset the transaction exposure due to the future receivables in Singapore dollars.pan.ordere..Jagua.sedan.I..month..i.wil.pa.£30,00.fo.th.car.I.worrie.tha.poun.ster1in.migh.ris.sharpl.fro.th.curren.rate($1.90)pan.bough...mont.poun.cal.(suppose.contrac.siz..£35,000.wit..strik.pric.o.$1.9.fo..premiu.o.2..cents/£.(1)Is hedging in the options market better if the £ rose to $1.92 in 6 months?(2)what did the exchange rate have to be for the company to break even?（15%）Solution:(1)I.th..ros.t.$pan.woul. exercis.th.poun.cal.option.Th.su.o.th.strik.pric.an.premiu..i.$1.90 + $0.023 = $1.9230/£Thi.i.bigge.tha.$1.92.So hedging in the options market is not better.(2.whe.w.sa.th. compan.ca.brea.even.w.mea.tha.hedgin.o.no.hedgin.doesn’. matter.An.onl.whe.(strik.pric..premiu.).th.exchang.rat.,hedging or not doesn’t matter.So, the exchange rate =$1.923/£.6.Discus.th.advantage.an.disadvantage.o.fixe.exchang.rat.system.(15%)textbook page50 答案以教材第50 页为准PART Ⅳ: Diagram(10%)Th.strik.pric.fo..cal.i.$1.67/£.Th.premiu.quote.a.th.Exchang.i.$0.022.pe.Britis.pound.Diagram the profit and loss potential, and the break-even price for this call optionSolution:Following diagram shows the profit and loss potential, and the break-even price of this put option:PART Ⅴa) b) Calculate the expected value of the hedge.c) How could you replicate this hedge in the money market?Yo.ar.expectin.revenue.o.Y100,00.i.on.mont.tha.yo.wil.nee.t.cover.t.dollars.Yo.coul.hedg.thi.i.forwar.market.b.takin.lon.position.i.U.dollar.(shor.position.i.Japanes.Yen).B.lockin.i.you.pric.a.$..Y105.you.dolla.revenue.ar.guarantee.t.b.Y100,000/ 105 = $952You could replicate this hedge by using the following:a) Borrow in Japanb) Convert the Yen to dollarsc) Invest the dollars in the USd) Pay back the loan when you receive the Y100,000。
国际金融习题集英语版
国际金融习题集英语版Single－Choice Questions下载该金融英语习题集1．A country’s balance of payments records：ba．The value of all exports of goods and services from that country for a period of time．b．All flows of value between that country’s residents and residents of the rest of the world during a period of time．c．All flows of financial assets that cross that country’s borders during a period of time．d．All flows of goods into that country during a period of time．2．A credit item in the balance of payments is：aa．An item for which the country must be paid．b．An item for which the country must pay．c．Any imported item．d．An item that creates a monetary claim owed to a foreigner．3．Every international exchange of value is entered into the balance－of－payments accounts __________ time（s）．ba．1b．2c．3d．4下载该金融英语习题集4．A debit item in the balance of payments is：ba．An item for which the country must be paid．b．An item for which the country must pay．c．Any exported item．d．An item that creates a monetary claim on a foreigner．5．In a nation's balance of payments，which one of the following items is always recorded as a positive entry? da．Changes in foreign currency reserves．b．Imports of goods and services．c．Military foreign aid supplied to allied nations．d．Purchases by foreign travelers visiting the country．6．The sum of all of the debit items in the balance of payments：ba．Equals the overall balance．b．Equals the sum of all credit items．c．Equals ‘compensating’ transactions．d．Equals the sum of credit items minus errors and omissions．7．Which of the following capital transactions are entered as debits in the U．S．balance of payments?ba．A U．S．resident transfers $100 from his account at Credit Suisse in Basel （Switzerland）to his account at a San Francisco branch of Wells Fargo Bank．b．A French resident transfers $100 from his account at Wells Fargo Bank in San Francisco to his Credit Suisse account in Basel．c．A U．S．resident sells his IBM stock to a French resident．d．A U．S．resident sells his Credit Suisse stock to a French resident．8．An increase in a nation's financial liabilities to foreign residents is a：ca．Reserve inflow．b．Reserve outflow．c．Capital inflow．d．Capital outflow．下载该金融英语习题集9．__________ are money－like assets that are held by governments and that are recognized by governments as fully acceptable for payments between them．a a．Official international reserve assetsb．Unofficial international reserve assetsc．Official domestic reserve assetsd．Unofficial domestic reserve assets10．Which of the following is considered a capital inflow?aa．A sale of U．S．financial assets to a foreign buyer．b．A loan from a U．S．bank to a foreign borrower．c．A purchase of foreign financial assets by a U．S．buyer．d．A U．S．citizen’s repayment of a loan from a foreign bank．11．In a country’s balance of payments，which of the following transactions are debits?aa．Domestic bank balances owned by foreigners are decreased．b．Foreign bank balances owned by domestic residents are decreased．c．Assets owned by domestic residents are sold to nonresidents．d．Securities are sold by domestic residents to nonresidents．12．The role of __________ is to direct one nation’s savings into another nation’s investments：da．Merchandise trade flowsb．Services flowsc．Current account flowsd．Capital flows下载该金融英语习题集13．The net value of flows of goods，services，income，and unilateral transfers is called the：ba．Capital account．b．Current account．c．Trade balance．d．Official reserve balance．14．The net value of flows of financial assets and similar claims （excluding official international reserve asset flows）is called the：aa．Financial account．b．Current account．c．Trade balance．d．Official reserve balance．15．The financial account in the U．S．balance of payments includes：ba．Everything in the current account．b．U．S．government payments to other countries for the use of military bases．c．Profits that Nissan of America sends back to Japan．d．New U．S．investments in foreign countries．16．A U．S．resident increasing her holdings of a foreign financial asset causes a：da．Credit in the U．S．current account．b．Debit in the U．S．current account．c．Credit in the U．S．capital account．下载该金融英语习题集d．Debit in the U．S．capital account．17．A foreign resident increasing her holdings of a U．S．financial asset causes a：ca．Credit in the U．S．current account．b．Debit in the U．S．current account．c．Credit in the U．S．capital account．d．Debit in the U．S．capital account．18．A deficit in the current account：aa．Tends to cause a surplus in the financial account．b．Tends to cause a deficit in the financial account．c．Has no relationship to the financial account．d．Is the result of increasing exports and decreasing imports．19．In September，2005，exports of goods from the U．S．decreased $3．3 billion to $73．4 billion，and imports of goods increased $3．8 billion to $144．5 billion．This increased the deficit in：ca．The balance of payments．b．The financial account．c．The current account．d．Unilateral transfers．20．Which of the following would contribute to a U．S．current account surplus?ba．The United States makes a unilateral tariff reduction on imported goods．b．The United States cuts back on American military personnel stationed in Japan．c．U．S．tourists travel in large numbers to Asia．d．Russian vodka becomes increasingly popular in the United States．21．Which of the following transactions is recorded in the financial account?aa．Ford motor company builds a new plant in Chinab．A Chinese businessman imports Ford automobiles from the United States．c．A U．S．tourist spends money on a trip to China．d．The New York Yankees are paid $10 million by the Chinese to play an exhibition game in Beijing，China．22．If a British business buys U．S．government securities，how will this be entered in the balance of payments?ca．It will appear in the trade account as an import．b．It will appear in the trade account as an export．c．It will appear in the financial account as an increase in U．S．assets held by foreigners．d．It will appear in the financial account as a decrease in U．S．assets held by foreigners．23．In the balance of payments，the statistical discrepancy or error term is used to：a a．Ensure that the sum of all debits matches the sum of all credits．b．Ensure that imports equal the value of exports．c．Obtain an accurate account of a balance－of－payments deficit．d．Obtain an accurate account of a balance－of－payments surplus．24．Official reserve assets are：ba．The gold holdings in the nation’s central bank．下载该金融英语习题集b．Money like assets that are held by governments and that are recognized by governments as fully acceptable for payments between them．c．Government T－bills and T－bonds．d．Government holdings of SDR’s25．Which of the following constitutes the largest component of the world’s international reserve assets?da．Gold．b．Special Drawing Rights．c．IMF Reserve Positions．d．Foreign Currencies．26．The net accumulation of foreign assets minus foreign liabilities is： ca．Net official reserves．b．Net domestic investment．c．Net foreign investment．d．Net foreign deficit．27．A country experiencing a current account surplus：ba．Needs to borrow internationally．b．Is able to lend internationally．下载该金融英语习题集c．Must also have had a surplus in its "overall" balance．d．Spent more than it earned on its merchandise and service trade，international income payments and receipts and international transfers．28．The __________ measures the sum of the current account balance plus the private capital account balance．ca．Official capital balanceb．Unofficial capital balancec．Official settlements balanced．Unofficial settlements balance29．If the overall balance is in __________，there is an accumulation of official reserve assets by the country or a decrease in foreign official reserve holdings of the country's assets．a a．Surplusb．Deficitc．Balanced．Foreign hands30．Which of the following is the current account balance NOT equal to?da．The difference between domestic product and domestic expenditure．b．The difference between national saving and domestic investment．c．Net foreign investment．d．The difference between government saving and government investment．。
国际金融(英文版第二版)Chapter 1 Balance of Payment
The difference between direct investment and portfolio investment revolves around whether or not the investor intends to take an active role in the management of the enterprise the assets of which are being acquired
Chapter 1 Balance of payments
1.1 International transactions: the balance of payments
The
balance of payments is the record of the economics and financial flows that take place over a specified time period between residents and non-residents of a given country.
