questions3 the foreign exchange rate marketWord格式文档下载.docx

1、c. Both exporters and importers to rush to cover their future needsd. Neither exporters nor importers to rush to cover their future needs 4. When short-term interest rates become lower in Tokyo than in New York, interest arbitrage operations will most likely result in a （an）:a. Increase in the spot

2、price of the yenb. Increase in the forward price of the dollarc. Sale of dollars in the forward marketd. Purchase of yen in the spot market 5. An appreciation in the value of the U.S. dollar against the British pound would tend to:a. Discourage the British from buying American goodsb. Discourage Ame

3、ricans from buying British goodsc. Increase the number of dollars that could be bought with a poundd. Discourage U.S. tourists from traveling to Britain 6. Concerning the foreign exchange market, one can best say that:a. There is a spot market for virtually every currency in the worldb. The market i

4、s highly centralized like the stock exchangec. Most foreign exchange payments are made with bank notesd. The values of the forward and spot rates are always in agreement 7. Suppose researchers discover that Swiss beer causes cancer when given in large amounts to British mice. This finding would like

5、ly result in a （an）:a. Increase in the demand for Swiss francsb. Decrease in the demand for Swiss francsc. Increase in the supply of Swiss francsd. Decrease in the supply of Swiss francs 8. Suppose that real incomes increase more rapidly in the United States than in Mexico. In the United States, thi

6、s situation would likely result in a （an）:a. Increase in the demand for pesosb. Decrease in the demand for pesosc. Increase in the supply of pesosd. Decrease in the supply of pesos 9. A depreciation of the dollar refers to a （an）:a. Fall in the dollar price of foreign currencyb. Increase in the doll

7、ar price of foreign currencyc. Loss of foreign-exchange reserves for the U.S.d. Intervention in the international money market 10. If Canadian speculators believed the Swiss franc was going to appreciate against the U.S. dollar, they would:a. Purchase Canadian dollarsb. Purchase U.S. dollarsc. Purch

8、ase Swiss francsd. Sell Swiss francs 11. A major difference between the spot market and the forward market is that the spot market deals with:a. The immediate delivery of currenciesb. The merchandise trade accountc. Currencies traded for future deliveryd. Hedging of international currency risks 12.

9、The exchange rate is kept the same in all parts of the market by:a. Forward coverb. Hedgingc. Exchange speculationd. Exchange arbitrage 13. If you have a commitment to pay a friend in Britain 1,000 pounds in 30 days, you could remove the risk of loss due to the appreciation of the pound by:a. Buying

10、 dollars in the forward market for delivery in 30 daysb. Selling dollars in the forward market for delivery in 30 daysc. Buying the pounds in the forward market for delivery in 30 daysd. Selling the pounds in the forward market for delivery in 30 days 14. An increase in the dollar price of other cur

11、rencies tends to cause:a. U.S. goods to be cheaper than foreign goodsb. U.S. goods to be more expensive than foreign goodsc. Foreign goods to be more expensive to residents of foreign nationsd. Foreign goods to be cheaper to residents of the United States 15. The balance on merchandise trade:a. Must

12、 be negativeb. Must be positivec. Must be zerod. May be negative, positive, or zero 16. Which of the following would not induce the U.S. demand curve for foreign exchange to shift backward to the left?a. Worsening American tastes for goods produced overseasb. Decreasing interest rates in the U.S. co

13、mpared to those overseasc. A fall in the level of U.S. incomed. A depreciation in the U.S. dollar against foreign currencies 17. A U.S. export company scheduled to receive 1 million pounds six months from today can hedge its foreign exchange risk by:a. Buying today 1 million pounds in the forward ma

14、rket for delivery in six monthsb. Buying 1 million pounds in the spot market for delivery in six monthsc. Selling 1 million pounds in the spot market for delivery in six monthsd. Selling today 1 million pounds in the forward market for delivery in six months 18. Over time, a depreciation in the valu

15、e of a nations currency in the foreign exchange market will result in:a. Exports rising and imports fallingb. Imports rising and exports fallingc. Both imports and exports risingd. Both imports and exports falling 19. Grain shortages in countries that buy large amounts of grain from the United State

