- If a currency is at a forward premium by as much as its interest rate is lower than the interest rate in the other country, covered interest parity holds. （ ）
- “Dollarization” can be classified as a form of a fixed exchange rate.（ ）
- Exports depend on income in the exporting country and on the relative prices between the exporting and importing countries.（ ）
- If the domestic interest rate increases, while the foreign interest rate and the expected spot exchange rate remain constant, the return comparison shifts in favor of investments in bonds denominated in the foreign currency.（ ）
- For a country with a fixed exchange rate and no sterilization: When the FE curve is steeper than the LM curve, a negative domestic spending shock to the IS curve creates a balance of payments surplus, which then causes the LM curve to shift to the right.（ ）
- At present, the majority of a nation’s official reserve transactions are done by using foreign exchange assets instead of gold.（ ）
- Exchange rates are much more volatile in the long-run than in the short-run.（ ）
- The cash flows under a futures contract should be settled on a daily basis with a marking to market system.（ ）
- If a country's currency is a reserve currency, then intervention in the foreign exchange market to maintain a pegged exchange rate is unnecessary.（ ）
- Government officials wanting to defend a fixed exchange rate may not have sufficient reserves of foreign currency to keep the price fixed indefinitely. （ ）
- Exchange rates are equalized in different locations due to( )
- Assume that the FE curve is flatter than the LM curve. A negative external capital-flow shock shifts the FE curve left. Under zero sterilization, which one of the following will happen next? ( )
- Everything else remaining unchanged, the effect of domestic spending shocks on a country with a floating exchange rate differs depending on:（ ）
- Under a floating exchange rate regime, the loose monetary policy carried out by the monetary official will( ).
- Company X is a perfume manufacturer and one of its popular products involves rosewood. It is deeply concerned with the market price fluctuations of rosewood. To protect this, it enters into a contract which would allow the company to buy rosewood at a specific price at a given future date. This is an example of( )
- Which of the following statements with respect to the implications of the defense of fixed exchange rate regime is accurate? ( )
- The central feature of the Bretton Woods system was( )
- The exchange rate set for an immediate trade is often referred to as a( )
- The _____ measures the sum of the current account balance plus the nonofficial financial account balance.( )
- Whenever the official settlements balance is in _____, there can be an increase in domestic official holdings of reserve assets or a decrease in foreign official holdings of domestic assets.( )
- Everything else remaining unchanged, an increase in interest rates in the United States is most likely to result in:( )
- Which of the following is NOT one of the rules for a gold standard? ( )
- In a _____ exchange rate system the government or central bankers intervene to keep the exchange rate virtually steady.( )
- Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. Which of the following interventions will stem the pressures for depreciation of the pound? ( )
- Other things equal, the domestic currency _____ when the domestic money supply increases relative to the foreign money supply.( )
- _____ is buying a country's currency spot and selling that country's currency forward, to make a net profit from the combination of the difference in interest rates between countries and the forward premium on the country's currency.( )
- Every international exchange of value is entered into the balance-of-payments accounts _____ time(s).( )
- For a country with a fixed exchange rate that is running continuous overall payments surpluses( )
- The international investment position is a statement of_____. ( )
- If the marginal propensity to save is 0.3 and the marginal propensity to import is 0.2, then value of the simple spending multiplier is( )
- For an investor who starts with dollars and wants to end up with dollars in the future, which of the following choices is an example that includes hedging?( )
- Other fundamental things equal, a decrease in the exchange rate value of domestic currency will cause the current account to:（ ）
- With a(n) _____, the government allows the market to determine the exchange rate of a currency. ( )
- Under a floating exchange rate regime with a high degree of capital mobility, a change in the exchange rate value of domestic currency following contractionary fiscal policy is most likely to:（ ）
- Which one of the following is NOT a way for a country to defend its fixed exchange rate? ( )
- A debit item in the balance of payments is ( )
- For a country with a floating exchange rate and, initially, an overall payments balance of zero, if the country implements expansionary monetary policy, the LM curve will shift to the _____ which will lead to the country's currency to __________.（ ）
- Assume that the dollar exchange rate against euro is two dollars per euro, while the dollar exchange rate against Japanese yen is 50 cents per yen. On the basis of the two given exchange rates, the yen per euro exchange rate is_____.( )
- The LM curve has a:（ ）
- In a _____ contract you can effectively lock in the price at which you buy or sell a foreign currency at a set date in the future.( )
- An import-export business that finds itself in a “short” foreign-currency position risks a financial loss if( )
- Which of the following can be considered as domestic assets of a country’s central bank? ( )
- The quantity theory of demand for money posits that the preference for holding money is _________. ( )
