CHAPTER 2 International Monetary SystemWord文档下载推荐.docx

CHAPTER 2 International Monetary SystemWord文档下载推荐.docx

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ProspectsoftheEuro:

SomeCritical

Questions

TheMexicanPesoCrisis

TheAsianCurrencyCrisis

OriginsoftheAsianCurrencyCrisis

LessonsfromtheAsianCurrencyCrisis

TheArgentinePesoCrisis

FixedversusFlexibleExchangeRateRegimes

Summary

MINICASE:

WilltheU.K.JointheEuroClub?

1）Theinternationalmonetarysystemcanbedefinedastheinstitutionalframeworkwithinwhich:

a）internationalpaymentsaremade

b）movementofcapitalisaccommodated

c）exchangeratesamongcurrenciesaredetermined

d）alloftheabove

Answer:

dpage25.

2）Theinternationalmonetarysystemwentthroughseveraldistinctstagesofevolution.Thesestagesaresummarized,inalphabeticorder,asfollows

（i）-Bimetallism

（ii）-BrettonWoodssystem

（iii）-Classicalgoldstandard

（iv）-Flexibleexchangerateregime

（v）-Interwarperiod

Thechronologicalorderthattheyactuallyoccurredis:

a）（iii）,（i）,（iv）,（ii）,and（v）

b）（i）,（iii）,（v）,（ii）,and（iv）

c）（vi）,（i）,（iii）,（ii）,and（v）

d）（v）,（ii）,（i）,（iii）,and（iv）

b

3）Gresham’sLawstatesthat

a）Badmoneydrivesgoodmoneyoutofcirculation.

b）Goodmoneydrivesbadmoneyoutofcirculation

c）Ifacountrybasesitscurrencyonbothgoldandsilver,atanofficialexchangerate,itwillbethemorevaluableofthetwometalsthatcirculate.

d）Noneoftheabove.

a

4）Inthe1850stheFrenchfrancwasvaluedbybothgoldandsilver,undertheofficialFrenchratiowhichequatedagoldfranctoasilverfranc15½

timesasheavy.Atthesametime,thegoldfromnewlydiscoveredminesinCaliforniapouredintothemarket,depressingthevalueofgold.Asaresult,

a）Thefranceffectivelybecameasilvercurrency.

b）Thefranceffectivelybecameagoldcurrency.

c）SilverbecameovervaluedundertheFrenchofficialratio

d）Answersa）andc）arecorrect

b

5）Supposethatthepoundispeggedtogoldat£

20perounceandthedollarispeggedtogoldat$35perounce.Thisimpliesanexchangerateof$1.75perpound.Ifthecurrentmarketexchangerateis$1.80perpound,howwouldyoutakeadvantageofthissituation?

Hint:

assumethatyouhave$350availableforinvestment.

a）Startwith$350.Buy10ouncesofgoldwithdollarsat$35perounce.Convertthegoldto£

200at£

20perounce.Exchangethe£

200fordollarsatthecurrentrateof$1.80perpoundtoget$360.

b）Startwith$350.Exchangethedollarsforpoundsatthecurrentrateof$1.80perpound.Buygoldwithpoundsat£

20perounce.Convertthegoldtodollarsat$35perounce.

c）a）andb）bothwork

d）noneoftheabove

6）Priortothe1870s,bothgoldandsilverwereusedasinternationalmeansofpaymentandtheexchangeratesamongcurrenciesweredeterminedbyeithertheirgoldorsilvercontents.Supposethatthedollarwaspeggedtogoldat$30perounce,theFrenchfrancispeggedtogoldat90francsperounceandtosilverat6francsperounceofsilver,andtheGermanmarkpeggedtosilverat1markperounceofsilver.WhatwouldtheexchangeratebetweentheU.S.dollarandGermanmarkbeunderthissystem?

a）1Germanmark=$2

b）1Germanmark=$0.50

c）1Germanmark=$45

d）1Germanmark=$1

apage26.

Rationale:

Startwith$30,buyoneounceofgold.SellthatounceofgoldforFF90.SelltheFF90for15ouncesofsilver.Buy15Germanmarks.Thus,$30=DM15.

1875-1914

7）An“international”goldstandardcanbesaidtoexistwhen

a）goldaloneisassuredofunrestrictedcoinage

b）thereistwo-wayconvertibilitybetweengoldandnationalcurrenciesatstableratios

c）goldmaybefreelyexportedorimported

d-p.28

8）SupposethattheBritishpoundispeggedtogoldat£

6perounce,whereasoneounceofgoldisworth€12.Underthegoldstandard,anymisalignmentoftheexchangeratewillbeautomaticallycorrectedbycrossborderflowsofgold.Calculatethepossiblesavingsforbuying€1,000,iftheBritishpoundbecomesundervaluedandtradesfor€1.80.（Assumezeroshippingcosts）.

