国际金融部分重要课后习题答案.docx

1、国际金融部分重要课后习题答案【国际金融】课后习题答案Suggested Answer for International FinanceChap 2 2. Disagree, at least as a general statement. One meaning of a current account surplus is that the country is exporting more goods and services than it is importing. One might easily judge that this is not goodthe country is

2、producing goods and services that are exported, but the country is not at the same time getting the imports of goods and services that would allow it do more consumption and domestic investment. In this way a current account deficit might be considered goodthe extra imports allow the country to cons

3、ume and invest domestically more than the value of its current production. Another meaning of a current account surplus is that the country is engaging in foreign financial investmentit is building up its claims on foreigners, and this adds to national wealth. This sounds good, but as noted above it

4、 comes at the cost of foregoing current domestic purchases of goods and services. A current account deficit is the country running down its claims on foreigners or increasing its indebtedness to foreigners. This sounds bad, but it comes with the benefit of higher levels of current domestic expenditu

5、re. Different countries at different times may weigh the balance of these costs and benefits differently, so that we cannot simply say that a current account surplus is better than a current account deficit.4. Disagree. If the country has a surplus (a positive value) for its official settlements bal

6、ance, then the value for its official reserves balance must be a negative value of the same amount (so that the two add to zero). A negative value for this asset item means that funds are flowing out in order for the country to acquire more of these kinds of assets. Thus, the country is increasing i

7、ts holdings of official reserve assets.6. Item e is a transaction in which foreign official holdings ofU.S.assets increase. This is a positive (credit) item for official reserve assets and a negative (debit) item for private capital flows as the U.S. bank acquires pound bank deposits. The debit item

8、 contributes to aU.S.deficit in the official settlements balance (while the credit item is recorded below the line, permitting the official settlements balance to be in deficit). All other transactions involve debit and credit items both of which are included in the official settlements balance, so

9、that they do not directly contribute to a deficit (or surplus) in the official settlements balance.8. a. Merchandise trade balance: $330 - 198 = $132 Goods and services balance: $330 - 198 + 196 - 204 = $124 Current account balance: $330 - 198 + 196 - 204 + 3 - 8 = $119 Official settlements balance:

10、 $330 - 198 + 196 - 204 + 3 - 8 + 102 - 202 + 4 = $23 b. Change in official reserve assets (net) = - official settlements balance = -$23. The country is increasing its net holdings of official reserve assets.10. a. International investment position (billions): $30 + 20 + 15 - 40 - 25 = $0. The count

11、ry is neither an international creditor nor a debtor. Its holding of international assets equals its liabilities to foreigners. b. A current account surplus permits the country to add to its net claims on foreigners. For this reason the countrys international investment position will become a positi

12、ve value. The flow increase in net foreign assets results in the stock of net foreign assets becoming positive.Chap 32. Exports of merchandise and services result in supply of foreign currency in the foreign exchange market. Domestic sellers often want to be paid using domestic currency, while the f

13、oreign buyers want to pay in their currency. In the process of paying for these exports, foreign currency is exchanged for domestic currency, creating supply of foreign currency. International capital inflows result in a supply of foreign currency in the foreign exchange market. In making investment

14、s in domestic financial assets, foreign investors often start with foreign currency and must exchange it for domestic currency before they can buy the domestic assets. The exchange creates a supply of foreign currency. Sales of foreign financial assets that the countrys residents had previously acqu

15、ired, and borrowing from foreigners by this countrys residents are other forms of capital inflow that can create supply of foreign currency.4. TheU.S.firm obtains a quotation from its bank on the spot exchange rate for buying yen with dollars. If the rate is acceptable, the firm instructs its bank t

16、hat it wants to use dollars from its dollar checking account to buy 1 million yen at this spot exchange rate. It also instructs its bank to send the yen to the bank account of the Japanese firm. To carry out this instruction, the U.S. bank instructs its correspondent bank inJapanto take 1 million ye

17、n from its account at the correspondent bank and transfer the yen to the bank account of the Japanese firm. (The U.S. bank could also use yen at its own branch if it has a branch inJapan.)6. The trader would seek out the best quoted spot rate for buying euros with dollars, either through direct cont