- Assume you are an American importer who must pay 500,000 euros at the end of 90 days when you receive 1,000 cases of French wine at your warehouse in New York. If you do not hedge this transaction, you face exchange-rate risk. The best way to remove the risk of loss due to currency fluctuations is to( )
- The initial impact of _____ the money supply _____ the balance of payments. ( )
- The money like assets that are held by governments and that are recognized by governments as fully acceptable for payments between them are_______.( )
- Suppose that U.S. prices rise 4 percent over the next year while prices in Mexico rise 6 percent. According to the purchasing power parity theory of exchange rates, which of the following should happen?( )
- In the foreign exchange market, what could be a possible consequence of an increase in the purchase of stocks of Toyota, a Japanese automobile firm, by the U.S. residents?( )
- Which of the following statements is true? （ ）
- Action to reverse the effect of official intervention on the domestic money supply is called( )
- The greater the degree of international capital mobility:( )
- The effect of international trade shocks on internal economy in a country with a floating exchange rate regime is _____ by the resulting change in the _____.（ ）
- _____ are in place when a country's government places restrictions on the conversion of the domestic currency into foreign currency or vice versa. ( )
- The retail foreign exchange transactions do not occur between bank traders and_______. （ ）
- Under a floating exchange rate system, the value of the dollar per euro exchange rate rises when( )
- Following an expansion of the money supply, a government committed to maintaining a fixed exchange rate must:（ ）
- Official intervention in the foreign exchange market to defend a fixed exchange rate when the value of the country’s currency is under downward pressure causes:( )
- Under a floating exchange rate regime:（ ）
- If the price of British pounds in terms of the U.S. dollars is $1.80 per pound, then the price of U.S. dollars in terms of British pounds is( )
- Consider a country that has an official settlements balance surplus and is experiencing upward pressure on the exchange rate value of its currency. Which of the following will NOT be true in this context? ( )
- Foreign subsidiaries can raise internal sources of funds from the following party or parties except ( ).
- Packing loan is a pre-shipment financing facility made by the exporter’s bank to the exporter on the instruction of the issuing bank.（ ）
- Which of the following parties is not a principal party of a BOT finance?
- Seasoned public offering is referred to as the subsequent issue of additional shares to the general public after initial floatation，which is also called the follow-on offerings.（ ）
- In the case of accounts receivable pledging, the ownership of the accounts receivable still rests with the seller, while in the case of accounts receivable factoring, the ownership of it is transferred to the factor.（ ）
- In the case of ( ) letters of credit, the beneficiary( the exporter) can be paid at sight, although it issues usance draft ( s ).
- The term “forfaiting” is derived from the French “ a forfait”, which means ( ).
- The finance of negotiation in connection with documentary credit is also known as ( ).
- A Panda bond is a Chinese-yuan-denominated bond issued in China by a Chinese issuer.（ ）
- Documentary credit is usually issued in favor of a customer known as ( ).
- From the perspective of the parent company, multinational capital budgeting involves the following complexities except ( ).
- Payback period refers to number of years necessary for the future cash flows from the capital budgeting project to recoup its initial outlay.（ ）
- Which of the following techniques is not the discounted-cash-flow criterion used to make multinational capital budgeting decisions?
- International investment usually does not involve ( ) risk.
- Certainty equivalent approach is a method of incorporating risk into international capital budgeting project by adjusting the future cash flows arising from it downward.（ ）
- Suspension option grants the multinational corporation an optional right to determine whether to shut down the international capital budgeting project.
- Which of the following examples is least likely political risk.
- Multinational capital budgeting is usually examined from two perspectives, including the viewpoint of the parent company and that of the host government.（ ）
- Optimal international portfolio is the ( ).
- As far as the parent viewpoint analysis is concerned, the additional risk that stems from its foreign projects can be measured in at least two ways: adjusting the discount rates or adjusting the life of the project.（ ）
- Suppose the interest rate on 6-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States. Also, today’s spot exchange price of the pound is $2.00 while the 6-month forward exchange price of the pound is $1.98. By investing in U.K. treasury bills rather than U.S. treasury bills, and covering exchange-rate risk, U.S. investors earn an approximate extra return for 6 months of:
- Operating exposure is more likely known as ( ) exposure.
- The change in the future cash flows which have not been contracted for as a result of the random changes in exchange rate is known as ( ).
- If Canada has a current 90 day forward exchange rate value for its currency that is above the current spot exchange rate value of its currency, then the Canadian 90-day interest rate is relatively high.（ ）
- A swap bank provides an AA-rated company X and a BB-rated company Y with a five-year swap quotation of 2.5%-3% against LIBOR. The means:
- If the expected future spot rate is lower than the breakeven exchange rate, ( ) will be more desirable for multinational corporations to hedge against the transaction exposure arising from holding foreign-currency denominated accounts payable.
