课程名称︰国际金融
课程性质︰经济系必修
课程教师︰曹添旺
开课学院：社会科学院
开课系所︰经济学系
考试日期（年月日）︰2017/04/20
考试时限（分钟）：180分钟
试题 :
1.(15%) Please show how following transactions result in both credit and debit
entries and how they determine (i) the balance on merchandise trade, (ii)
balance on goods, services, and income, (iii) the current account balance, and
(iv) financial account balance. (The United States is the domestic country.)
a.Anautomobile dealer in the United States imports a Swedish automobile
and pays the Swedish auto manufacturer $30,000. The automobile
manufacturer deposits the $30,000 in its U.S. bank account.
b.A college stuednt travels abroad during break from school, spending
$1,700 on hotels.
c.A foreign resident purchases a $40,000 U.S. treasury bill from U.S.
brokerage firm.
d.The U.S. Treasury makes a $500 interest payment to foreign resident that
holds a previously purchased U.S. treasury bill.
e.A U.S. charitable organization, as a humanitarian gesture, donates
$250,000 of what to a country that recently experienced a flood.
f.American firms provide $20,000 of shipping services to Korean firms.
Korean firms pay for these services by transferring some of their checking
account deposits in American banks to the accounts of American shipping
firms in American banks.
2.(15%) Using the following equation
S^P = I + CA + (G - T)
to discuss the effects of government deficits on the current account.
3.(10%) Suppose the one-year forward $/€ exchange rate is $1.32 per euro and
the spot exchange rate is $1.26 per euro. What is the forward premium on euros
(the forward discount on dollars)? What is the difference between the interest
rates on one-year dollar deposits and that on one-year euro deposits (assuming
no repayment risk)?
4A.(15%) Calculate the dollar rates of return on the following assets:
a.A painting whose price rises from $350,000 to $465,000 in a year.
b.A bottle of a rare Burgundy, Domaine de la Romanée-Conti 2011,whose
price rises from $11,300 to $12,656 between 2016 and 2017.
c.A ￡20,000 deposit in a London bank in a year when the interest rate on
pound is 12 percent and the $/￡ exchange rate moves from $1.40 per
pound to 1.26 per pound between 2016 and 2017.
4B.(5%) What would be the real rates of return on the asset in the preceding
question if the price changes described were accompanied by a simultaneous
8 percent increase in all dollar prices?
5.(10%) Suppose the exchange rate of the Indian rupee depreciated against the
dollar. What will be the likely impact of the rupee depreciation on India's
exports and imports? How will the GDP and inflation behave when rupee
depreciates?
6.(10%) Suppose the U.S. net foreign debt is 25 percent of U.S. GDP and foreign
assets and liabilities pay an interest rate of 5 percent per year. What would
be the drain on U.S. GDP (as a percentage) from paying interest on the net
foreign debt? Do you think this is a large number? What if the net foreign
debt were 100 percent of GDP? At what point do you think a country's government
should become worried about the size of its foreign debt?
7.(10%) Do you agree with the view that inflation and interest rate are
positively correlated? How would a fall in the interest rate on money demand
affect inflation rate in the economy? Would a rise in the country's interest
rate adversely affect the economy's GNP? Explain.
8.(10%) What is the short-run effect on the exchange rate of an increase in
domestic real GNP, given expectations about future exchange rates?