国际金融双语测试题

- 1 - （共 4 页）

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姓

名

学

号

国际金融学（030042

题号

）试卷(1)

一二三四五六七八九十总分

得分

签字

注意事项：所有的答案都必须写在答题纸上，答在试卷上一律无效

PART ONE: Multiple Choices (This part has 6 questions, 2 points each. A total of 12 points)

1．If the Canadian dollar is selling for $ 0.6572 and Japanese yen is selling for $ 0.0083, what is the cross rate between the Canadian dollar and the Japanese yen? 1CAD = ( ) JPY

A 79.181

B 0.0055

C 0.6572

D 0.1263

2．One day, a US local bank is quoting 1USD = 0.6477 GBP. This is a ( )

A direct quotation

B indirect quotation

C dollar quotation

D none of the answers is right

3．If a British speculator expects that the USD would be appreciating against GBP, he/she will ( )

A buy USD call option,

B buy USD put option

C sell US

D futures contract

D take a short position in USD forward contract

4．The following items are included in the “Financial and Capital Account” except ( )

A direct investment

B reserve assets

C portfolio investment

D investment income

5．A U.S. investor travels to China and spends 1000 RMB. He pays with a check drawn on a U.S. bank. What would the credit entry be in the Chinese Balance of Payment ( ) - 2 -

A services

B other investment

C goods

D reserve assets

6．According to the Purchasing Power Parity, if country A…s inflation rate is lower than country B, currency A will be ( ) against currency B.

A appreciating

B depreciating

C selling at a forward premium

D selling at a forward discount

PART TWO: True or False (This part has 15 questions, 1 point each. A total

of 15 points)

Put “T” if you think the statement is right and “F” if it is wrong

1. The foreign exchange market is the largest financial market in the world. ( )

2. In the balance of payments accounts, debit entries reflect decreases in an economy?s foreign assets or increases in for eign liabilities. ( )

3. An option is said to be “in the money” if the strike price is greater than

the current spot rate for a put. ( )

4. Arbitrage activity refers to buying in a market where the price is high and then selling in a market with a lower price. ( )

5. The major defect of the Bretton Woods system is Triffin?s dilemma. ( )

6. Under a fixed exchange rate regime, each country can follow domestic macroeconomic policies independent of the policies of other countries. ( )

7. There is a deficit if the value of credit entries exceeds the debit entries. ( )

8. Systematic risk is the risk that is unique to a particular firm or industry. ( )

9. The Reserve assets will be eventually running out, if a country is experiencing an Overall balance surplus for a long period of time. ( )

10. The Eurocurrency market is less regulated and has smaller interest rate spread. ( ) - 3 -

11. “The exchange rate is fixed against a major currency or some basket of currencies. Active interventio n may be required to maintain the target pegged rate” This is a fixed-peg regime. ( )

12. The bank is quoting USD 1 = RMB 8.9808---9876, as an investor buying

1 US dollar from the bank, you will pay 8.9808 RMB. ( )

13. Having a Current Account deficit indicates that the country is a net

borrower to the rest of the world. ( )

14. The first eurocurrency is eurodollar. ( )

15. Under the Gold standard, the market exchange rate is always equal to the

Mint Par. ( )

PART THREE: Definitions (This part has 4 questions, 3 points each. A total

of 12 points)

1．Economic Exposure

2．Foreign Exchange Futures

3．Cross Rates

4．J-Curve Effect

PART FOUR: Answer the following questions (This part has 4 questions, 6

points each. A total of 24 points)

1. How can capital inflows be viewed as both beneficial and harmful?

2. What are the main aspects of Bretton Woods international monetary system?

3. List at least three ways in which a futures contract differs from a forward contract.

4. Explain the macroeconomic equilibrium.

PART FIVE: Calculation (This part has 3 questions, a total of 21 marks)

1. (6 points) Suppose 1 JPY = 0.0077 USD in London, 1 USD = 2 CHF in

New York, and 1 CHF = 65 JPY in Paris. - 4 -

(a) If you begin by holding 10,000 yen, how could you make a profit from

these exchange rates?

(b) Ignore transaction cost, find the arbitrage profit per yen initially traded.

2. (6 points) The six-month interest rate in USA is 10%; in Mexico it is 12%.

The current spot rate (dollars per peso) is $0.40.

(a) What do you expect the six-month forward rate to be?

(b) Is the peso selling at a premium or discount? Annual rate?

3. (9 points) Suppose you are the treasurer of a U.S. multinational firm that

will receive 1,000,000 Swiss francs in one year. You want to ensure that one Swiss franc is worth at least 0.70 U.S. dollar when the francs are received. The Option Exchange has option contract for 62,500 CHF each, at strike price of 1 CHF =

0.70 USD. The option premium is 0.02 USD per CHF.

(a) How many option contracts do you need to hedge this risk?

(b) Do you want a call or put option on Swiss franc?

(c) When will you excise the option?

(d) When will you let the option expire?

PART SIX: Essay Question (16 points)

What is the current status of China?s Balance of Payments? Are we having Balance of Payments disequilibrium? If we do, what do you thinks the underlying causes are? Does the Balance of Payments disequilibrium have any negative impact on our economy?