国际金融学习题汇总.docx

1、国际金融学习题汇总Ch011.Using the following data(billions of dollars)for a given year, calculate the balance on merchandise trade balance on goods, services, and income and the current account balance. Indicate whether these balances are deficits or surpluses.Exports of goods 719 Imports of goods 1.145Export

2、s of services 279 Imports of services 210Net unilateral transfers -49 Income receipts 284Income payments 269 Statistical discrepancy 112.Using the data in Question 1, calculate the capital account balance. Is the capital account balance a surplus or deficit?3.What is a balance-of-payments equilibriu

3、m? Considering your answers to Questions 1 and 2, is this country experiencing a balance-of-payments deficit of surplus?4.Using the data in Table 1-2, is there a balance-of-payments surplus of deficit for the United States in 2003?5.Write out a positive and negative aspect of a nation being a net de

4、btor. Do the same thing for a nation that is a net creditor.6.Explain why a nation might desire to receive both portfolio investment and direct investment from abroad.7.Write out a single equation showing the relationship between the current account and net capital inflows, including changes in offi

5、cial reserves and other government assets, as they relate to investment spending and domestic saving.8.Suppose a nation spends 10 percent of its income on investment and the private sector 5 percent. Further, suppose the national government runs a deficit of 1 percent. Using the equation you derived

6、 for Question 7 and these data, explain what the above conditions mean for the nations capital account and current account. How might the imbalance be corrected?Ch031.List all of the various types of exchange-rate arrangements described in this chapter. (Hint: there are seven described in this chapt

7、er.) Order the list of exchange-rate arrangements from fixed to most flexible.2.Describe two primary functions of the International Monetary Fund.3.Suppose the value of the U.S. dollar is pegged to gold at a rate of $50 per ounce. Next suppose that the value of the British pound is pegged to the U.S

8、. dollar at a rate of $1.50 per pound, and the value of the Canadian dollar is pegged to the U.S. dollar at a rate of $1.38 Canadian dollars per U.S. dollars. Calculate the value of the Canadian dollar and the British pound relative to gold.4.Using the information in Problem 3, calculate the exchang

9、e rate between the Canadian dollar and the British pound.5.Suppose Argentina decides to peg the value of its currency, the peso, to a basket consisting of 0.50 U.S. dollars and 0.50 Euros. Further suppose the exchange rate between the U.S. dollar and the euro is 1.10$/. If the basket constitutes one

10、 peso, what is the appropriate exchange value between the peso and the dollar, and between the peso and the euro?6.Based on the information in Problem 5, what is the weight assigned to the U.S. dollar in the currency basket? What is the weight assigned to the euro?7.Explain the main difference betwe

11、en the exchange-rate systems of the Smithsonian agreement and the Bretton Woods system. Based on this difference, why do you think the Smithsonian agreement was so short lived?8.What is the principle responsibility of a currency board? What three main restrictions on a currency board make it differe

12、nt from a typical central bank?9.Explain how the Louvre Accord represented a type of exchange-rate system.10.What factors do you think should be considered when determining the rate of crawl for a crawling-peg exchange-rate system?11.What, in your opinion, is the chief difference between a currency-

13、board system and dollarization?Ch061.Suppose that a Japanese bank has total assets of 1,000 million. Of these assets, 80 percent are loans to businesses, and the remainder are holdings of cash assets and government securities. The bank engages in derivatives trading that Japanese regulators assign a

14、 credit equivalence exposure value of 400 million. The banks equity capital amounts to 100 million, and the bank has no subordinated debt. Does this bank meet current capital requirements?2.In what ways do the current functions and objectives of the International Monetary Fund and the World Bank ove

15、rlap? In what ways do they have different functions and pursue different goals?Ch071.Explain the difference between direct and indirect financing. Next explain why a nation might desire a strong and stable system of financial intermediaries and a robust bond market.2.List three benefits of portfolio

