学堂在线 International Finance期末考试答案- 北京理工大学
International Finance - 北京理工大学 - 学堂在线
1.单选题 (1分)
A speculator in the futures market wishing to lock in a price at which they could ________ a foreign currency will ________ a futures contract.
Abuy; sell
Bsell; buy
Cbuy; buy
Dnone of the above
正确答案：C
2.单选题 (1分)
Which of the following is NOT an example of a Eurocurrency deposit?
ABritish pounds deposited outside of the United Kingdom
BJapanese yen deposited outside of Japan
CU.S. dollars deposited outside of the United States
DAll of the above could be considered Eurocurrency deposits.
正确答案：D
3.单选题 (1分)
A ________ transaction in the foreign exchange market requires an almost immediate delivery of foreign exchange. ( )
Aspot
Bforward
Cfutures
Dnone of the above
正确答案：A
4.单选题 (1分)
Which of the following is NOT a contract specification for currency futures trading on an organized exchange?
Asize of the contract
Bmaturity date
Clast trading day
DAll of the above are specified.
正确答案：D
5.单选题 (1分)
Which of the following is NOT an argument against dollarization?
AThe dollarized country's central bank can no longer act as a lender of last resort.
BThe dollarized country can no longer profit from seignorage (the ability to profit from the creation of money within its economy).
CThe dollarized country losses sovereignty over its own monetary policy.
DAll of the above are arguments against dollarization from the viewpoint of the affected country.
正确答案：D
6.单选题 (1分)
Most foreign exchange transactions are through the U.S. dollar. If the transaction is expressed as the foreign currency per dollar this known as ________ whereas ________ are expressed as dollars per foreign unit.
AEuropean terms; indirect
BAmerican terms; direct
CAmerican terms; European terms
DEuropean terms; American terms
正确答案：D
7.单选题 (1分)
Given the following quotations (where the dollar is the home currency), what is the annualized forward premium () on the U.S. dollar? Spot rate: 1.305/euro6−monthforwardrate:1.335/euro()
Apremium; 4.4944%
Bpremium; 4.5977%
Cdiscount; 4.4944%
Ddiscount; 4.5977%
正确答案：C
8.判断题 (1分)
The United States, as of May 2007, had the largest official foreign exchange reserves of any nation.
正确答案：错误
9.单选题 (1分)
Two general conclusions can be made from the empirical tests of purchasing power parity ( PPP ):
APPP holds up well over the short run but poorly for the long run and the theory holds better for countries with relatively low rates of inflation.
BPPP holds up well over the short run but poorly for the long run and the theory holds better for countries with relatively high rates of inflation.
CPPP holds up well over the long run but poorly for the short run and the theory holds better for countries with relatively low rates of inflation.
DPPP holds up well over the long run but poorly for the short run and the theory holds better for countries with relatively high rates of inflation.
正确答案：D
10.单选题 (1分)
A speculator that has ________ a futures contract has taken a ________ position.
Asold; long
Bpurchased; short
Csold; short
Dpurchased; sold
正确答案：C
11.单选题 (1分)
Which of the following is NOT part of the Financial Account of the BOP?
Anet foreign direct investment.
Bnet import/export of services
Cnet portfolio investment
Dother Financial items
正确答案：B
12.单选题 (1分)
The ________ version of the theory of PPP says that the spot exchange rate is determined by the relative prices of a similar market basket of goods. The ________ version of PPP says that changes in differential rates of inflation over the years tend to be offset by an equal and opposite change in the spot exchange rate.
Aabsolute; absolute
Brelative; absolute
Cabsolute; relative
Drelative; relative
正确答案：C
13.单选题 (1分)
A ________ currency is expected to devalue or depreciate relative to major currencies. ( )
Asoft or weak
Bhard or strong
Cdeteriorated
Ddevalued
正确答案：A
14.单选题 (1分)
The United States currently uses a ________ exchange rate regime.