The current account
The
trade balance
services
The trade balance comprises merchandise exports and impocial services include such things as freight, insurance, passenger services and travel.
Table 1.1 Standard components of the balance of payments
Current
account Exports fob - Imports fob = Trade balance + Exports of non-financial services - Imports of non-financial services + Investment income (credit) - Investment income (debit) +(-) Private unrequited transfers +(-) Official unrequited transfers = Current account balance Capital account +(-) Direct investment +(-) Portfolio investment +(-) Other long-term capital +(-) Other short-term capital +(-) Net errors and omissions +(-) Counterpart items +(-) Total change in reserves = Capital account balance
Chapter_1__The_Balance_of_Payment
Ⅱ
Slide 1-5
National accounts
国民经济 账户
Result
reflected in a prominent role
Slide 1-6
Balance of payments
国际收支 平衡表
Exchange rate
1.1 Double-Entry Accounting
U.S. credit transaction (+)
Merchandise exports 商品出口 Transportation and travel receipts 运输及旅游收入 Income received from investments abroad 海外投 资所获得的收入 Gifts received from foreign residents外国居民捐赠 Aid received from foreign governments 外国政府 援助 Investments in the United States by overseas residents外国居民在美国的投资
Payment to foreigners
Debit transaction (-) 借方交易
国际收支平衡表中所用记账方法是国际上通行的 借贷复式记账法 ，每一笔国际经济交易都要以同 一数额出现两次，一次在借方，一次在贷方
Slide 1-21
Business School
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IMF(International Monetary Fund) WTO(World Trade Organization ) BIS(Bank for International Settlements) OECD(Organization for Economic Co-operation and Development ) EU(European Union)
国际金融英文版习题chapter
1International FinanceAssignment Problems (2) Name: Student No.:I.Choose the correct answer for the following questions (only ONE correct answer)(5 credits for each question, total credits 4 x 15 = 60)1. According to the principle of the balanced balance of payments, if a country reducesits foreign exchange reserves by $20 million and the statistical discrepancy is in the credit entry of $5 million in a given period of time, the country runs ____________________ of its balance of payments during that period of time.A.$15 million deficitsB.$25 million deficitsC.$20 million deficitsD.$5 million deficits2.If a country' s domestic saving is greater than domestic investment, the country probably has _______________ .A. a current account surplusB. a net capital outflowC. a current account deficitD.Both A and B are possible.3. A debit entry in the balance-of-paymentsaccount represents a transaction thatA. a domestic resident receives a payment from abroadB. a domestic resident makes a payment to a foreign residentC.will improve the current account statusD.will have no affects on the nation ' s foreign exchange reserves4.In terms of balance-of-payments account, which of the following would be recorded as a debit entry in the U.S. BOP?A.exports of merchandiseB.exports of servicesC.purchase of the U.S. Treasury bonds by non-residentsD.an increase of the deposit in a U.S. resident's account at a foreign bank5. A balance-of-payments deficit is defined as a situation in which ___________________ .A.the value of paymentsmade to the foreigners exceedsthe value of receipts received from the foreigners in a given period of timeB.the government must borrow in order to meet its budget obligationsC.the value of manufactured good exports is less than the value of imported goodsD. a nation earns much in extra assets or reduced liabilities in its dealings with the rest of the world6.Which of the following would NOT be considered as a typical BOP transaction?A.Toyota USA is a US distributor of automobilesmanufactured in Japanby its parent company.B. A U.S. subsidiary of European financial giant, Credit Suisse, pays dividends to its parent in Zurich.C. A US tourist purchases gifts at a museum in London.D.All are example of BOP transactions.7.The balanceof payments is a statisticalrecord which measures the total value ofA. a country ' s foreign exchange reinsearcv e rstain period of timeB. a country 'fsoreign trades between the residents of a country and its non-residents for a given period of timeC.all economic and financial transactions between the residents of a country and itsnon-residents for a given period of timeD. a country ' s capital inflows and outflows at a particular date in a given year8. A British pension fund sells some of its holdings of the stocks of U.S. companies in order to buy U.S. corporate bonds. This transaction will affect __________________________________ .A.the U.S. international investment positionB.the British international investment position' international investment positionC. both countriesD. None of the above. This is because both countries position unchanged, only the composition of foreign investments in both U.S. and U.K. changes.account?A. A U.S. embassy in Beijing pays salaries to its American staffs.B. The World Bank furnishes the Chinese government with a loan.C. A U.S. student pays tuition fees for his 4 year-study in Beijing University.D. The Chinese embassyin Washington buys telecommunication equipments from a Chinesecompany in Shanghai.10. If the U.S. runs current account deficits, we can expect that _____________________A. it may act as a net debtor in the rest of the worldB. its domestic saving may less than its domestic investmentC. its domestic production is less than its domestic consumptionD. all of the above11. The trade deficit means that _______________ .A. residents are importing more goods than they are exportingB. residents are borrowing more funds than they are lendinginternational investm9. Which of the following transactions is included in China -of-p 'aysmbea nlatsnceC.residents are receiving more payments than they are makingD.residents are producing more goods than they are consuming12.Which of the following is an example of an exchange of financial assets?A.the exchange of butter for wheatB.the exchange of information technologyC.the exchange of a fixed-rate loan for a floating-rate loanD.the exchange of gold for jewelry13.For most countries, the subcategory that typically dominates the current account isA.unilateral transfersB.goods tradeC.income tradeD.services trade14.When categorizing investments for the financial account component of the balance of payments the _______________ is an investmentwhere the investor has no incentive to control whereas the ________________ is an investment where the investor wants to control over the assets.A.direct investment, portfolio investmentB.direct investment, indirect investmentC.portfolio investment, indirect investmentD.portfolio in vestme nt, direct inv estme nt15.If a country ' s diserchxinDrts exceed its imports by $50 million, services tradebalance is net $30 million and unilateral transfers made in excess of those received by $5 million, what is the country ' s current account balance?A.$85 millio nB.$75 millio nC.$15 millio nD.$25 millio nIL Answer the following questions: (3 credits tor each question, total credits 3x6=18)Questions 1 tinaugh 5 are based on the iuformation of the selected items fi om conntiyA's balance of payments in 2010.C oiintry A's Balance of Payments, 2010 ( millions of U.S. dollar)Goods expon7J9Goods import1,145Service export279Service import210hiconie payments269Incom 亡receipts284Nec uniiaceial transfers-49Eiioi's and oinissioiii111.Country A ' s BOT is ________________ .2.Country A ' s current account balance is ________________________ .3.Suppose the changes in country A ' s official reserves are zero in 2010, its capital and finan cial acco unt bala nce MUST be__________________ .s official reserves are recorded on the credit side by $10 million in4. If cou ntry A2010, its capital and financial account balance should be ____________________ .5. Based on the assumption of question 4, country A has BOP deficit or surplus in 2010? Explain.6. What is the current account balance of a nation with a government budget deficit of$128 billion, private saving of $806 billion, and domestic capital formation of $777 billion?III.Express the following operations in the Dutch balance of payments in T-accounts: (5 credits for each question, total credits 3 x 5 = 15)a. A Dutch company exports ?100,000 goods to a London company for ?100,000 in bank deposits.b.An import billed for ?150,000 paid with a check drawn on aoLndon bank.c. A Dutch company based in Rotterdam uses ?1 million that it was holding in a short-term deposit with its Rotterdam bank to purchase 10-year bonds issued by German government.IV.True or false: (7 credits)A credit entry in the balanceof paymentsrepresentsa demand for local currency whereasa debit entry representsa supply of local currency. You MUST explain your answer.Pai t IITa. Export (J (+) eoo.ooob. Import (-) (+) e^o.oooc. Pcilfblio uu estineiit (-) (+)a.ooo.ooo |Sliort terni claims Short term liabilitiesG) (十)1950.000Short term liabilities(J (+)| e.ooo oooPart IX'Part IVTrue. Becausethe credit en try in BOP means domestic reside ntsrecei ving foreig ncurre ncies. When they sell those foreig n payme nts, they dema nd the local curre ncy. Thedebit entry in BOP implies domestic residents need to buy foreign currencies with the local curre ncy. Therefore, it represe nts a supply of local curre ncy. 1 c2D 3.B 4 D 5 A 6.D 7. C 8.D 9 B 11. A12. C 13. B 14. D 15. B run i10. DPart II 1. -4262. -391 S10 nullian. 6 S06 -777-125 =-994. 3?0 5 deficits Because The official resents reduced bv。
