国际金融英文版习题chapter2.doc

国际金融英文版习题chapter2.doc

《国际金融英文版习题chapter2.doc》由会员分享，可在线阅读，更多相关《国际金融英文版习题chapter2.doc（5页珍藏版）》请在冰豆网上搜索。

1InternationalFinance

AssignmentProblems

（2）Name:

StudentNo.:

I.Choosethecorrectanswerforthefollowingquestions（onlyONEcorrectanswer）（5creditsforeachquestion,totalcredits4x15=60）

1.Accordingtotheprincipleofthebalancedbalanceofpayments,ifacountryreducesitsforeignexchangereservesby$20millionandthestatisticaldiscrepancyisinthecreditentryof$5millioninagivenperiodoftime,thecountryruns__________ofitsbalanceofpaymentsduringthatperiodoftime.

A.$15milliondeficits

B.$25milliondeficits

C.$20milliondeficits

D.$5milliondeficits

2.Ifacountry’sdomesticsavingisgreaterthandomesticinvestment,thecountryprobablyhas__________.

A.acurrentaccountsurplus

B.anetcapitaloutflow

C.acurrentaccountdeficit

D.BothAandBarepossible.

3.Adebitentryinthebalance-of-paymentsaccountrepresentsatransactionthat__________.

A.adomesticresidentreceivesapaymentfromabroad

B.adomesticresidentmakesapaymenttoaforeignresident

C.willimprovethecurrentaccountstatus

D.willhavenoaffectsonthenation’sforeignexchangereserves

4.Intermsofbalance-of-paymentsaccount,whichofthefollowingwouldberecordedasadebitentryintheU.S.BOP?

A.exportsofmerchandise

B.exportsofservices

C.purchaseoftheU.S.Treasurybondsbynon-residents

D.anincreaseofthedepositinaU.S.resident'saccountataforeignbank

5.Abalance-of-paymentsdeficitisdefinedasasituationinwhich__________.

A.thevalueofpaymentsmadetotheforeignersexceedsthevalueofreceiptsreceivedfromtheforeignersinagivenperiodoftime

B.thegovernmentmustborrowinordertomeetitsbudgetobligations

C.thevalueofmanufacturedgoodexportsislessthanthevalueofimportedgoods

D.anationearnsmuchinextraassetsorreducedliabilitiesinitsdealingswiththerestoftheworld

6.WhichofthefollowingwouldNOTbeconsideredasatypicalBOPtransaction?

A.ToyotaUSAisaUSdistributorofautomobilesmanufacturedinJapanbyitsparentcompany.

B.AU.S.subsidiaryofEuropeanfinancialgiant,CreditSuisse,paysdividendstoitsparentinZurich.

C.AUStouristpurchasesgiftsatamuseuminLondon.

D.AllareexampleofBOPtransactions.

7.Thebalanceofpaymentsisastatisticalrecordwhichmeasuresthetotalvalueof__________.

A.acountry’sforeignexchangereservesinacertainperiodoftime

B.acountry’sforeigntradesbetweentheresidentsofacountryanditsnon-residentsforagivenperiodoftime

C.alleconomicandfinancialtransactionsbetweentheresidentsofacountryanditsnon-residentsforagivenperiodoftime

D.acountry’scapitalinflowsandoutflowsataparticulardateinagivenyear

8.ABritishpensionfundsellssomeofitsholdingsofthestocksofU.S.companiesinordertobuyU.S.corporatebonds.Thistransactionwillaffect__________.

A.theU.S.internationalinvestmentposition

B.theBritishinternationalinvestmentposition

C.bothcountries’internationalinvestmentposition

D.Noneoftheabove.Thisisbecausebothcountries’internationalinvestmentpositionunchanged,onlythecompositionofforeigninvestmentsinbothU.S.andU.K.changes.

9.WhichofthefollowingtransactionsisincludedinChina’sbalance-of-paymentsaccount?

A.AU.S.embassyinBeijingpayssalariestoitsAmericanstaffs.

B.TheWorldBankfurnishestheChinesegovernmentwithaloan.

C.AU.S.studentpaystuitionfeesforhis4year-studyinBeijingUniversity.

D.TheChineseembassyinWashingtonbuystelecommunicationequipmentsfromaChinesecompanyinShanghai.

10.IftheU.S.runscurrentaccountdeficits,wecanexpectthat__________.

A.itmayactasanetdebtorintherestoftheworld

B.itsdomesticsavingmaylessthanitsdomesticinvestment

C.itsdomesticproductionislessthanitsdomesticconsumption

D.alloftheabove

11.Thetradedeficitmeansthat__________.

A.residentsareimportingmoregoodsthantheyareexporting

B.residentsareborrowingmorefundsthantheyarelending

C.residentsarereceivingmorepaymentsthantheyaremaking

D.residentsareproducingmoregoodsthantheyareconsuming

12.Whichofthefollowingisanexampleofanexchangeoffinancialassets?

A.theexchangeofbutterforwheat

B.theexchangeofinformationtechnology

C.theexchangeofafixed-rateloanforafloating-rateloan

D.theexchangeofgoldforjewelry

13.Formostcountries,thesubcategorythattypicallydominatesthecurrentaccountis__________.

A.unilateraltransfers

B.goodstrade

C.incometrade

D.servicestrade

14.Whencate