（Hint:

GoldisfirstpurchasedusingthedevaluedBritishpoundfromtheBankofEngland,thenshippedtoFranceandsoldfor€1,000totheBankofFrance）.

a）£

55.56

b）£

65.56

c）£

75.56

d）£

85.56

a-p.28

SinceanounceofgoldshouldbeworththesamenorthorsouthoftheEnglishChannel,itshouldbe€12=£

6.Soourexchangerateimpliedbygoldpricesis€2=£

1,thereforebuying€1,000shouldcost£

500:

€1,000×

£

1/€2=£

500.00

Ifthepoundisundervaluedat€1.80,wefindthat€1,000costs£

555.56:

1/€1.80=£

555.56

Savingsinbuying€1,000byusinggoldandnotpostedexchangerates:

555.56-£

500.00=£

9）Underagoldstandard,ifBritainexportedmoretoFrancethanFranceexportedtoGreatBritain,

a）Suchinternationalimbalancesofpaymentwillbecorrectedautomatically.

b）Thistypeofimbalancewillnotbeabletopersistindefinitely

c）NetexportfromBritainwillbeaccompaniedbyanetflowofgoldintheoppositedirection.

d）Alloftheabove

dpage27.

10）SupposethatBritainpegsthepoundtogoldatsixpoundsperounce,whereastheexchangeratebetweenpoundsandU.S.dollarsis$5=£

1.WhatshouldanounceofgoldbeworthinU.S.dollars?

a）$29.40

b）$30.00

c）$0.83

d）$1.20

b）

1oz.Au=£

6and£

1=$5so£

6=$30=1oz.Au

11）Underthegoldstandard,internationalimbalancesofpaymentwillbecorrectedautomaticallyunderthe

a）GreshamExchangeRateregime

b）EuropeanMonetarySystem

c）Price-specie-flowmechanism

d）BrettonWoodsAccord

c

InterwarPeriod

12）DuringtheperiodbetweenWorldWarIandWorldWarII

a）ThemajorEuropeanpowersandtheU.S.returnedtothegoldstandardandfixedexchangerates.

b）WhilemostcountriesabandonedthegoldstandardduringWorldWarI,internationaltradeandinvestmentflourishedduringtheinterwarperiodunderacoherentinternationalmonetarysystem.

c）TheU.S.dollaremergedasthedominantworldcurrency,graduallyreplacingtheBritishpoundfortherole.

c29.

13）DuringtheperiodbetweenWorldWarIandWorldWarII,manycentralbanksfollowedapolicyofsterilizationofgold

a）Thisrestrictedtherateofgrowthinthesupplyofgold

b）Bymatchinginflowsandoutflowsofgoldrespectivelywithreductionsandincreasesindomesticmoneyandcredit.

c）Bymatchinginflowsandoutflowsofgoldrespectivelywithincreasesandreductionsindomesticmoneyandcredit.

bpage29.

14）AttheoutbreakofWorldWarI

a）MajorcountriessuchasGreatBritain,France,GermanyandRussiasuspendedredemptionofbanknotesingold

b）MajorcountriessuchasGreatBritain,France,GermanyandRussiaimposedembargoesontheexportofgold

c）Theclassicalgoldstandardwasabandoned

d）Alloftheabove.

bpage28

1945-1972

15）UndertheBrettonWoodssystem

a）therewasanexplicitsetofrulesabouttheconductofinternationalmonetarypolicies

b）eachcountrywasresponsibleformaintainingitsexchangeratewithin1percentoftheadoptedparvaluebybuyingorsellingforeignexchangesasnecessary

c）theU.S.dollarwastheonlycurrencythatwasfullyconvertibletogold

d.

16）UndertheBrettonWoodssystem:

a）Eachcountryestablishedaparvalueforitscurrencyinrelationtothedollar.

b）TheU.S.dollarwaspeggedtogoldat$35perounce.

c）eachcountrywasresponsibleformaintainingitsexchangeratewithin1percentoftheadoptedparvaluebybuyingorsellingforeignexchangesasnecessary

17）SincetheSDRisa“portfolio”ofcurrencies

a）ItsvaluetendstobemorestablethanthevalueofanyoftheindividualcurrenciesincludedintheSDR

b）ItsvaluetendstobelessstablethanthevalueofanyoftheindividualcurrenciesincludedintheSDR

c）ItsvaluetendstobeasstableastheaverageoftheindividualcurrenciesincludedintheSDR

d）Noneoftheabove

a）

whilethisisinthebookonpage31,manystudentstendtomissthisone.Anyportfolioislessvolatilethantheaveragevolatilityoftheindividualsecurities,aslongasatleasttwosecuritiesarenotperfectlypositivelycorrelated.Thisiscertainlythecasewithcurrencies.

18）SpecialDrawingRights（SDR）are:

a）anartificialinternationalreserveallottedtothemembersoftheInternationalMonetaryFund（IMF）,whocanthenuseitfortransactionsamongthemselvesorwiththeIMF

b）a“portfolio”ofcurrencies,anditsvaluetendstobemorestablethanthecurrenciesthatitiscomprisedof

c）usedinadditiontogoldandforeignexchanges,tomakeinternationalpayments

d-p.32

TheFlexibleExchangeRateSystem

19）Goldwasofficiallyabandonedasaninternationalreserveasset:

a）IntheJanuary1976JamaicaAgreement

b）Inthe1971SmithsonianAgreement

c）Inthe1944BrettonWoodsAgreement

a

20）FollowingthedemiseoftheBrettonWoodssystem,theIMF

a）Createdanewroleforitself,providingloansto