(完整word版)英文版国际金融试题和答案
PartⅠ.Decide whether each of the following statements is true or false (10%)每题1分，答错不扣分1. If perfect markets existed, resources would be more mobile and could therefore be transferred to those countries more willing to pay a high price for them. ( T )2. The forward contract can hedge future receivables or payables in foreign currencies to insulate the firm against exchange rate risk. ( T )3. The primary objective of the multinational corporation is still the same primary objective of any firm, i.e., to maximize shareholder wealth. ( T )4. A low inflation rate tends to increase imports and decrease exports, thereby decreasing the current account deficit, other things equal. ( F )5. A capital account deficit reflects a net sale of the home currency in exchange for other currencies. This places up ward pressure on that home currency’s value. ( F )6. The theory of comparative advantage implies that countries should specialize in production, thereby relying on other countries for some products. ( T )7. Covered interest arbitrage is plausible when the forward premium reflect the interest rate differential between two countries specified by the interest rate parity formula. ( F )8．The total impact of transaction exposure is on the overall value of the firm. ( F )9. A put option is an option to sell-by the buyer of the option-a stated number of units of the underlying instrument at a specified price per unit during a specified period. ( T )10. Futures must be marked-to-market. Options are not. ( T )PartⅡ:Cloze (20%)每题2分，答错不扣分1. If inflation in a foreign country differs from inflation in the home country, the exchange rate will adjust to maintain equal( purchasing power ）2. Speculators who expect a currency to ( appreciate ) could purchase currency futures contracts for that currency.3. Covered interest arbitrage involves the short-term investment in a foreign currency that is covered by a ( forward contract ) to sell that currency when the investment matures.4. （Appreciation/ Revalue ）of RMB reduces inflows since the foreign demand for our goods is reduced and foreign competition is increased.5. ( PPP ) suggests a relationship between the inflation differential of two countries and the percentage change in the spot exchange rate over time.6. IFE is based on nominal interest rate ( differentials ), which are influenced by expected inflation.7. Transaction exposure is a subset of economic exposure. Economic exposure includes any form by which the firm’s ( value ) will be affected.8. The option writer is obligated to buy the underlying commodity at a stated price if a ( put option ) is exercised9. There are three types of long-term international bonds. They are Global bonds , ( eurobonds ) and ( foreign bonds ).10. Any good secondary market for finance instruments must have an efficient clearing system. Most Eurobonds are cleared through either ( Euroclear ) or Cedel.PartⅢ:Questions and Calculations (60%)过程正确结果计算错误扣2分1. Assume the following information:A BankB BankBid price of Canadian dollar $0.802 $0.796Ask price of Canadian dollar $0.808 $0.800Given this information, is locational arbitrage possible? If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you had $1,000,000 to use. (5%)ANSWER:Yes! One could purchase New Zealand dollars at Y Bank for $.80 and sell them to X Bank for $.802. With $1 million available, 1.25 million New Zealand dollars could be purchased at Y Bank. These New Zealand dollars could then be sold to X Bank for $1,002,500, thereby generating a profit of $2,500.2. Assume that the spot exchange rate of the British pound is $1.90. How will this spot rate adjust in twoyears if the United Kingdom experiences an inflation rate of 7 percent per year while the United States experiences an inflation rate of 2 percent per year?(10%)ANSWER:According to PPP, forward rate/spot=indexdom/indexforthe exchange rate of the pound will depreciate by 4.7 percent. Therefore, the spot rate would adjust to $1.90 ×[1 + (–.047)] = $1.81073. Assume that the spot exchange rate of the Singapore dollar is $0.70. The one-year interest rate is 11 percent in the United States and 7 percent in Singapore. What will the spot rate be in one year according to the IFE? (5%)ANSWER: according to the IFE,St+1/St=(1+Rh)/(1+Rf)$.70 × (1 + .04) = $0.7284. Assume that XYZ Co. has net receivables of 100,000 Singapore dollars in 90 days. The spot rate of the S$ is $0.50, and the Singapore interest rate is 2% over 90 days. Suggest how the U.S. firm could implement a money market hedge. Be precise . (10%)ANSWER: The firm could borrow the amount of Singapore dollars so that the 100,000 Singapore dollars to be received could be used to pay off the loan. This amounts to (100,000/1.02) = about S$98,039, which could be converted to about $49,020 and invested. The borrowing of Singapore dollars has offset the transaction exposure due to the future receivables in Singapore dollars.5. A U.S. company ordered a Jaguar sedan. In 6 months , it will pay £30,000 for the car. It worried that pound ster1ing might rise sharply from the current rate($1.90). So, the company bought a 6 month pound call (supposed contract size = £35,000) with a strike price of $1.90 for a premium of 2.3 cents/£.(1)Is hedging in the options market better if the £ rose to $1.92 in 6 months?(2)what did the exchange rate have to be for the company to break even?（15%）Solution:(1)If the £ rose to $1.92 in 6 months, the U.S. company would exercise the pound call option. The sum of the strike price and premium is$1.90 + $0.023 = $1.9230/£This is bigger than $1.92.So hedging in the options market is not better.(2) when we say the company can break even, we mean that hedging or not hedging doesn’t matter. And only when (strike price + premium )= the exchange rate ,hedging or not doesn’t matter.So, the exchange rate =$1.923/£.6. Discuss the advantages and disadvantages of fixed exchange rate system.(15%)textbook page50 答案以教材第50 页为准PART Ⅳ: Diagram(10%)The strike price for a call is $1.67/£. The premium quoted at the Exchange is $0.0222 per British pound. Diagram the profit and loss potential, and the break-even price for this call optionSolution:Following diagram shows the profit and loss potential, and the break-even price of this put option:PART Ⅴ:Additional QuestionSuppose that you are expecting revenues of Y 100,000 from Japan in one month. Currently, 1 month forward contracts are trading at $1 = $105 Yen. You have the following estimate of the Yen/$ exchange rate in one month.a)b) Calculate the expected value of the hedge.c) How could you replicate this hedge in the money market?You are expecting revenues of Y100,000 in one month that you will need to covert to dollars. You could hedge this in forward markets by taking long positions in US dollars (short positions in Japanese Yen). By locking in your price at $1 = Y105, your dollar revenues are guaranteed to beY100,000/ 105 = $952You could replicate this hedge by using the following:a) Borrow in Japanb) Convert the Yen to dollarsc) Invest the dollars in the USd) Pay back the loan when you receive the Y100,000。
最新国际金融英文版练习题-Chapter-1