16、 capital and three benefits of foreign direct investment. Give one negative aspect of each. Explain why it is undesirable to rely on portfolio capital only. Explain why it is undesirable to rely on FDI only.3.Suppose a nation has a pegged-exchange-rate system and you are the nations chief central ba

17、nker. Construct a supply and demand diagram of the spot exchange market for the domestic currency. Explain, using the diagram, how the central bank must react to portfolio cappital inflows and outflows so as to maintain the currency peg.4.explain how allowing foreign banks to enter and compete in th

18、e domestic financial sector might improve capital market allocations. Explain how, in general, competition among financial intermediaries is important to financial stability.5.explain how savers and borrowers might benefit from regulation of a nations financial intermediaries. Does regulation impose

19、 costs? How do these costs affect long-run economic development?6.suppose you are a policymaker in an emerging economy. Explain what types of capital flow you would try to encourage. What policy actions might you take to encourage these types of flows?7.you are the finance minister of an emerging ec

20、onomy. You have the responsibility of maintaining an exchange-rate regime in which the value of the domestic currency is pegged to the currency of a large trading partner. Explain what policy actions or operations you would take to maintain the exchange-rate regime under the following circumstances.

21、a.there is an increased inflow of short-term(portfolio) capital that you believe is only temporary in nature.b.There is an increased inflow of long-term(direct investment) capital that you believe will persist for at least a few years.8.some observers have responded to harsh criticisms of World Bank

22、 policies by arguing that the World Banks members have saddled it with conflicting goals. Do you agree that the World Bank confronts conflicting objectives? If not, why not? If so, which of the allegedly conflicting goals do you think should take precedence?9.construct a table with three columns tha

23、t lists each of the views on the causes of international financial crises in the left-hand column. In the second column of the table, list at least one possible financial crisis indicator corresponding to each view that might be tracked in an IMF early waning system for predicting financial crises.

24、In the third column, propose how to evaluate whether each potential indicator you have proposed actually helps predict a crisis. Does this exercise help explain why economists have a hard time constructing reliable early warning systems?10.Should multinational institutions lend funds at interest rat

25、es below, equivalent to, or above private-market interest rates? Take a stand, and support your position. Ch091.Write out an euqtion representing the monetary approach to balance-of-payments and exchange rate determination. Suppose that domestic credit euqls $1000 million, foreign exchange reserves

26、equals $80 million, the money multiplier is 2, the fraction of nomial income that individuals desire to hold in money balances is 20 percent, the foreign price level is 1.2, and the spot exchange value of the domestic currency is 2. using this information, what is:a.the money stock in the domestic e

27、conomy?b.The level of real income of the domestic economy?2.Using the information in Question 5, suppose the domestic monetary authoritied increase domestic credit by $10 million through an open-market purchase of securities.a.Under a fixed exchange-rate regime, what is the effect of this open-marke

28、t trasaction on the nations balance of payments?b.Under flexible exchange rates, all other things constant, what is the new exchange value of the domestic currency? Is this an appreciation or depreciation?3.Write out the wealth identity. Using this identity, explain the impact of a central bank open

29、-market sale of bonds on the exchange value of the domestic currency. Now suppose that the exchange rate is pegged. Using the wealth identity, explain the impact of the open-market operation on the domestic nations balance of payments.4.Illustrate the spot exchange market for the domestic currency u

30、sing the supply and demand framework. Explain and illustrate the effect of a central bank open-market sale of bonds on the exchange value of the domestic currency.5.Write out a wealth identity for both the domestic economy and the foreign economy. Using this identity, explain the impact of an open-m

31、arket sale of bonds by the central bank of the the foreign economy on the exchange value between the domestic and foreign currencies.Ch101.Refer to the circular-flow diagram in Figure 10-1 (p.339), and identify flows that constitute leakages from the economys overall spending flow. Now identify the

32、flows that are reinjections into the overall flow of expenditures. What is definitionally true of these leakages and reinjections? Explain.2.Suppose that the U.S.S GDP deflator is equal to one and that the U.S. nominal money stock is equal to $1.8 trillion. If the demand schedule for real money balances is given by the straight-line function (measured in tril