Acrawling peg
Bpegged
Cfloating
Dfixed
正确答案：C
15.单选题 (1分)
In general there is consensus that ________ should be free but there is no such consensus that ________ should be free.
Ainternational investment; international goods trade
Binternational investment; international trade
Cinternational trade; international goods trade
Dinternational trade; international investment
正确答案：D
16.判断题 (1分)
Consider the price elasticity of demand. If a product has price elasticity less than one it is considered to have relatively elastic demand.
正确答案：错误
17.单选题 (1分)
When categorizing investments for the financial account component of the balance of payments the ________ is an investment where the investor has no control whereas the ________ is an investment where the investor has control over the asset.
Adirect investment; portfolio investment
Bdirect investment; indirect investment
Cportfolio investment; indirect investment
Dportfolio investment; direct investment
正确答案：D
18.单选题 (1分)
A country that regulates the rate at which its currency is exchanged for all other currencies is considered to have a ________ exchange rate system.
Afixed or managed
Bfloating or flexible
Cforward
Dspot
正确答案：A
19.判断题 (1分)
Use interest rate parity to answer this question. A U.S. investor has a choice between a risk-free one-year U.S. security with an annual return of 4%, and a comparable British security with a return of 5%. If the spot rate is 1.43/£,theforwardrateis1.44/£, and there are no transaction costs, the investor should invest in the U.S. security.
正确答案：错误
20.单选题 (1分)
A forward contract to deliver British pounds for U.S. dollars could be described either as ________________. ()
Abuying dollars forward; buying pounds forward
Bselling pounds forward; selling dollars forward
Cselling pounds forward; buying dollars forward
Dselling dollars forward; buying pounds forward
正确答案：C
21.单选题 (1分)
Peter Simpson thinks that the U.K. pound will cost 1.43/£insixmonths.A6−monthcurrencyfuturescontractisavailabletodayatarateof1.44/£. If Peter was to speculate in the currency futures market, and his expectations are correct, which of the following strategies would earn him a profit?
ASell a pound currency futures contract.
BBuy a pound currency futures contract.
CSell pounds today.
DSell pounds in six months.
正确答案：A
22.单选题 (1分)
Exchange rate pass-through may be defined as
Athe bid/ask spread on currency exchange rate transactions.
Bthe degree to which the prices of imported and exported goods change as a result of exchange rate changes.
Cthe PPP of lesser-developed countries.
Dthe practice by Great Britain of maintaining the relative strength of the currencies of the Commonwealth countries under the current floating exchange rate regime.
正确答案：B
23.单选题 (1分)
Which of the following would NOT be considered a direct investment either into or from the United States?
Athe purchase of U.S. Treasury (debt) securities
BFord Motor Company building an assembly plant in Mexico
CHonda of Japan building a manufacturing plant in Alabama
Dintel purchasing a chip manufacturing plant in Thailand
正确答案：A
24.单选题 (1分)
If we set the real effective exchange rate index between the United Kingdom and the United States equal to 100 in 2005, and find that the U.S. dollar has changed to a value of 91.4, then from a competitive perspective the U.S. dollar is ________.
Aovervalued
Bundervalued
Cequally valued
DThere is not enough information to answer this question.
正确答案：B
25.单选题 (1分)
Assume that a country is experiencing a balance of trade deficit and then suffers a rapid depreciation of it's currency. J-curve theory suggests that the trade balance will adjust in three distinct periods in the following order:
Aquantity adjustment period; pass-through period; currency contract period
Bpass-through period; currency contract period; quantity adjustment period
Ccurrency contract period; pass-through period; quantity adjustment period
Dpass-through period; quantity adjustment period; currency contract period
正确答案：C
26.单选题 (1分)
Balance of payment (BOP) data may be important for any of the following reasons:
ABOP data helps to forecast a country's market potential, especially in the short run.
BThe BOP is an important indicator of a country's foreign exchange rate.
