1、国际金融FinanceTestBank4Chapter 4Exchange Rate Determination加息会降低通货膨胀本国货币就增值涨价了,出口就会减少进口就会增加 1. The value of the Australian dollar (A$) today is $0.73. Yesterday, the value of the Australian dollar was $0.69. The Australian dollar _ by _%.a.depreciated; 5.80b.depreciated; 4.00c.appreciated; 5.80d.apprec
2、iated; 4.00ANS: CSOLUTION:($0.73 $0.69)/$0.69 = 5.80%PTS: 1 2. If a currencys spot rate market is _, its exchange rate is likely to be _ to a single large purchase or sale transaction.a.liquid; highly sensitiveb.illiquid; insensitivec.illiquid; highly sensitived.none of the above.ANS: C PTS: 1 3. _
3、is not a factor that causes currency supply and demand schedules to change.a.Relative inflation ratesb.Relative interest ratesc.Relative income levelsd.Expectationse.All of the above are factors that cause currency supply and demand schedules to change.ANS: E PTS: 1 4. A large increase in the income
4、 level in Mexico along with no growth in the U.S. income level is normally expected to cause (assuming no change in interest rates or other factors) a(n) _ in Mexican demand for U.S. goods, and the Mexican peso should _.a.increase; appreciateb.increase; depreciatec.decrease; depreciated.decrease; ap
5、preciateANS: B PTS: 1 5. An increase in U.S. interest rates relative to German interest rates would likely _ the U.S. demand for euros and _ the supply of euros for sale.a.reduce; increaseb.increase; reducec.reduce; reduced.increase; increaseANS: A PTS: 1 6. Investors from Germany, the United States
6、, and the U.K. frequently invest in each other based on prevailing interest rates. If British interest rates increase, German investors are likely to buy _ dollar-denominated securities, and the euro is likely to _ relative to the dollar.a.fewer; depreciateb.fewer; appreciatec.more; depreciated.more
7、; appreciateANS: A PTS: 1 7. When the real interest rate is relatively low in a given country, then the currency of that country is typically expected to be:a.weak, since the countrys quoted interest rate would be high relative to the inflation rate.b.strong, since the countrys quoted interest rate
8、would be low relative to the inflation rate.c.strong, since the countrys quoted interest rate would be high relative to the inflation rate.d.weak, since the countrys quoted interest rate would be low relative to the inflation rate.ANS: D PTS: 1 8. Assume that the inflation rate becomes much higher i
9、n the U.K. relative to the U.S. This will place _ pressure on the value of the British pound. Also, assume that interest rates in the U.K. begin to rise relative to interest rates in the U.S. The change in interest rates will place _ pressure on the value of the British pound.a.upward; downwardb.upw
10、ard; upwardc.downward; upwardd.downward; downwardANS: C PTS: 1 9. In general, when speculating on exchange rate movements, the speculator will borrow the currency that is expected to appreciate and invest in the country whose currency is expected to depreciate.a. Trueb. FalseANS: F PTS: 1 10. Baylor
11、 Bank believes the New Zealand dollar will appreciate over the next five days from $.48 to $.50. The following annual interest rates apply:CurrencyLending RateBorrowing RateDollars7.10%7.50%New Zealand dollar (NZ$)6.80%7.25%Baylor Bank has the capacity to borrow either NZ$10 million or $5 million. I
12、f Baylor Banks forecast is correct, what will its dollar profit be from speculation over the five-day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)?a.$521,325.b.$500,520.c.$104,262.d.$413,419.e.$208,044.ANS: ESOLUTION:1.Borrow $5 million.2.
