英文版国际金融练习题Chapter-5.doc

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INTERNATIONALFINANCE

AssignmentProblems(5)Name:Student#:

I.Choosethecorrectanswerforthefollowingquestions(onlyONEcorrectanswer)(3creditsforeachquestion,totalcredits3x20=60)

1.Whenthesupplyofanddemandforaforeignexchangeintheforeignexchangemarketareexactlythesame,theexchangerateisthe__________.

A.realexchangerate

B.effectiveexchangerate

C.equilibriumexchangerate

D.crossexchangerate

2.AnincreaseinthedemandforFrenchgoodsandserviceswill__________.

A.inducearightwardshiftinthedemandforeuro

B.inducealeftwardshiftinthedemandforeuro

C.resultinarightwardmovementalongthedemandcurveforeuro

D.resultinaleftwardmovementalongthedemandcurveforeuro

3.IfU.S.demandforJapanesegoodsincreasesandJapan’sdemandforU.S.productsalsorisesatthesametime,whichofthefollowingcanyouconcludeinthissituation?

A.TheU.S.dollarwillappreciateagainsttheyen.

B. TheU.S.dollarwilldepreciateagainsttheyen.

C. TheU.S.dollarwillnotchangerelativetotheyen.

D.TheU.S.dollarmayappreciate,depreciate,orremainunchangedagainsttheyen.

4.IfthepriceofapairofNikesneakerscosts$85inU.S,andthepriceofthesamesneakersis€80inParis,thespotrateis$1.35pereuro,theeuro__________.

A.iscorrectlyvaluedaccordingtoPPP

B.iscorrectlyvaluedaccordingtorelativePPP

C.isundervaluedaccordingtoPPP

D.isovervaluedaccordingtoPPP

5.IftheexpectedexchangerateE(SB/A)accordingtotherelativepurchasingpowerparityislowerthanthespotexchangerate(SB/A),wemayconcludethat__________.

A.countryBisexpectedtorunhugeBOPsurpluswithcountryA

B.countryA’sinterestrateisgoingtobelowerthanthatofcountryB’s

C.theexpectedinflationrateincountryAishigherthantheexpectedinflationrateincountryB

D.theexpectedinflationrateincountryA