CChanges in a country's BOP may signal a change in controls over payment of dividends and interest.
DAll of the above.
正确答案：D
27.单选题 (1分)
The increase in value of a currency pegged to gold or another currency is known as ________.( )
Aappreciation
Brevaluation
Cstrengthened
Dhardened
正确答案：B
28.单选题 (1分)
Foreign exchange ________ earn a profit by a bid-ask spread on currencies they purchase and sell. Foreign exchange ________, on the other hand, earn a profit by bringing together buyers and sellers of foreign currencies and earning a commission on each sale and purchase. ( )
Acentral banks; treasuries
Bdealers; brokers
Cbrokers; dealers
Dspeculators; arbitragers
正确答案：B
29.单选题 (1分)
Which of the following is NOT a part of the Current Account of BOP?
Anet export/import of goods
BBalance of Trade
Cnet portfolio investment
Dnet export/import of services
正确答案：C
30.单选题 (1分)
If the direct quote for a U.S. investor for British pounds is $1.43/£, then the indirect quote for the U.S. investor would be _______ and the direct quote for the British investor would be ________
A£0.699/;£0.699/
B0.699/£;£0.699/
C£1.43/£; £0.699/$
D£0.699/;1.43/£
正确答案：A
31.单选题 (1分)
Which of the following investment strategies will allow me to make a profit if I anticipate that the value of the Euro, a currency that I do not own, is going to fall over the next 90 days and I am correct in my prediction?
ASell Euros short.
BBuy Euros short.
CSell dollars short.
DBuy Euros long.
正确答案：A
32.单选题 (1分)
The J-curve adjustment path for trade balance adjustments assumes that export products are predominantly priced in the ________ currency and that import products are predominantly priced in the ________ currency.
Adomestic; domestic
Bdomestic; foreign
Cforeign; foreign
Dforeign; domestic
正确答案：B
33.判断题 (1分)
Significant amounts of United States Treasury issues are purchased by foreign investors, therefore the U.S. must earn foreign currency to repay this debt.
正确答案：错误
34.单选题 (1分)
If according to the law of one price the current exchange rate of dollars per British pound is 1.75/£,thenatanexchangerateof1.85/£, the dollar is ________.
Aovervalued
Bundervalued
Ccorrectly valued
Dunknown relative valuation
正确答案：B
35.单选题 (1分)
Which of the following is NOT true regarding nondeliverable forward ( )
ANDFs are used primarily for emerging market currencies.
BPricing of NDFs reflects basic interest rate differentials plus an additional premium charged for dollar settlement.
CNDFs can only be traded by central banks
DAll of the above are true.
正确答案：C
36.单选题 (1分)
Portfolio investment is capital invested in activities that are ________ rather than made for ________.
Ashort term; the long term
Blong term; profit
Cprofit motivated; control
Dcontrol motivated; profit
正确答案：C
37.单选题 (1分)
From the viewpoint of a British investor, which of the following would be a direct quote in the foreign exchange market? ( )
ASF2.40/£
B$1.50/£
C£0.55/euro
D$0.90/euro
正确答案：C
38.单选题 (1分)
The balance of payments is most like a(an) ________.
Acash flow statement
Bbalance sheet
Cincome statement
Dproxy statement
正确答案：A
39.单选题 (1分)
The role of official reserves is ________ under a ________ exchange rate regime.
Aenhanced; floating
Bdiminished; fixed
Cenhanced; fixed
DNone of the above apply.
正确答案：C
40.单选题 (1分)
Dealers sometimes use brokers in the foreign exchange market because the dealers desire ( )
Aspeed
Baccuracy
Cto remain anonymous
Dall of the above
正确答案：D
41.单选题 (1分)
Which of the following does NOT represent a possible mechanism by which capital can be moved from country to country?
Atransfers via the usual international payments mechanism such as regular bank transfers
Btransfers via a physical bearer such as smuggling
Cthe transfer of cash into collectibles
DAll of the above are mechanisms for moving capital from country to country.