International FinanceAssignment Problems (1) Name: Student No.: Choose the correct answer for the following questions (only ONE correct answer) 1. Which of the following is NOT true regarding the subject matter of international finance?A. International finance studies the important trade theories.B. International finance examines the theory of balance of payments and its relationship with macroeconomic variables.C. International finance studies exchange rate theories and the impacts of the exchange rate on the economy.D. International finance discusses the exchange rate risks and the derivative instruments by which people use to cover the exchange rate risks and to speculate.2. Globalization refers to __________.A. the strengthening of existing international linkages of commerce, finance and the addition of new international linkagesB. the expansion of world governance and global societyC. the increased mobility of peoples and informationD. All of the above3. Mutually beneficial trade requires each country to be the least-cost producer of at least one good that it can export to its trading partner. This is called __________.A. the theory of comparative advantageB. the international finance theoryC. the theory of absolute advantageD. the theory of balance of payments4. Which of the following would NOT be a way to implement comparative advantage?A. IBM exports computers to Gambia.B. Computer hardware is designed in the United States but manufactured and assembled in Malaysia.C. Water of the greatest purity is obtained from the wells in Oregon, bottled, and exported worldwide.D. All of the above are examples of ways to implement comparative advantage.5. Which of the following would NOT be considered a feature of comparative advantage?A. Exporters in country A sell goods to importers in countryB.B. Firms in country A specialize in making products that can be produced relativeefficiently, given country A’s endowment of factors of production. Firms in country B do likewise thus maximizing the combined output of countries A and B.C. Trade exists between countries A and B because of specialized factors of production that cannot be moved among countries.D. All of the above are features of comparative advantage.6. The real sector in an economy deals with __________.A. transactions in all goods and servicesB. transactions in all financial assetsC. transactions in goods, services and financial assetsD. transactions in new technological products only7. Of the following, which would NOT be considered a way that government interferes with comparative advantage?A. tariffsB. quotasC. managerial skillsD. other non-tariff restrictions8. A firm with operations in more than one country is called a (an) _________.A. big firmB. multinational corporationC. international firmD. all of the above9. The primary goal of an MNC comes down to __________.A. seek marketsB. improve its production efficiencyC. gain access to technology or managerial expertiseD. maximize shareholder wealth10. World trade of goods and services has expanded in a remarkable pace because of the __________.A. reduction in trade barriersB. lower transportation costsC. advances in telecommunications, information technology and financial servicesD. All of the above are the reasons of rapid growth in international trade.11. Nowadays the world trade in goods and services is important __________.A. only to developed countriesB. only to less developed countriesC. to both developed and less developed countriesD. to neither developed nor less developed counties12. Which of the following is NOT a characteristic of the nowadays financial markets?A. Increasingly interdependent national financial marketsB. the global trend toward free-market economiesC. An increasingly number of cross-border partnerships, including many international merges, acquisitions, and joint venturesD. An increasing number of cooperative linkages among securities exchange13. __________ indicates that mutually beneficial trade can occur even when one nation is absolutely more efficient in the production of all goods.A. The theory of comparative advantageB. The theory of absolute advantageC. The theory of balance of paymentsD. The theory of exchange rate determination14. A well-established multinational company needs __________ to maximize its firm value.A. an open market placeB. high quality strategic managementC. access to capitalD. all of the aboveQuestions 15 through 20 are based on the information presented in table 1.1:Table 1.1Production capabilityContainers of snowboards Containers of digital cameras Austria has 1,000 units 15 containers/unit 8 containers/unitof production factorsRussia has 1,000 units 12 containers/unit 3 containers/unitof production factors15. One production factor in Austria has a (an) __________ over one production factor in Russia in _________.A. absolute disadvantage; digital camerasB. absolute disadvantage; snowboardsC. absolute advantage; both digital cameras and snowboardsD. none of the above16. Austria has a large comparative advantage over Russia in the production of __________ at a ratio of __________.A. snowboards; 5:4B. digital cameras; 8:3C. snowboards; 8:3D. digital cameras; 5:417. Assume no trade between Austria and Russia. If each country puts 50% of their factors into each product, the total number of snowboards and digital cameras produced by the two countries combined are __________ and _________.A. 13,500 snowboards; 5,500 camerasB. 12,000 snowboards; 8,000 camerasC. 5,500 snowboards; 13,500 camerasD. 3,000 cameras; 15,000 snowboards18. If trade takes place at Russia’s domestic price, __________ snowboards will be required to obtain 1 digital camera.A. 4B. 2.5C. 1.25D. 0.2519. If each country specializes in production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of 3 snowboards per digital camera, how many cameras and snowboards will be available to be consumed in Austria if they trade 3,000 cameras to Russia?A. 9,000 snowboards and 5,000 camerasB. 3,000 snowboards and 3,000 camerasC. 3,000 snowboards and 9,000 camerasD. There is not enough information to answer this question20. If each country specializes in production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of 3 snowboards per digital camera, how many cameras and snowboards will be available to be consumed in Russia if they trade 9,000 snowboards to Austria?A. 9,000 snowboards and 5,000 camerasB. 3,000 snowboards and 3,000 camerasC. 3,000 snowboards and 9,000 camerasD. There is not enough information to answer this questionAnswers to Assignment Problems (1)1. A2. D3. C4. D5. D6. A7. C8. B9. D 10. D 11.C 12.B 13.A 14.D 15. C 16. B 17. A 18. A 19. A 20. B。
Chapter1_Connolly 国际金融
An unanticipated loss
Chapter 1
Page 10
Currencies
Exchange rate risk Translation exposure Accounting requirement: US Federal Accounting Standards Board (FASB) 52 requires conversion of most line items at the current exchange rate to the USD for reporting of income and financs
Exchange rates American quotations vs. European quotations
American: USD per unit of foreign currency
Example: 1.561519 USD for 1 GBP 0.151065 USD per CNY (Chinese yuan)
The banks buy 1 billion USD at 6.36968851 and sell them at 6.38558027. The bid-ask spread: 6.385580276.6968851 = 0.01589176. RMB profits on the 1 billion dollars traded equal 15,891,760.
Chapter 1 Page 13
Operational exchange risk: Nissan
The dollar fell to 80.41 yen against the yen Monday, its lowest since April 1995 and near its record low of 79.75 yen, before rebounding Tuesday. Each one-yen fall in the dollar slashes Nissan's operating profit by 15 billion yen, the company has said. Mr. Shiga declined to comment on whether the company would change its assumption for the dollar for this fiscal year from the current 90 yen, saying only that Nissan will explain further when it reports its July-September earnings on Thursday next week. Nissan said in July that it earned nearly half its expected operating profit for the full fiscal year in the first quarter, but it didn't lift its full-year forecast at the time partly because of the difficult outlook for the yen. The auto maker is reducing exports from Japan while increasing imports as a short-term measure to cope with the strong yen, Mr. Shiga said. The company needs to speed up shifting production overseas in the long term, he added. The car maker plans to produce 1.1 million vehicles in Japan during the current fiscal year through March.