- For an investor who starts with dollars and wants to end up with dollars in the future, which of the following choices is an example that includes speculating?
- The profits and losses on a futures contract accrue to you daily, as the contract is “marked to market” daily.（ ）
- As for the seller of call option, if the future spot rate is higher than the strike price, the option will be known as ( ) option.
- Translation of the financial statements prepared by the foreign subsidiaries from their respective local currencies into the home currency of the parent company is usually done by two methods, including ( ) .
- There are limits to the ability of monetary authorities to use sterilized intervention in the case of a deficit because:
- Assume that the exchange rates are fixed. When money demand is less sensitive to interest rate changes than are international capital flows, _____ policy will be _____ effective than when money demand is more sensitive to interest changes than are international capital flows.
- For small open economy, assume that the marginal propensity to import is 0.3, and that interest rates, exchange rates, and the price level are all constant. If an increase of $10 billion in government spending results in an increase of $6 billion in imports, then:
- Which of the following statements is true？
- A central bank can sterilize the increase in the money supply that results from an intervention to defend a fixed exchange rate by selling domestic government bonds.（ ）
- The locomotive theory posits that growth in one or more large countries:
- International crowding out is the tendency of expansionary fiscal policy to appreciate the country’s currency and worsen the current account.（ ）
- Perfect capital mobility implies:
- With floating exchange rates, the effects of international trade shocks on internal balance are _____ by the effects of the resulting change in the _____.
- The demand for money is:
- The Bretton Woods System is exposed to a dilemma known as _______.
- To maintain an undervalued currency, the country’s monetary authorities must intervene in the foreign exchange market to buy its currency in the foreign exchange market.（ ）
- Under a floating exchange rate system, an increase in the international demand for electronic appliances manufactured in Japan will result in:
- Based on PPP and the quantity theory of money, everything else remaining unchanged, if Japan’s real income rises relative to real income in the U.S., there would be a(n):
- The _____ effect suggests that speculations can sometimes be destabilizing as the actions of the international investors move the exchange rate away from the long-run equilibrium value consistent with fundamental economic influences.
- Suppose the dollar per pound exchange rate is $2 per pound while the dollar per Swiss franc exchange rate is 50 cents per franc. From the given information we can conclude that the Swiss franc per pound exchange rate is:
- The retail part of the foreign exchange market does not include traders at banks trading with:
- Assume you are a Chinese exporter and expect to receive $250,000 at the end of 60 days. You can remove the risk of loss due to a devaluation of the dollar by:
- Price-specie-flow mechanism posits that the misalignment of exchange rate under the classical gold standard can be automatically corrected.（ ）
- Rapid increases in the U.S. exports of goods and services will result in a(n) _____ foreign currency and a(n) _____ the U.S. dollars in the foreign exchange market.
- Which of the following would tend to contribute to a U.S. current account surplus?
- Marshall-Lerner condition is that the payments deficit will be improved as a result of currency depreciation only if_______ .
- If the balance of payments accounts of a country shows a current account deficit, it means that:
- The net flow of financial assets and similar claims is the private current account balance.（ ）
- According to the absorption approach to balance of payments, if a nation’s national income is less than its national expenditure, it will ________.
- A statement of the stocks of a country’s foreign assets and foreign liabilities at a point in time represents the country’s:
- A country's nonofficial financial account balance equals its net foreign investment.（ ）
- If the overall balance in the balance of payments account is in _____, there can be an accumulation of official reserve assets by the country or a decrease in foreign official reserve holdings of the country's assets.
- Official reserve assets are：
- The J curve shows that:
- Which of the following statements incorrectly describes China?
- The feasibility of the international capital budgeting decision can only be determined from the parent company viewpoint.（ ）
- Multinational corporations usually are exposed to three typical kinds of foreign exchange exposure, such as_______.
- From the perspective of microeconomics, the practices of international finance leastly likely involves_________.
- The objective of international portfolio management is _______.
- Libra white paper initially introduced by Facebook on June 18th,2019 shows that Libra is most likely ______.
- Which of the following managements least likely represents the dimension of macroeconomic analysis of international finance?
- Multinational corporations can conduct financial transactions or use operational techniques to manage foreign exchange exposure.（ ）
- A nation’s macroeconomic performance involves the performance of three markets such as ________.
- The recent global economy is experiencing the three-low situation such as ________ .
答案:对
答案:对
答案:错
答案:错
答案:对
答案:对
答案:错
答案:对
答案:错
答案:对
答案:arbitrage.
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