正确答案：D
42.单选题 (1分)
A foreign currency ________ contract calls for the future delivery of a standard amount of foreign exchange at a fixed time, place, and price.
Afutures
Bforward
Coption
Dswap
正确答案：A
43.单选题 (1分)
A call option on UK pounds has a strike price of 2.05/£andacostof0.02.What is the break-even price for the option?
A$2.03/£
B$2.07/£
C$2.05/£
DThe answer depends upon if this is a long or a short call option.
正确答案：B
44.主观题 (10分)
Calculate the outright forward rate,
In Japan FOREX market,
Spot rate: EUR 1＝ USD 1.582
If 1-month USD is at premium of 200 points, 2-month USD is at discount of 300 points, what are the outright forward rates?
45.单选题 (1分)
One-year interest rates are currently 2.50% in the United States and 3.70% in Great Britain. The current spot rate between the pound and dollar is $1.9000/£. What is the expected spot rate in one year if the interest rate parity holds? ( )
A$1.9000/£
B$1.9222/£
C$1.8772/£
D$1.8500/£
正确答案：C
46.判断题 (1分)
If a market basket of goods cost 100intheUSand70eurosinFrance,thenthePPPexchangeratewouldbe.70/euro.
正确答案：错误
47.单选题 (1分)
The ________ is a derivative forward contract that was created in the 1990s. It has the same characteristics and documentation requirements as traditional forward contracts except that they are only settled in
Anondeliverable forward
Bdollar only forward
Cvirtual forward
Dinternet forward
正确答案：A
48.单选题 (1分)
A currency that has increased in foreign exchange value relative to a floating rate currency has ________.( )
ARevalued
Bviolated international trade agreements
Cappreciated
Ddeteriorated
正确答案：C
49.单选题 (1分)
The authors identify two tiers of foreign exchange markets: ()
Abank and nonbank foreign exchange
Bcommercial and investment transactions
Cinterbank and client markets.
Dclient and retail market
正确答案：C
50.单选题 (1分)
According to the Big Mac Index, the implied PPP exchange rate is Mexican peso 8.50/1buttheactualexchangerateispeso10.80/1. Thus, at current exchange rates the peso appears to be ________ by ________.
Aovervalued; approximately 21%
Bovervalued; approximately 27%
Cundervalued; approximately 21%
Dundervalued; approximately 27%
正确答案：C
51.判断题 (1分)
In general, a country's exports decrease as foreign income decreases. ( )
正确答案：正确
52.单选题 (1分)
The subcategory that typically dominates the current account is ________.
Agoods (merchandise) trade
Bservices trade
Cincome trade
Dtransfer accounts
正确答案：A
53.判断题 (1分)
Expenditures by U.S. tourists in foreign countries for foreign goods or services are factored into BOP calculations. ( )
正确答案：正确
54.单选题 (1分)
Which of the following is not an attribute of the "ideal" currency?
Amonetary independence
Bfull financial integration
Cexchange rate stability
DAll are attributes of an ideal currency.
正确答案：D
55.单选题 (1分)
A speculative technique whereby the speculator sells an asset that he/she doesn't own, such as a currency, to another party for delivery at a future date is called ________.
Aselling ahead
Bselling behind
Cselling short
Dselling long
正确答案：C
56.单选题 (1分)
A common type of swap transaction in the foreign exchange market is the ________ where the dealer buys the currency in the spot market and sells the same amount back to the same bank in the forward market. ( )
A"forward against spot"
B"forspot"
C"repurchase agreement"
D"spot against forward"
正确答案：D
57.判断题 (1分)
Generally speaking, the theory of absolute purchasing power parity works better for single goods than for a market basket of goods.
正确答案：错误
58.判断题 (1分)
The authors identify a tip for understanding BOP accounting. They recommend that you "follow the cash flow." ( )
正确答案：正确
59.单选题 (1分)
If most major economies are operating under a regime of fixed exchange rates, then a ________ in a country's balance of payments suggests that the country should ________ its currency.