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 1Answers:II. T T F F F T TIII. 1. reserve currency 2. appreciate 3. was pegged to 4. deficit 5. fixed exchange rates 6. floating exchange rates 7. depreciate 8. market forcesIV. 1. Confidence in the ability of the U.S. to redeem dollars for gold began to fall aspotential 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 goldthrough 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 ofthe situation.4.After the collapse of the Bretton Woods System, the task of “rigorous monitoring ”theexchange rate policy of member countries fell on the shoulder of IMF.5.Under normal conditions the stabilizing operations were sufficient to contain short-runfluctuations in a currency ’s price within the required bounds of 1% of par value andthereby maintain a system of fixed exchange rates.Chapter 2Answers: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 internationalflow of commodities, capital and labor is intensifying, thus leading to integration ofinternational markets.1.Often referred to as “financial institutions with a soul ”, credit unions aremember-owned cooperatives that offer checking accounts, savings accounts, creditcards, and consumer loans.2.If you think the price of gold will rise, you can buy a most simple kind of financialderivative which is called “futures ”. If by that time the price really goes up, then youmake a gain. But if you make a wrong guess and the price declines, then you suffer aloss.3.Financial derivatives are financial commodities deriving from such spot marketproducts as interest rate or bond, foreign exchange or foreign exchange rate and stock or stock indexes. There are mainly three types of derivatives: futures, optionsand swaps, each of which involves a mix of financial contracts.panies and investment funds are using basic currency futures and currencyoptions, ones that are regarded as traditional hedging products for investors who want to protect their international assets from sharp gains and declines in currencyprices.Chapter 3Answers ：II. 1. deposit accounts 2. securitization 3. Deregulation 4. consolidation 5. portfolio 6. thrift institutions 7. listing 8. liquidity 9. banking supervision 10. Credit riskIII. 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 riskIV. 1. If a bank ’s base rate was below money market rates, a customer could borrow froma 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 ahaircut by charging the cost to your account.4. As the central bank and under the leadership of the State Council, the People ’s Bankof 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 highefficiency is crucial to a well-operated financial system.Chapter 4 Answers:I. 1 ．integrity 2. pretext 3. released 4. produce 5. facilities 6. obliged 7. alleging8. Claims 9. cleared 10. deliveryI. 1. in favor of 2. consignment 3. undertaking, terms and conditions 4. cleared 5. regardless of 6. obliged to 7. undervalue arrangement 8. on the pretext of 9. refrain from 10. hinges onI V. 1. The objective of documentary credits is to facilitate international payment by makinguse of the financial expertise and credit worthiness of one or more banks.2. In compliance with your request, we have effected insurance on your behalf anddebited your account with the premium in the amount of $1000.3. When an exporter is trading regularly with an importer, he will offer open accountterms.4. Exporters usually insist on payment by cash in advance when they are trading withold customers.5. Cash in advance means that the exporter is paid either when the importer places hisorder or when the goods are ready for shipment.Chapter 5.II．1. b 2. c 3. c 4. a 5. b 6. b 7. a 8. cIII. 1. guaranteed 2. without recourse 3. defaults 4. on the buyer ’s account 5. is equivalent to 6. in question 7. devaluation 8. validity 9. discrepancy 10. inconsistent withChapter 6Answers:II. 1. open account, creditworthiness 2. demand 3. draw on, creditor 4. protest 5. schedule, discrepancies 6. acceptance 7. drawee 8. guranteedIII. 1. collecting bank 2. tenor 3. the proceeds 4. protest 5. deferred payment 6. presentation 7. the maturity date 8. a document of title 9. the shipping documents 10. transshipmentIV. 1. Documentary collection is a method by which the exporter authorizes the bankto collect money from the importer.2. When a draft is duly presented for acceptance or payment but the acceptance orpayment is refused, the draft is said to be dishonored.3. In the international money market, draft is a circulative and transferableinstrument. Endorsement serves to transfer the title of a draft to the transferee.4. A clean bill of lading is favored by the buyer and the banks for financial settlementpurposes.5. Parcel post receipt is issued by the post office for goods sent by parcel post. It isboth a receipt and evidence of dispatch and also the basis for claim and adjustment if there is any damage to or loss of parcels.Chapter 7II. financing, discounting, factoring, forfaiting, without recourse, accounts receivable,factor, trade obligations, promissory notes, trade receivables, specialized.III. 1. a cash flow disadvantage 2. without recourse 3. negotiable instruments 4.promissory notes 5. profit margin 6. at a discount, maturity, credit risk 7. A bill ofexchange, A promissory noteIV. 1. When a bill is dishonored by non-acceptance or by non-payment, the holder t henhas an immediate right of recourse against the drawer and the endorsers.2. If a bill of lading is made out to bearer, it can be legally transferred withoutendorsement.3. The presenting bank should endeavor to ascertain the reasons non-payment ornon-acceptance and advise accordingly to the collecting bank.4. Any charges and expenses incurred by banks in connection with any action forprotection of the goods will be for the account of the principal.5. Anyone who has a current account at a bank can use a cheque.Chapter EightStructure of the Foreign Exchange Market外汇市场的构成1. Key Terms1）f oreign exchange ：“Foreign exchange ”refers to money denominated in the currency of another nation or group of nations.2）p ayment“payment ”is the transmission of an instruction to transfer value that results from a transaction in the economy.3）s ettlement“settlement ”is the final and unconditional transfer of the value specified ina payment instruction.2. True or False1) true 2) true 3) true 4) true3. Cloze1) The dollar is by far the most widely traded currency. In part, thewidespread use of the dollar reflects its substantial international roleas: “investment ”currency in many capital markets, “reserve ”currency held by many central banks, “transaction ”currency in many international commodity markets, “invoice ” currency i n many contracts, and “intervention ”currency employed by m onetary authorities in market operations to influence their own exchange rates.In addition, the widespread trading of the dollar reflects its use as a“vehicle ”currency in foreign exchange transactions, a use that reinforces, and is reinforced by, its international role in trade and finance.2）In foreign exchange trading, London benefits not only from its proximity to major Eurocurrency credit markets and other financial markets, but also from its geographical location and time zone. Inaddition to being open when the numerous other financial centers inEurope are open, London's morning hours overlap with the late hoursin a number of Asian and Middle East markets; London's afternoon sessions correspond to the morning periods in the large North American market. Thus, surveys have indicated that there is more foreign exchange trading in dollars in London than in the United States.4. Discussions1) Tell the reasons why the dollar is the market's most widely tradedcurrency?key points: U.S.A economic background; the leadership of USD inthe world economy ; the role it plays in investment , trade, etc.2) What kind of market is the foreign exchange market?Make reference to the following parts: （8.7 The Market Is Made Up of An International Network of Dealers ）Chapter 91. Key Terms1) spot transaction Instruments 交易工具A spot transaction is a straightforward (or “outright ”) exchange of one currency for another. The spot rate is the current market price, the benchmark price.Spot transactions do not require immediate settlement, or payment “on the spot. ”By convention, the settlement date, or “value date, ”is the second business day after the “deal date ”(or “trade date ”) on which the transaction is agreed to by the two traders. The two-day period providesample time for the two parties to confirm the agreement and arrange the clearing and necessary debiting and crediting of bank accounts in various international locations.2) American termsThe phrase “American terms ”means a direct quote from the point ofview of someone located in the United States. For the dollar, that meansthat the rate is quoted in variable amounts of U.S. dollars and cents perone unit of foreign currency (e.g., $1.2270 per Euro).3) outright forward transactionAn outright forward transaction, like a spot transaction, is a straightforward single purchase/ sale of one currency for another. The only difference is that spot is settled, or delivered, on a value date no later thantwo business days after the deal date, while outright forward is settled onany pre-agreed date three or more business days after the deal date. Dealers use the term “outright forward ”to make clear that it is a single purchase or sale on a future date, and not part of an “FX swap ”.4) FX swapAn FX swap has two separate legs settling on two different value dates,even though it is arranged as a single transaction and is recorded in the turnover statistics as a single transaction. The two counterparties agree to exchange two currencies at a particular rate on one date (the “near date ”) and to reverse payments, almost always at a different rate, on a specified subsequent date (the “far date ”). Effectively, it is a spot transaction and an outright forward transaction going in opposite directions, or else two outright forwards with different settlement dates, and going in opposite directions. If both dates are less than one month from the deal date, it is a “short-dated swap ”; if one or both dates are one month or more from thedeal date, it is a “forward swap. ”5) put-call parity“Put-call parity ”says that the price of a European put (or call) option canbe deduced from the price of a European call (or put) option on the same currency, with the same