1、j211偶数题答案汇总Chapter 1 International Economics is DifferentNo Questions and AnswersChapter 2 Payments among NationsSuggested answers to questions and problems (in the textbook)2. Disagree, at least as a general statement. One meaning of a current account surplus is that the country is exporting more g
2、oods and services than it is importing. One might easily judge that this is not goodthe country is 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 thi
3、s way a current account deficit might be considered goodthe extra imports allow the country to consume 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
4、its claims on foreigners, and this adds to national wealth. This sounds good, but as noted above it 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 foreig
5、ners. This sounds bad, but it comes with the benefit of higher levels of current domestic expenditure. 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 de
6、ficit.4. Disagree. If the country has a surplus (a positive value) for its official settlements balance, 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 i
7、n order for the country to acquire more of these kinds of assets. Thus, the country is increasing its holdings of official reserve assets.6. a. CA = If, so if net foreign investment increases, then the value of the current account increases. b. If both exports (a positive item) and imports (a negati
8、ve item) increase by $10 billion, the value of the current account balance stays the same. c. CA = Y E, so the combination of an increase in production (Y) by $100 billion and an increase in expenditures (E) by $150 billion results in a decrease in the value of the current account balance. d. The tr
9、ansport equipment is an export of goods, so it is a positive item in current account. It must be paired with a negative item of the same amount showing the unilateral transfer (gift). Because both of these items are included in the current account, the value of the current account balance stays the
10、same. 8. a. Goods and services balance: $330 198 + 196 204 = $124 Current account balance: $330 198 + 196 204 + 3 8 = $119 Official settlements balance: $330 198 + 196 204 + 3 8 + 102 202 + 4 = $23 b. Change in official reserve assets (net) = official settlements balance = $23. The country is increa
11、sing its net holdings of official reserve assets.10. a. International investment position (billions): $30 + 20 + 15 40 25 = $0. The country is neither an international creditor nor a debtor. Its holding of international assets equals its liabilities to foreigners. b. A current account surplus permit
12、s the country to add to its net claims on foreigners. For this reason the countrys international investment position will become a positive value. The flow increase in net foreign assets results in the stock of net foreign assets becoming positive.Chapter 3 The Foreign Exchange MarketSuggested answe
13、rs to questions and problems (in the textbook)2. 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 foreign buyers want to pay in their currency. In the process of paying f
14、or these exports, foreign currency is exchanged for domestic currency, creating supply of foreign currency. International capital inflows result in supply of foreign currency in the foreign exchange market. In making investments in domestic financial assets, foreign investors often start with foreig
15、n currency and must exchange it for domestic currency before they can buy the domestic assets. The exchange creates supply of foreign currency. Sales of foreign financial assets that the countrys residents had previously acquired, and borrowing from foreigners by this countrys residents are other fo
16、rms of capital inflow that can create supply of foreign currency.4. The U.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 that it wants to use dollars from its dollar checking account to buy 1 mil
17、lion 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 in Japan to take 1 million yen from its account at the correspondent bank and transfer the yen to th
18、e bank account of the Japanese firm. (The U.S. bank could also use yen at its own branch if it has a branch in Japan.)6. The trader would seek out the best quoted spot rate for buying euros with dollars, either by using the services of a foreign exchange broker or through direct contact with traders
19、 at other banks. 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 rate for selling euros for dollars. The trader will use the best spo
20、t 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 too high) relative to the dollar-foreign currency exchange rates. Thus
21、, 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 $0.01/yen. For each dollar that you sell initially, you can obtain 5
22、 kroner, these 5 kroner can obtain 125 yen, and the 125 yen can obtain $1.25. The arbitrage profit for each dollar is therefore 25 cents. b. Selling kroner to buy yen puts downward pressure on the cross rate (the yen price of krone). The value of the cross rate must fall to 20 (=0.20/0.01) yen/krone
23、 to eliminate the opportunity for triangular arbitrage, assuming that the dollar exchange rates are unchanged.10. a. The increase in supply of Swiss francs puts downward pressure on the exchange-rate value ($/SFr) of the franc. The monetary authorities must intervene to defend the fixed exchange rat
24、e by buying SFr and selling dollars. b. The increase in supply of francs puts downward pressure on the exchange-rate value ($/SFr) of the franc. The monetary authorities must intervene to defend the fixed exchange rate by buying SFr and selling dollars. c. The increase in supply of francs puts downw
25、ard pressure on the exchange-rate value ($/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 on the exchange-rate value ($/SFr) of the franc. The monetary authori
26、ties must intervene to defend the fixed exchange rate by buying SFr and selling dollars.Chapter 4 Forward Exchange and International Financial InvestmentSuggested answers to questions and problems (in the textbook)2. You will need data on four market rates: The current interest rate (or yield) on bo
27、nds issued by the U.S. government that mature in one 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.
28、 Do these rates result in a covered interest differential that is very close to zero?4. a. The U.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 sel
29、l yen and receive dollars at the current forward rate. 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
30、contract now in which the student commits to sell yen 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. The U.S. firm has an liability position in yena short position in yen. To hedge its exposure to exchange rat
31、e risk, the firm should enter into a forward exchange contract 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 d
32、ays ($1.22/euro), the current forward rate of the euro ($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 euros 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 for
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