Asurplus; revalue
Bsurplus; devalue
Cdeficit; revalue
Dall of the above
正确答案：A
60.单选题 (1分)
If a country's real effective exchange rate index were to be less than 100, this would suggest an ________ currency.
Aovervalued
Bover compensating
Cundervalued
Dunder compensating
正确答案：C
61.单选题 (1分)
Over the last several years, the United States has run a ________ in the goods trade balance and a ________ in the services trade balance.
Asurplus; deficit
Bsurplus; surplus
Cdeficit; deficit
Ddeficit; surplus
正确答案：D
62.单选题 (1分)
If we set the real effective exchange rate index between Canada and the United States equal to 100 in 1998, and find that the U.S. dollar has risen to a value of 112.6, then from a competitive perspective the U.S. dollar is
Aovervalued.
Bundervalued.
Cvery competitive.
DThere is not enough information to answer this question.
正确答案：A
63.单选题 (1分)
A United States firm had chosen to deposit money in a British bank and have it denominated in U.S. dollars. This is an example of a (an) ________ deposit.()
AImpounded
BEuroyen
CEuropound
DEurodollar
正确答案：D
64.单选题 (1分)
According to the international Fisher Effect, if an investor purchases a five-year U.S. bond that has an annual interest rate of 5% rather than a comparable British bond that has an annual interest rate of 6%, then the investor must be expecting the ________________ at a rate of at least 1% per year over the next 5 years.
ABritish pound; appreciate
BBritish pound; revalue
CU.S. dollar; appreciate
DU.S. dollar; depreciateAnswer: C
正确答案：C
65.单选题 (1分)
You check the Yahoo.com currency web page and find that the Japanese yen is trading at a rate of 113 yen per dollar. This rate of exchange is typically referred to as the ________. ( )
Aforward rate
Bpar rate
Cspot rate
D113 rate
正确答案：C
66.判断题 (1分)
The premium or discount on forward currency exchange rates between any two countries is visually obvious when you plot the interest rates of each country on the same yield curve. The currency of the country with the higher yield curve should be selling at a forward discount. ( )
正确答案：正确
67.单选题 (1分)
It is characteristic of foreign exchange dealers to ( )
Abring buyers and sellers of currencies together but never to buy and hold an inventory of currency for resale.
Bact as market makers, willing to buy and sell the currencies in which they specialize.
Ctrade only with clients in the retail market and never operate in the wholesale market for foreign exchange.
DAll of the above are characteristics of foreign exchange dealers.
正确答案：B
68.单选题 (1分)
The authors discuss the concept of the "Impossible Trinity" or the inability to achieve simultaneously the goals of exchange rate stability, full financial integration, and monetary independence.If a country chooses to have a pure float exchange rate regime, which two of the three goals is a country most able to achieve?
Amonetary independence and exchange rate stability
Bexchange rate stability and full financial integration
Cfull financial integration and monetary independence
DA country cannot attain any of the exchange rate goals with a pure float exchange rate regime.
正确答案：C
69.单选题 (1分)
Given the following two exchange rates, which of the multiple-choice choices represents a potentially profitable tri-lateral arbitrage opportunity?
¥129.87/$
euro 1.1226/$
A¥115.69/euro
B¥114.96/euro
C$0.8908/euro
D$0.0077/¥
正确答案：B
70.单选题 (1分)
When the spot and forward exchange markets are not in equilibrium as described by interest rate parity, the potential for "riskless" arbitrage profit exists. This is called ________.
Acovered interest arbitrage (CIA)
Binterest rate parity
Cthe Fisher Effect
Ddancing on the head of a pin
正确答案：A
71.单选题 (1分)
The ________ includes all international economic transactions with income or payment flows occurring within the year.
Acapital account
Bcurrent account
Cfinancial account
DIMF account
正确答案：B
