国际金融习题8

PAGE1PAGE1重庆工商大学财政金融学院陶庆梅制作InternationalFinance:byElinorTaoQingmeiIMULTIPLECHOICE(20points)Identifytheletterofthechoicethatbestcompletesthestatementoranswersthequestion.Eachquestionisworth2points.Pleaseputyouranswerintothefollowingform.1、Whenbookkeepingnationalincome,()enterGNPA.thesaleofadeskB.thesaleofachairC.thesaleofacupD.thesaleofausedtextbook2GrossDomesticProduct()Measuresthevolumeofproductinwithinaborders.PlusesnetreceiptsoffactorincomefromtherestoftheworldequalsGNP.Doesnotcorrectfortheportionofcountries’productioncarriedoutusingservicesprovidedbyforeign-ownedcapital.PlusestheincomedomesticresidentsearnonwealththeyholdinothercountriesminusesthepaymentsdomesticresidentsmaketoforeignownersofwealthlocatedathomeequalsGNP.3、Acountry’sprivatesavingcantakeformsas()taxesInvestmentindomesticcapitalPurchasesofwealthfromforeignersPurchasesofthedomesticnewlyissued4、Themajoractorsintheforeignexchangemarketare()Acommercialbanks Bcorporations Cnonbankfinancialinstitutions Dcentralbanks5、Aggregatemoneydemandisdeterminedby()Atheinterestrate Bthepricelevel Crealnationalincome Dthecentral6、TheempiricalsupportforPPPandthelawofonepriceisweakbecause()TradebarriersandnontradablesDeparturesfromfreecompetitionThepricelevelisflexibleinthelong-runInternationaldifferencesinpricelevelmeasurement7、Thelong-rundeterminationofnominalexchangeratescanbeanalyzedbycombiningthefollowing()Balassa-SamuelsonhypothesisThetheoryofthelong-runrealexchangerateTheMarshall-LernerConditionThetheoryofhowdomesticmonetaryfactorsdeterminelong-runpricelevels8、TheDDschedulewillmoverightwardsif()ThereisanincreaseingovernmentspendingThereisataxcutThereisaninreaseininvestmentThereisariseinforeignpricelevel9、Apermanentincreaseinthemoneysupplyhasnolastingeffecton()Adomesticoutput Bexchangerate Crelativeprices Ddomesticinterestrate10、Ifaneconomyisinequilibrium,apermanentexpansionaryfiscalpolicyinhomecountryeventuallycauses()AllmoneypricestoriseinproportionExchangeratetoriseinproportiontoAppreciationofdomesticcurrency InternationalFinance:byElinorTaoQingmei InternationalFinance:byElinorTaoQingmei PAGE3PAGE3重庆工商大学财政金融学院陶庆梅制作ThecurrentaccountworsenedoffTRUE-FALSEQUESTION(20points)Indicatewhetherthestatementorsentenceistrueorfalse.PutTifyouthinkitistrue,Fforfalse.IfyouputF,givethetruestatement.Eachquestionisworth2points.Acountrywithacurrentaccountdeficitmustbeincreasingitsnetforeigndebtsbyamountofthedeficit.()Thedirectquotationisthepriceoftheforeigncurrencyintermsofdomesticcurrency.()Giventhepricelevelandthemoneysupply,anincreaseintheinterestrateraisestherealoutput.()Nominalexchangerateisarelativepriceof2currencies,whilerealexchangerateisarelativepriceof2outputbaskets.()ArealdepreciationofdomesticcurrencycouldimprovethecurrentaccountCA.()Underfixedexchangerates,monetarypolicycanaffectinternationalreserves.()Continuinggrowthinthemoneysupplyeventuallywillaffecttheinterestrate.()Balanceofpaymentscrisesoccurwhenmarketparticipantsexpectthecentralbanktochangetheexchangeratefromitscurrentlevel.()Centralassetsandthemoneysupplyarenegativelyrelated()10.SHORTANSWERS(30points)1、Accordingtothemonetaryapproach,anincreaseindomesticinterestratemakesdomesticcurrencydepreciate;whilesometimeshigherdomesticinterestrateleadsdomesticcurrencyappreciation.Explaintheseeminglyparadoxicalsituations.(10points)2、Whatistheproperpolicytomaintainfullemploymentafterahot-moneybiddingonChineseRMB?(10points)3、WhatistheJ-curve?(10points)NUMERICALEXERCISE(30points)1、Givenacentralbank’sbalancesheetas:CentralBankBalanceSheetassetsForeignassets$1000liabilitiesDepositsheldbyprivatebanks$500Domesticassets$1500Currencyincirculation$2000sum$2500sum$2500CentralBankBalanceSheetassetsForeignassetsDomesticassetssumliabilitiesDepositsheldbyprivatebanksCurrencyincirculationsumSupposethatthecentralbanksells$100ofitsforeignassetsandreceivesaspaymenta$100checkontheprivatebank,showthebookkeepingofthecentralCentralBankBalanceSheetassetsForeignassetsDomesticassetssumliabilitiesDepositsheldbyprivatebanksCurrencyincirculationsum2、Ifpeopleexpectrelati