国际金融题库第20章.docVIP

International Economics, 10e Global Edition (Krugman/Obstfeld/Melitz) Chapter 20 Financial Globalization: Opportunity and Crisis 20.1 The International Capital Market and the Gains from Trade 1.  If you are offered a gamble in which you win 500 dollars 3/8 of the time and you lose 500 dollars 5/8 of the time, what is your expected payoff and your behavior given that you are a risk-lover? A)  $500, decline the gamble B)  $500, take the gamble C)  -$125, it is unclear what you would do without further information D)  -$125, take the gamble E)  -$125, decline the gamble Answer:  C Page Ref: 629-634 Difficulty: Easy  2.  The two types of trade, intertemporal and pure asset swap ________ perfect substitutes, because ________. A)  are not; asset swapping never relates to intertemporal trade B)  could possibly be; different economic states occur at different points in time C)  are not; asset swapping is immediate and involves only assets, while intertemporal trade takes two time periods and involves both assets and goods/services D)  are; they both offer considerable payoff and are equal in the long run E)  are; they both involve the smoothing out of now and future consumption Answer:  B Page Ref: 629-634 Difficulty: Easy  3.  For the following question assume the following facts: (1) Balance of Payments = 0 prior to the transactions. (2) Person A (who lives in the United States) purchases an airplane from British Airways for $150,000. (3) Person A pays with a check from his account at First Union Bank in the United States. (4) British airways, since it will need dollars in 1 month, deposits the check at the Bank of England. (5) Bank of England deposits the $150,000 at Commonwealth bank, which is located in the United States. Due to the transactions above, what are the effects on the balance of payments? A)  -$150,000 due to deposit of Bank of England (capital account debit) B)  +$150,000 due to import of good (c