13、Convert to NZ$: $5,000,000/$.48 = NZ$10,416,667.3.Invest the NZ$ at an annualized rate of 6.80% over five days. NZ$10,416,667 1 + 6.80% (5/360) = NZ$10,426,5054.Convert the NZ$ back to dollars: NZ$10,426,505 $.50 = $5,213,2525.Repay the dollars borrowed. The repayment amount is: $5,000,000 1 + 7.5%
14、(5/360) = $5,000,000 1.00104 = $5,005,2086.After repaying the loan, the remaining dollar profit is: $5,213,252 $5,005,208 = $208,044PTS: 1 11. Assume the following information regarding U.S. and European annualized interest rates:CurrencyLending RateBorrowing RateU.S. Dollar ($)6.73%7.20%Euro ()6.80
15、%7.28%Trensor Bank can borrow either $20 million or 20 million. The current spot rate of the euro is $1.13. Furthermore, Trensor Bank expects the spot rate of the euro to be $1.10 in 90 days. What is Trensor Banks dollar profit from speculating if the spot rate of the euro is indeed $1.10 in 90 days
16、?a.$579,845.b.$583,800.c.$588,200.d.$584,245.e.$980,245.ANS: ASOLUTION:1.Borrow 20 million.2.Convert the 20 million to 20,000,000 $1.13 = $22,600,000.3.Invest the $22,600,000 at an annualized rate of 6.73% for 90 days. $22,600,000 1 + 6.73% (90/360) = $22,980,2454.Determine euros owed: 20,000,000 1
17、+ 7.28% (90/360) = 20,364,000.5.Determine dollars needed to repay euro loan: 20,364,000 $1.10 = $22,400,400.6.The dollar profit is $22,980,245 $22,400,400 = $579,845.PTS: 1 12. The equilibrium exchange rate of pounds is $1.70. At an exchange rate of $1.72 per pound:a.U.S. demand for pounds would exc
18、eed the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market.b.U.S. demand for pounds would be less than the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market.c.U.S. demand for pounds would exceed the supply o
19、f pounds for sale and there would be a surplus of pounds in the foreign exchange market.d.U.S. demand for pounds would be less than the supply of pounds for sale and there would be a surplus of pounds in the foreign exchange market.e.U.S. demand for pounds would be equal to the supply of pounds for
20、sale and there would be a shortage of pounds in the foreign exchange market.ANS: D PTS: 1 13. Assume that Swiss investors have francs available to invest in securities, and they initially view U.S. and British interest rates as equally attractive. Now assume that U.S. interest rates increase while B
21、ritish interest rates stay the same. This would likely cause:a.the Swiss demand for dollars to decrease and the dollar will depreciate against the pound.b.the Swiss demand for dollars to increase and the dollar will depreciate against the Swiss franc.c.the Swiss demand for dollars to increase and th
22、e dollar will appreciate against the Swiss franc.d.the Swiss demand for dollars to decrease and the dollar will appreciate against the pound.ANS: C PTS: 1 14. The real interest rate adjusts the nominal interest rate for:a.exchange rate movements.b.income growth.c.inflation.d.government controls.e.no
23、ne of the aboveANS: C PTS: 1 15. If U.S. inflation suddenly increased while European inflation stayed the same, there would be:a.an increased U.S. demand for euros and an increased supply of euros for sale.b.a decreased U.S. demand for euros and an increased supply of euros for sale.c.a decreased U.
24、S. demand for euros and a decreased supply of euros for sale.d.an increased U.S. demand for euros and a decreased supply of euros for sale.ANS: D PTS: 1 16. If inflation in New Zealand suddenly increased while U.S. inflation stayed the same, there would be:a.an inward shift in the demand schedule fo
25、r NZ$ and an outward shift in the supply schedule for NZ$.b.an outward shift in the demand schedule for NZ$ and an inward shift in the supply schedule for NZ$.c.an outward shift in the demand schedule for NZ$ and an outward shift in the supply schedule for NZ$.d.an inward shift in the demand schedul
26、e for NZ$ and an inward shift in the supply schedule for NZ$.ANS: A PTS: 1 17. If the U.S. and Japan engage in substantial financial flows but little trade, _ directly influences their exchange rate the most. If the U.S. and Switzerland engage in much trade but little financial flows, _ directly inf
27、luences their exchange rate the most.a.interest rate differentials; interest rate differentialsb.inflation and interest rate differentials; interest rate differentialsc.income and interest rate differentials; inflation differentialsd.interest rate differentials; inflation and income differentialse.i
28、nflation and income differentials; interest rate differentialsANS: D PTS: 1 18. If inflation increases substantially in Australia while U.S. inflation remains unchanged, this is expected to place _ pressure on the value of the Australian dollar with respect to the U.S. dollar.a.upwardb.downwardc.eit
29、her upward or downward (depending on the degree of the increase in Australian inflation)d.none of the above; there will be no impactANS: B PTS: 1 19. Assume that British corporations begin to purchase more supplies from the U.S. as a result of several labor strikes by British suppliers. This action
30、reflects:a.an increased demand for British pounds.b.a decrease in the demand for British pounds.c.an increase in the supply of British pounds for sale.d.a decrease in the supply of British pounds for sale.ANS: C PTS: 1 20. The exchange rates of smaller countries are very stable because the market for their currency is very liquid.a. Trueb. FalseANS: F PTS: 1 21. The phrase the dollar was mixed in trading means that:a.t
copyright@ 2008-2022 冰豆网网站版权所有
经营许可证编号:鄂ICP备2022015515号-1