18、act with traders at other banks or by using the services of a foreign exchange broker. The trader would use the best rate to buy euro spot. Sometime in the next hour or so (or, typically at least by the end of the day), the trader will enter the interbank market again, to obtain the best quoted spot

19、 rate for selling euros for dollars. The trader will use the best spot rate to sell her previously acquired euros. If the spot value of the euro has risen during this short time, the trader makes a profit.8. a. The cross rate between the yen and the krone is too high (the yen value of the krone is t

20、oo high) relative to the dollar-foreign currency exchange rates. Thus, in a profitable triangular arbitrage, you want to sell kroner at the high cross rate. The arbitrage will be: Use dollars to buy kroner at $0.20/krone, use these kroner to buy yen at 25 yen/krone, and use the yen to buy dollars at

21、 $0.01/yen. For each dollar that you sell initially, you can obtain 5 kroner, these 5 kroner can obtain 125 yen, and the 125 yen can obtain $1.25. The arbitrage profit for each dollar is therefore 25 cents. b. Selling kroner to buy yen puts downward pressure on the cross rate (the yen price of krone

22、). The value of the cross rate must fall to 20 (=0.20/0.01) yen/krone to eliminate the opportunity for triangular arbitrage, assuming that the dollar exchange rates are unchanged.10. a. The increase in supply of Swiss francs puts downward pressure on the exchange-rate value ($/SFr) of the franc. The

23、 monetary authorities must intervene to defend the fixed exchange rate by buying SFr and selling dollars. b. The increase in supply of francs puts downward pressure on the exchange-rate value ($/SFr) of the franc. The monetary authorities must intervene to defend the fixed exchange rate by buying SF

24、r and selling dollars. c. The increase in supply of francs puts downward pressure on the exchange-rate value ($/SFr) of the franc. The monetary authorities must intervene to defend the fixed exchange rate by buying SFr and selling dollars. d. The decrease in demand for francs puts downward pressure

25、on the exchange-rate value ($/SFr) of the franc. The monetary authorities must intervene to defend the fixed exchange rate by buying SFr and selling dollars.Chap 42. You will need data on four market rates: The current interest rate (or yield) on bonds issued by the U.S. government that mature in on

26、e year, the current interest rate (or yield) on bonds issued by the British government that mature in one year, the current spot exchange rate between the dollar and pound, and the current one-year forward exchange rate between the dollar and pound. Do these rates result in a covered interest differ

27、ential that is very close to zero?4. a. TheU.S.firm has an asset position in yenit has a long position in yen. To hedge its exposure to exchange rate risk, the firm should enter into a forward exchange contract now in which the firm commits to sell yen and receive dollars at the current forward rate

28、. The contract amounts are to sell 1 million yen and receive $9,000, both in 60 days. b. The student has an asset position in yena long position in yen. To hedge the exposure to exchange rate risk, the student should enter into a forward exchange contract now in which the student commits to sell yen

29、 and receive dollars at the current forward rate. The contract amounts are to sell 10 million yen and receive $90,000, both in 60 days. c. TheU.S.firm has an liability position in yena short position in yen. To hedge its exposure to exchange rate risk, the firm should enter into a forward exchange c

30、ontract now in which the firm commits to sell dollars and receive yen at the current forward rate. The contract amounts are to sell $900,000 and receive 100 million yen, both in 60 days.6. Relative to your expected spot value of the euro in 90 days ($1.22/euro), the current forward rate of the euro

31、($1.18/euro) is lowthe forward value of the euro is relatively low. Using the principle of buy low, sell high, you can speculate by entering into a forward contract now to buy euros at $1.18/euro. If you are correct in your expectation, then in 90 days you will be able to immediately resell those eu

32、ros for $1.22/euro, pocketing a profit of $0.04 for each euro that you bought forward. If many people speculate in this way, then massive purchases now of euros forward (increasing the demand for euros forward) will tend to drive up the forward value of the euro, toward a current forward rate of $1.22/euro.8. a. The Swiss franc is at a forward premium. I