英文国际金融练习卷Chapter_2.doc

International Finance Assignment Problems (2) Name: Student No.: I. Choose the correct answer for the following questions (only ONE correct 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 country reduces its foreign 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 deficits B. $25 million deficits C. $20 million deficits D. $5 million deficits 2. If a country’s domestic saving is greater than domestic investment, the country probably has __________. A. a current account surplus B. a net capital outflow C. a current account deficit D. Both A and B are possible. 3. A debit entry in the balance-of-payments account represents a transaction that __________. A. a domestic resident receives a payment from abroad B. a domestic resident makes a payment to a foreign resident C. will improve the current account status D. will have no affects on the nation’s foreign exchange reserves 4. In terms of balance-of-payments account, which of the following would be recorded as a debit entry in the U.S. BOP? A. exports of merchandise B. exports of services C. purchase of the U.S. Treasury bonds by non-residents D. an increase of the deposit in a U.S. residents account at a foreign bank 5. A balance-of-payments deficit is defined as a situation in which __________. A. the value of payments made to the foreigners exceeds the value of receipts received from the foreigners in a given period of time B. the government must borrow in order to meet its budget obligations C. the value of manufactured good exports is less than the value of imported goods D. a nation earns much in extra assets or reduced liabilities in its dealings with the rest of the world 6. Which of the following would NOT be co