strike price and expiration. When the strike priceis the same as the forward rate (an “at-the-money ”forward), the put and the call will be equal in value. When the strike price is not the same as the forward price, the difference between the value of the put and the value ofthe call will equal the difference in the present values of the two currencies.2. True or False1) true 2) true 3) true3. Cloze1) Traders in the market thus know that for any currency pair, if thebase currency earns a higher interest rate than the terms currency, thecurrency will trade at a forward discount, or below the spot rate; and ifthe base currency earns a lower interest rate than the terms currency,the base currency will trade at a forward premium, or above the spotrate. Whichever side of the transaction the trader is on, the trader won't gain (or lose) from both the interest rate differential and the forward premium/discount. A trader who loses on the interest rate willearn the forward premium, and vice versa.2) A call option is the right, but not the obligation, to buy the underlyingcurrency, and a put option is the right, but not the obligation, to sell the underlying currency. All currency option trades involve two sides —the purchase of one currency and the sale of another —so thata put to sell pounds sterling for dollars at a certain price is also a call tobuy dollars for pounds sterling at that price. The purchased currency isthe call side of the trade, and the sold currency is the put side of thetrade. The party who purchases the option is the holder or buyer, andthe party who creates the option is the seller or writer. The price at which the underlying currency may be bought or sold is the exercise ,or strike, price. The option premium is the price of the option that thebuyer pays to the writer. In exchange for paying the option premium upfront, the buyer gains insurance against adverse movements in the underlying spot exchange rate while retaining the opportunity to benefit from favorable movements. The option writer, on the other hand, is exposed to unbounded risk —although the writer can (andtypically does) seek to protect himself through hedging or offsetting transactions.4. Discussions1) What is a derivate financial instrument? Why is traded?2) Discuss the differences between forward and futures markets inforeign currency.3) What advantages do foreign currency futures have over foreigncurrency options?4) What is meant if an option is “in the money ”, “out of the money ”,or “at the money ”?5) What major international contracts are traded on the ChicagoMercantile Exchange ? Philadelphia Stock Exchange?Chapter 101. Key Terms Managing Risk in Foreign Exchange Trading 外汇市场交易的风险管理1) Market riskMarket risk, in simplest terms, is price risk, or “exposure to (adverse) price change. ”For a dealer in foreign exchange, two major elements of market risk are exchange rate risk and interest rate risk —that is, risks of adverse change in a currency rate or in an interest rate.2) VARVAR estimates the potential loss from market risk across an entire portfolio, using probability concepts. It seeks to identify the fundamental risks that the portfolio contains, so that the portfolio can be decomposedinto underlying risk factors that can be quantified and managed. Employing standard statistical techniques widely used in other fields, and based in part on past experience, VAR can be used to estimate the daily statistical variance, or standard deviation, or volatility, of the entire portfolio. On thebasis of that estimate of variance, it is possible to estimate the expectedloss from adverse price movements with a specified probability over a particular period of time (usually a day).3) credit riskCredit risk, inherent in all banking activities, arises from the possibilitythat the counterparty to a contract cannot or will not make the agreed payment at maturity. When an institution provides credit, whatever the form, it expects to be repaid. When a bank or other dealing institution enters a foreign exchange contract, it faces a risk that the counterparty willnot perform according to the provisions of the contract. Between the timeof the deal and the time of the settlement, be it a matter of hours, days, ormonths, there is an extension of credit by both parties and an acceptanceof credit risk by the banks or other financial institutions involved. As in thecase of market risk, credit risk is one of the fundamental risks to be monitored and controlled in foreign exchange trading.4) legal risksThere are legal risks, or the risk of loss that a contract cannot be enforced, which may occur, for example, because the counterparty is not legally capable of making the binding agreement, or because of insufficient documentation or a contract in conflict with statutes or regulatory policy.2. True or False1) True 2) true3. Translation1) Broadly speaking, the risks in trading foreign exchange are thesame as those in marketing other financial products. These risks canbe categorized and subdivided in any number of ways, depending onthe particular focus desired and the degree of detail sought. Here, thefocus is on two of the basic categories of risk —market risk and credit risk (including settlement risk and sovereign risk) —as they apply to foreign exchange trading. Note is also taken of some other importantrisks in foreign exchange trading —liquidity risk, legal risk, and operational risk2) It was noted that foreign exchange trading is subject to a particularform of credit risk known as settlement risk or Herstatt risk, which stems in part from the fact that the two legs of a foreign exchange transaction are often settled in two different time zones, with differentbusiness hours. Also noted was the fact that market participants andcentral banks have undertaken considerable initiatives in recent yearsto reduce Herstatt risk.4. Discussions2) Discuss the way how VAR works in measuring and managingmarket risk?3) Why are banks so interested in political or country risk?4) Discuss other forms of risks which you know in foreign exchange.Chapter 11The Determination of Exchange Rates汇率的决定1. Key Terms1) PPPPurchasing Power Parity (PPP) theory holds that in the long run, exchange rates will adjust to equalize the relative purchasing power of currencies. This concept follows from the law of one price, which holds thatin competitive markets, identical goods will sell for identical prices when valued in the same currency.2) the law of one priceThe law of one price relates to an individual product. A generalization ofthat law is the absolute version of PPP, the proposition that exchange rates will equate nations' overall price levels.3) FEER“fundamental equilibrium exchange rate, ”or FEER, envisaged as the equilibrium exchange rate that would reconcile a nation's internal and external balance. In that system, each country would commit itself to a macroeconomic strategy designed to lead, in the medium term, to “internal balance ”—defined as unemployment at the natural rate and minimal inflation —and to “external balance ”—defined as achieving the targeted current account balance. Each country would be committed to holding its exchange rate within a band or target zone around the FEER, or the level needed to reconcile internal and external balance during the intervening adjustment period.4) monetary approachThe monetary approach to exchange rate determination is based onthe proposition that exchange rates are established through the process of balancing the total supply of, and the total demand for, the national moneyin each nation. The premise is that the supply of money can be controlledby the nation's monetary authorities, and that the demand for money has a stable and predictable linkage to a few key variables, including an inverserelationship to the interest rate —that is, the higher the interest rate, the smaller the demand for money.5) portfolio balance approachThe portfolio balance approach takes a shorter-term view of exchange rates and broadens the focus from the demand and supply conditions for money to take account of the demand and supply conditions for other financial assets aswell. Unlike the m onetary approach, the portfolio balance approach assumes that domestic and foreign bonds are not perfect substitutes. According to the portfolio balance theory in its simplest form, firms and individuals balance their portfolios among domestic money, domestic bonds, and foreign currency bonds, and they modify their portfolios as conditions change. It is the process of equilibrating the total demand for, and supply of, financial assets in each country that determinesthe exchange rate.2. True or False1) true 2) true3. Cloze1）PPP is based in part on some unrealistic assumptions: that goods are identical; that all goods are tradable; that there are notransportation costs, information gaps, taxes, tariffs, or restrictionsof trade; and —implicitly and importantly —that exchange rates areinfluenced only by relative inflation rates. But contrary to theimplicit PPP assumption, exchange rates also can change forreasons other than differences in inflation rates. Real exchangerates can and do change significantly over time, because of suchthings as major shifts in productivity growth, advancesin technology, shifts in factor supplies, changes in marketstructure, commodity shocks, shortage, and booms.2） Each individual and firm chooses a portfolio to suit its needs, based on a variety of considerations —t he holder's wealth and tastes, thelevel of domestic and foreign interest rates, expectations of futureinflation, interest rates, and so on. Any significant change in theunderlying factors will cause the holder to adjust his portfolio andseek a new equilibrium. These actions to balance portfolios willinfluence exchange rates.4. Discussions1）How does the purchasing power parity work?2）D escribe and discuss one model for forecasting foreign exchange rates.3）M ake commends on how good are the various approaches mentioned in the chapter.4）C entral banks occasionally intervene in foreign exchange markets. Discuss the purpose of such intervention. How effective is intervention?Chapter 121. Key Terms 1）money market The Financial Markets 金融市场The money market is really a market for short-term credit, or the option to use someone else's money for a period of time in return for the payment of interest. The money market helps the participants in the economic process cope with routine financial