16、s would increase the demand for American grain and:a. Reduce the demand for dollarsb. Increase the demand for dollarsc. Reduce the supply of dollarsd. Increase the supply of dollars 20. Suppose the exchange rate between the Japanese yen and the U.S. dollar is 100 yen per dollar. A Japanese stereo wi

17、th a price of 60,000 yen will cost:a. $60b. $600c. $6,000d. None of the above 21. The supply of foreign currency may be:a. Upward-slopingb. Backward-slopingc. Vertical 22. Suppose that a Swiss watch that costs 400 francs in Switzerland costs $200 in the United States. The exchange rate between the f

18、ranc and the dollar is:a. 2 francs per dollarb. 1 franc per dollarc. $2 per francd. $3 per franc 23. In the early 1980s, the Federal Reserve pursued a tight monetary policy. All else being equal, the impact of that policy was to _ interest rates in the United States relative to those in Europe and c

19、ause the dollar to _ against European currencies.a. Decrease, depreciateb. Decrease, appreciatec. Increase, depreciated. Increase, appreciate 24. Under a system of floating exchange rates, the Swiss franc would depreciate in value if which of the following occurs?a. Price inflation in Franceb. An in

20、crease in U.S. real incomec. A decrease in the Swiss money supplyd. Falling interest rates in Switzerland 25. A depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is:a. Constantb. Inelasticc. Elasticd. Unitary elastic 26. During the era of dollar app

21、reciation, from 1981 to 1985, a main reason why the dollar did not fall in value was:a. Flows of foreign investment into the United Statesb. Rising price inflation in the United Statesc. A substantial decrease in U.S. importsd. A substantial increase in U.S. exports 27. Which financial instrument pr

22、ovides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years?a. Letter of creditb. Foreign currency optionc. Cable transferd. Bill of exchange 28. Given the foreign currency market for the Swiss franc, the supply of francs slo

23、pes upward, because as the dollar price of the franc rises:a. Americas demand for Swiss merchandise risesb. Americas demand for Swiss merchandise fallsc. Switzerlands demand for American merchandise risesd. Switzerlands demand for American merchandise falls 29. In a supply-and-demand diagram for Jap

24、anese yen, with the exchange rate in dollars per yen on the vertical axis, the demand schedule for yen is drawn sloping:a. Upwardb. Verticalc. Downwardd. Horizontal 30. Suppose there occurs an increase in the Canadian demand for Japanese computers. This results in:a. An increase in the demand for ye

25、nb. A decrease in the demand for yenc. An increase in the supply of yen to Canadad. A decrease in the supply of yen to CanadaTable 12.1 gives the exchange rate quotations for the U.S. dollar and the British pound. Answer the next four questions on the basis of this information.Table 12.1.Foreign Exc

26、hange Quotations U.S. Dollar Equivalent Currency per U.S. Dollar Tuesday Monday Tuesday MondayBritain （Pound） 1.4270 1.4390 .7008 .694930-day Forward 1.4211 1.4333 .7037 .697760-day Forward 1.4090 1.4220 .7097 .7032180-day Forward 1.3930 1.4070 .7179 .7107 31. Consider Table 12.1. If one were to buy

27、 pounds for immediate delivery, on Tuesday the dollar cost of each pound would be:a. $0.7008b. $0.7037c. $1.4211d. $1.4270 32. Consider Table 12.1. If one were to sell dollars for immediate delivery, on Tuesday the pound cost of each dollar would be:a. .7008 pounds per dollarb. .7037 pounds per doll

28、arc. 1.4270 pounds per dollard. 1.4211 pounds per dollar 33. Consider Table 12.1. Comparing Tuesday to the previous Monday, by Tuesday the dollar had:a. Depreciated against the poundb. Appreciated against the poundc. Not changed against the pound 34. Consider Table 12.1. Concerning the Tuesday quotations: compared to the cost of buying 100 pounds on the spot market, if 100 pounds were bought for future delivery in