國際金融英文版習題chater

1、1International FinanceAssignment Problems (2) Name:Student No.:I. Choose the correct answer for the following questions (only ONEcorrect answer) (5 credits for each question, total credits 4 x 15 = 60)1. According to the principle of the balanced balance of payments, if a countryreduces its foreign

2、exchange reserves by $20 million and the statistical discrepancy is in the credit entry of $5 million in a given period of time, the country runs of its balance of payments during that period of time.A. $15 million deficitsB. $25 million deficitsC. $20 million deficitsD. $5 million deficits2. If a c

3、ountry s domestic saving is greater than domestic investment, the country probably has .A. a current account surplusB. a net capital outflowC. a current account deficitD. Both A and B are possible.3. A debit entry in the balance-of-paymentsaccount represents a transaction thatA. a domestic resident

4、receives a payment from abroadB. a domestic resident makes a payment to a foreign residentC. will improve the current account statusD. will have no affects on the nation s foreign exchange reserves4. In terms of balance-of-payments account, which of the following would be recorded as a debit entry i

5、n the U.S. BOP?A. exports of merchandiseB. exports of servicesC. purchase of the U.S. Treasury bonds by non-residentsD. an increase of the deposit in a U.S. resident's account at a foreign bank5. A balance-of-payments deficit is defined as a situation in which .A. the value of payments made to t

6、he foreigners exceeds the value of receiptsreceived from the foreigners in a given period of timeB. the government must borrow in order to meet its budget obligationsC. the value of manufactured good exports is less than the value of imported goodsD. a nation earns much in extra assets or reduced li

7、abilities in its dealings with the rest of the world6. Which of the following would NOT be considered as a typical BOP transaction?A. Toyota USA is a US distributor of automobiles manufactured in Japan by its parent company.B. A U.S. subsidiary of European financial giant, Credit Suisse, pays divide

8、nds to its parent in Zurich.C. A US tourist purchases gifts at a museum in London.D. All are example of BOP transactions.7. The balance of payments is a statistical record which measures the total value of .A. a country s foreign exchange reserves in a certain period of timeB. a country s foreign tr

9、ades between the residents of a country and its non-residents for a given period of timeC. all economic and financial transactions between the residents of a country and its non-residents for a given period of timeD. a country s capital inflows and outflows at a particular date in a given year8. A B

10、ritish pension fund sells some of its holdings of the stocks of U.S.companies in order to buy U.S. corporate bonds. This transaction will affectA. the U.S. international investment positionB. the British international investment positionC. both countries international investment positionD. None of t

11、he above. This is because both countries international investment position unchanged, only the composition of foreign investments in both U.S. and U.K. changes.9. Which of the following transactions is included in China s balance-of-payments account?A. A U.S. embassy in Beijing pays salaries to its

12、American staffs.B. The World Bank furnishes the Chinese government with a loan.C. A U.S. student pays tuition fees for his 4 year-study in Beijing University.D. The Chinese embassy in Washington buys telecommunication equipments from a Chinese company in Shanghai.10. If the U.S. runs current account

13、 deficits, we can expect that .A. it may act as a net debtor in the rest of the worldB. its domestic saving may less than its domestic investmentC. its domestic production is less than its domestic consumptionD. all of the above11. The trade deficit means that .A. residents are importing more goods

14、than they are exportingB. residents are borrowing more funds than they are lendingC. residents are receiving more payments than they are makingD. residents are producing more goods than they are consuming12. Which of the following is an example of an exchange of financial assets?A. the exchange of b

15、utter for wheatB. the exchange of information technologyC. the exchange of a fixed-rate loan for a floating-rate loanD. the exchange of gold for jewelry13. For most countries, the subcategory that typically dominates the current account is .A. unilateral transfersB. goods tradeC. income tradeD. serv

16、ices trade14. When categorizing investments for the financial account component of the balance of payments the is an investment where the investor has noincentive to control whereas the is an investment where the investorwants to control over the assets.A. direct investment, portfolio investmentB. d

17、irect investment, indirect investmentC. portfolio investment, indirect investmentD. portfolio investment, direct investment15. If a country s merchandise exports exceed its imports by $50 million, services trade balance is net $30 million and unilateral transfers made in excess of those received by

18、$5 million, what is the country s current accoun t balance?A. $85 millionB. $75 millionC. $15 millionD. $25 million1. Country A s BOT is .2. Country A s current account balance is .3. Suppose the changes in country A s official reserves are zero in 2010, itscapital and financial account balance MUST

19、 be .4. If country A s official reserves are recorded on the credit side by $10 million in 2010, its capital and financial account balance should be .5. Based on the assumption of question 4, country A has BOP deficit or surplusin 2010? Explain.6. What is the current account balance of a nation with

20、 a government budget deficit of $128 billion, private saving of $806 billion, and domestic capital formation of $777 billion?III. Express the following operations in the Dutch balance of payments in T-accounts: (5 credits for each question, total credits 3 x 5 = 15)a. A Dutch company exports ?100,000 goods to a London company for ?100,000 in bank deposits.b. An import billed for ?150,000 paid with a check drawn on a London bank.c. A Dutch comp