uncertainties. It assists in bridging the differences in the timing of payments and receipts that arise in a market economy.2）c apital marketMarkets dealing in instruments with maturities that exceed one year are often referred to as capital markets.3）p rimary marketThe term “primary market ”applies to the original issuance of a credit market instrument. There are a variety of techniques for such sales,including auctions, posting of rates, direct placement, and activecustomer contacts by a salesperson specializing in the instrument4）secondary marketOnce a debt instrument has been issued, the purchaser may be able to resell it before maturity in a “secondary market. ”Again, a number of techniques are available for bringing together potential buyers andsellers of existing debt instruments. They include various types of formal exchanges, informal telephone dealer markets, and electronic trading through bids and offers on computer screens. Often, the same firms that provide primary marketing services help to create or “make ”secondary markets.5）RPsIn addition to making outright purchases and sales in the secondary market, entities with money to invest for a brief period can acquire a security temporarily, and holders of debt instruments can borrow shortterm by selling securities temporarily. These two types of transactionsare repurchase agreements (RPs) and reverse RPs, respectively. In the wholesale market, banks and government securities dealers offer RPsat competitive rates of return by selling securities under contracts providing for their repurchase from one day to several months later6）BAs 7）CDs (reference to 13.1)8）EurodollarEurodollars are U.S. dollar deposits at banking offices in a country other than the United States.9）EurobankEurobanks —banks dealing in Eurodollar or some other nonlocalcurrency deposits, including foreign branches of U.S. banks —originally held deposits almost exclusively in Europe, primarily London. Whilemost such deposits are still held in Europe, they are also held in suchplaces as the Bahamas, Bahrain, Canada, the Cayman Islands, HongKong, Singapore, and Tokyo, as well as other parts of the world.10） LIBOR (reference to 13.2.2 Certificates of Deposit)London inter-bank offer rate11） mortgage-backed securities12） Eurobond market (details make reference to13.3.3 )The Eurobond market, centered in London, is an offshore market in intermediate- and long-term debt issues. It serves as a source of capital for multinational corporations and for foreign governments. It developed afterthe United States instituted the interest equalization tax in 1963 to stemcapital outflows inspired by relatively low U.S. interest rates.2. True or False1) true 2) true 3) true3. Discussions1) Describe the characteristics of Interest Rate Swap and the role of itin the bank-related financial market.2) What risks are encountered in the swaps markets?3) Discuss one or two specific examples of derivative products andtheir use.4. Translations1) Markets dealing in instruments with maturities that exceed one yearare often referred to as capital markets, since credit to finance investmentsin new capital would generally be needed for more than one year. The time division is arbitrary. A long-term project can be started with short-term credit, with additional instruments may need to be renewed before a project is completed. Debt instruments that differ in maturity share other characteristics. Hence, the term “capital market ”could be –and occasionally is applied to some shorter maturity transactions.2) The secondary market for Treasure securities consists of a networkof dealers, brokers, and investors who effect transactions either by telephone or electronically. Telephone trades are generally between dealers and their customers. Electronics trading is arranged through screen-based systems provided by some of the dealers to their customers.It allows selected trades to take place without a conversation. When dealers trade with each other, they generally use brokers. Brokers provide information on screen, but the final trades are made by telephone.Chapter 13Concepts of Financial Assets Value金融资产价值的概念1. Key Terms1) absolute measure of valueAn absolute measure of value is used when one must compare itto a nominal amount: purchase price, amount to invest, target sum ofmoney to raise2) relative measure of valueA relative measure of rate of return is more convenient to use whenone wishes to compare one financial asset to a set of numerous alternative assets. A rate of return is the most commonly used relative measure ofvalue.3) discountingFuture benefits must be discounted (or converted) to their present (or today's) value, before they are summed. Discounting is part of the study oftime value of money, or actuarial mathematics, and a complete treatmentof it can be found in specialized textbook.4) time value of money。
国际金融练习题答案Chapter 1 Globalization and the Multinational Enterprise exercise answer
Chapter 1Globalization and the Multinational Enterprise1.1Multiple Choice and True/False Questions1) Which of the following are critical to a firm trying to reach the top of the "firm value pyramid"?A)an open market placeB) high quality strategic managementC) access to capitalD) all of the above2) A well-established, large firm U.S.-based MNE will probably not be able to overcome which of the following obstacles to maximizing firm value?A) an open market placeB) high quality strategic managementC)access to capitalD)none of the above3)Three necessary conditions for a firm to reach the top of the "firm value pyramid" are an open market place, high quality strategic management, and access to capital.4)A well-established, large China-based MNE will probably be most adversely affected by which of the following elements of firm value?A) an open marketplaceB) high-quality strategic managementC)access to capitalD)access to qualified labor pool5)A well-established, large, Brazil-based MNE will probably be most adversely affected by which of the following elements of firm value?A) an open marketplaceB)high-quality strategic managementC)access to capitalD)access to qualified labor pool6)The theory that suggests specialization by country can increase worldwide production is ________.A)the theory of comparative advantageB) the theory of foreign direct investmentC) the international Fisher effectD)the theory of working capital management7)Which of the following would NOT be a way to implement comparative advantage?A)IBM exports computers to Egypt.B)Computer hardware is designed in the United States but manufactured and assembled in Korea.C)Water of the greatest purity is obtained from wells in Oregon, bottled, and exported worldwide.D) All of the above are examples of ways to implement comparative advantage.8) Which of the following would NOT be considered a feature of comparative advantage?A)Exporters in Country A sell goods or services to unrelated importers in Country B.B) Firms in Country A specialize in making products that can be produced relatively efficiently, given County A's endowment of factors of production. Firms in Country B do likewise thus maximizing the combined output of Countries A and B.C)Trade exists between Counties A and B because of specialized factors of production that cannot be moved among countries.D) All of the above are features of comparative advantage.9)Of the following, which would NOT be considered a way that government interferes with comparative advantage?A)tariffsB)managerial skillsC)quotasD)other non-tariff restrictions10)Comparative advantage shifts over time as less developed countries become more developed and realize their latent opportunities.11) Comparative advantage was once the cornerstone of international trade theory, but today it is archaic, simplistic, and irrelevant for explaining investment choices made by MNEs.12)In determining why a firm becomes multinational there are many reasons. One reason is that the firm is a market seeker. Which of the following is NOT a reason why market seeking firms produce in foreign countries?A)satisfaction of local demand in the foreign countryB)satisfaction of local demand in the domestic marketsC)political safely and small likelihood of government expropriation of assetsD)All of the above are market-seeking activities.13) ________ investments are designed to promote and enhance the growth and profitability of the firm. ________ investments are designed to deny those same opportunities to the firm's competitors.A)Conservative; aggressiveB)Defensive; proactiveC)Proactive; defensiveD)Aggressive; proactive14) Which of the following is NOT considered to be a type of competitive advantage that may be enjoyed by an MNE?A) managerial and marketing expertiseB) superior technology due to investment in research and developmentC)increased agency costsD) differentiated products15)Which of the following is NOT considered to be a type of competitive advantage that may be enjoyed by an MNE?A) competitiveness in their home marketsB) foreign exchange risksC) economies of scaleD) economies of scope16) The phase of the globalization process characterized by imports from foreign suppliers and exports to foreign buyers is called theA)domestic phase.B) multinational phase.C) international trade phase.D) import-export banking phase.17) The authors describe the multinational phase of globalization for a firm as one characterized by theA)ownership of assets and enterprises in foreign countries.B) potential for international competitors or suppliers even though all accounts are with domestic firms and are denominated in dollars.C) imports from foreign suppliers and exports to foreign buyers.D) requirement that all employees be multilingual.18) Of the following, which was NOT mentioned by the authors as an increase in the demands of financial management services due to increased globalization by the firm?A) evaluation of the credit quality of foreign buyers and sellersB)foreign consumer method of payment preferencesC) credit risk managementD)evaluation of foreign exchange risk19)The authors describe the multinational phase of globalization for a firm as one characterized by theA) ownership of assets and enterprises in foreign countries.B) potential for international competitors or suppliers even though all accounts are with domestic firms and are denominated in dollars.C) imports from foreign suppliers and exports to foreign buyers.D) requirement that all employees be multilingual.20) Of the following, which was NOT mentioned by the authors as an increase in the demands of financial management services due to increased globalization by the firm?A)evaluation of the credit quality of foreign buyers and sellersB) foreign consumer method of payment preferencesC) credit risk managementD)evaluation of foreign exchange risk21) Typically, a firm in its domestic stage of globalization has all financial transactions in its domestic currency.22)A firm in the International Trade Phase of GlobalizationA)makes all foreign payments in foreign currency units and all foreign receipts in domestic currency units.B)receives all foreign receipts in foreign currency units and makes all foreign payments in domestic currency units.C) bears direct foreign exchange risk.D) none of the above.23) The exposure to foreign exchange risk known as Translation Exposure may be defined asA) changes in reported owners' equity in consolidated financial statements caused by 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 change in expected future cash flows arising from an unexpected change in exchange rates.D)all of the above.24)The twin agency problems limiting financial globalization are caused by these two groups acting in their own self-interests rather than the interests of the firm.A)rulers of sovereign states and unsavory customs officialsB) corporate insiders and attorneysC) corporate insiders and rulers of sovereign statesD) attorneys and unsavory customs officialsChapter 1 Globalization and the Multinational Enterprise exercise answer1、A 2 、D 3、T 4、A 5、C 6、A 7、D 8、D 9、B 10、T 11、F 12、C13、C 14、C 15、B 16、C 17、A 18、B 19、A 20、B 21、T 22、C 23、A 24、C25、C 26、B 27、C 28、A 29、A 30、CTABLE 1.1Use the information in the table to answer following question(s).25) Refer to Table 1.1. A production unit in Austria has a/an ________ over a production unit in Russia in ________.A) absolute disadvantage; digital camerasB) absolute disadvantage; snowboardsC) absolute advantage; both cameras and snowboardsD) none of the above26) Refer to Table 1.1. Austria has a larger relative advantage over Russia in the production of ________ at a ratio of ________.A) snowboards; 5 to 4B) cameras; 8 to 3C) snowboards; 8 to 3D) cameras; 3 to 827) Refer to Table 1.1. Assume no trade between Russia and Austria. If each country put 50% of their production units into each product, the total number of snowboards and digital cameras produced by the two countries combined are ________ and ________.A) 15,000 snowboards; 3,000 digital camerasB) 6,000 snowboards; 4,000 digital camerasC) 2,750 digital cameras; 6,750 snowboardsD) 15,000 digital cameras; 1,000 snowboards28) Refer to Table 1.1. If trade takes place at Brazil's domestic price, ________ snowboards will be required to obtain 1 digital camera.A) 4B) 2 and 2/3C) 1.25D) 0.2529) Refer to Table 1.1. If each country specializes in their production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of three snowboards per digital camera, how many cameras and snowboards will be available to be consumed in Austria if they trade 3,000 cameras to Russia?A) 9,000 snowboards and 5,000 digital camerasB) 3,000 snowboards and 3,000 digital camerasC) 3,000 snowboards and 9,000 digital camerasD) There is not enough information to answer this question.30) Refer to Table 1.1. If each country specializes in their production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of three snowboards per digital camera, how many cameras and snowboards will be available to be consumed in Russia if they trade 9,000 snowboards to Austria?A) 9,000 snowboards and 5,000 digital camerasB) 3,000 snowboards and 3,000 digital camerasC) 3,000 snowboards and 9,000 digital camerasD) There is not enough information to answer this question.。
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International FinanceAssignment Problems (1) Name: Student No.: Choose the correct answer for the following questions (only ONE correct answer) 1. Which of the following is NOT true regarding the subject matter of international finance?A. International finance studies the important trade theories.B. International finance examines the theory of balance of payments and its relationship with macroeconomic variables.C. International finance studies exchange rate theories and the impacts of the exchange rate on the economy.D. International finance discusses the exchange rate risks and the derivative instruments by which people use to cover the exchange rate risks and to speculate.2. Globalization refers to __________.A. the strengthening of existing international linkages of commerce, finance and the addition of new international linkagesB. the expansion of world governance and global societyC. the increased mobility of peoples and informationD. All of the above3. Mutually beneficial trade requires each country to be the least-cost producer of at least one good that it can export to its trading partner. This is called __________.A. the theory of comparative advantageB. the international finance theoryC. the theory of absolute advantageD. the theory of balance of payments4. Which of the following would NOT be a way to implement comparative advantage?A. IBM exports computers to Gambia.B. Computer hardware is designed in the United States but manufactured and assembled in Malaysia.C. Water of the greatest purity is obtained from the wells in Oregon, bottled, and exported worldwide.D. All of the above are examples of ways to implement comparative advantage.5. Which of the following would NOT be considered a feature of comparative advantage?A. Exporters in country A sell goods to importers in countryB.B. Firms in country A specialize in making products that can be produced relativeefficiently, given country A’s endowment of factors of production. Firms in country B do likewise thus maximizing the combined output of countries A and B.C. Trade exists between countries A and B because of specialized factors of production that cannot be moved among countries.D. All of the above are features of comparative advantage.6. The real sector in an economy deals with __________.A. transactions in all goods and servicesB. transactions in all financial assetsC. transactions in goods, services and financial assetsD. transactions in new technological products only7. Of the following, which would NOT be considered a way that government interferes with comparative advantage?A. tariffsB. quotasC. managerial skillsD. other non-tariff restrictions8. A firm with operations in more than one country is called a (an) _________.A. big firmB. multinational corporationC. international firmD. all of the above9. The primary goal of an MNC comes down to __________.A. seek marketsB. improve its production efficiencyC. gain access to technology or managerial expertiseD. maximize shareholder wealth10. World trade of goods and services has expanded in a remarkable pace because of the __________.A. reduction in trade barriersB. lower transportation costsC. advances in telecommunications, information technology and financial servicesD. All of the above are the reasons of rapid growth in international trade.11. Nowadays the world trade in goods and services is important __________.A. only to developed countriesB. only to less developed countriesC. to both developed and less developed countriesD. to neither developed nor less developed counties12. Which of the following is NOT a characteristic of the nowadays financial markets?A. Increasingly interdependent national financial marketsB. the global trend toward free-market economiesC. An increasingly number of cross-border partnerships, including many international merges, acquisitions, and joint venturesD. An increasing number of cooperative linkages among securities exchange13. __________ indicates that mutually beneficial trade can occur even when one nation is absolutely more efficient in the production of all goods.A. The theory of comparative advantageB. The theory of absolute advantageC. The theory of balance of paymentsD. The theory of exchange rate determination14. A well-established multinational company needs __________ to maximize its firm value.A. an open market placeB. high quality strategic managementC. access to capitalD. all of the aboveQuestions 15 through 20 are based on the information presented in table 1.1:Table 1.1Production capabilityContainers of snowboards Containers of digital cameras Austria has 1,000 units 15 containers/unit 8 containers/unitof production factorsRussia has 1,000 units 12 containers/unit 3 containers/unitof production factors15. One production factor in Austria has a (an) __________ over one production factor in Russia in _________.A. absolute disadvantage; digital camerasB. absolute disadvantage; snowboardsC. absolute advantage; both digital cameras and snowboardsD. none of the above16. Austria has a large comparative advantage over Russia in the production of __________ at a ratio of __________.A. snowboards; 5:4B. digital cameras; 8:3C. snowboards; 8:3D. digital cameras; 5:417. Assume no trade between Austria and Russia. If each country puts 50% of their factors into each product, the total number of snowboards and digital cameras produced by the two countries combined are __________ and _________.A. 13,500 snowboards; 5,500 camerasB. 12,000 snowboards; 8,000 camerasC. 5,500 snowboards; 13,500 camerasD. 3,000 cameras; 15,000 snowboards18. If trade takes place at Russia’s domestic price, __________ snowboards will be required to obtain 1 digital camera.A. 4B. 2.5C. 1.25D. 0.2519. If each country specializes in production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of 3 snowboards per digital camera, how many cameras and snowboards will be available to be consumed in Austria if they trade 3,000 cameras to Russia?A. 9,000 snowboards and 5,000 camerasB. 3,000 snowboards and 3,000 camerasC. 3,000 snowboards and 9,000 camerasD. There is not enough information to answer this question20. If each country specializes in production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of 3 snowboards per digital camera, how many cameras and snowboards will be available to be consumed in Russia if they trade 9,000 snowboards to Austria?A. 9,000 snowboards and 5,000 camerasB. 3,000 snowboards and 3,000 camerasC. 3,000 snowboards and 9,000 camerasD. There is not enough information to answer this questionAnswers to Assignment Problems (1)1. A2. D3. C4. D5. D6. A7. C8. B9. D 10. D11.C 12.B 13.A 14.D 15. C 16. B 17. A 18. A 19. A 20. B。