课程名称︰国际金融
课程性质︰经济系选修
课程教师︰陈旭升
开课学院：社科院
开课系所︰经济系
考试日期（年月日）︰110.04.19
考试时限（分钟）：120
试题 :
Problem 1 (30%) Choose the one alternative that best answers the question.
1. Purchases and sales foreign assets by domestic residents would appear in the
____ account of the balance of payments.
(a) current
(b) capital
(c) trade merchandise
(d) official settlement
2. The sale of American computers to the Spanish government shows up as ____ of
the United States.
(a) a debit on the official reserves account
(b) a credit on the official reserves account
(c) a credit on the trade account
(d) a debit on the current account
3. If a country's income exceeds its spending, then
(a) savings will exceed domestic investment
(b) the nation must run a current account surplus
(c) the nation must run a capital account deficit
(d) all of the above
4. Into what subcategory in the current account do you find the export and imp-
ort of education, insurance, consulting, telecommunications, royalties on films
, etc?
(a) Unilateral Current Transfers, Net
(b) Balance on Goods and Services
(c) Balance on Current Account
(d) Services
5. What is the subcategory in the current account that indicates that the gove-
rnment of a country and other residents gave more money to foreign countries a-
nd residents as gifts and grants than the country itself received from abroad?
(a) Unilateral Current Transfers, Net
(b) Balance on Goods and Services
(c) Balance on Current Account
(d) Services
6. All of the following are the reasons why Gross National Income does not equ-
al Gross Domestic Product in an open economy except:
(a) The capital and labor used to produce the goods in the domestic country do
not need to be owned by domestic residents.
(b) The country may receive transfer payments from abroad or may give transfer
payments to other countries.
(c) The country may receive unilateral transfers (gifts and grants) from abroad
or may give unilateral transfers to other countries.
(d) The capital and labor owned by the country can be located and used to prod-
uce goods in different countries.
Problem 2 (Balance of Payments, 10%) Before the 2008 global economic crisis, o-
ne of the most serious economic problems in the American economy was that of t-
he twin deficits, an expression used to represent a situation in which the cou-
ntry simultaneously had a current-account deficit and fiscal deficit.
1. Based on the national account identities, show how these deficits are relat-
ed.
2. As mentioned in class, it may be misleading to address the current account
deficit using the national account identities. However, under what condition
can we use the identities to discuss the determinants of current account de-
ficit?
Problem 3 (A simple Two-Period Model with habit Formation, 10%) Consider a two-
period model of consumption and savings where consumers have "habits", meaning
that they care about consumption relative to their own past consumption. Thus
preferences are given by:
u(c_t) + \beta u(c_{t+1}-c_t),
where c_t denotes the consumption at time t. Suppose the consumers face a cons-
tant real interest rate r, and so face the constraints:
c_t + s_t = y_t
c_{t+1} = y_{t+1} + (1+r)s_t,
where y_t and y_{t+1} are exogenous endowments at time t and t + 1, respective-
ly. The term s_t denotes savings.
1. Find the Euler euqation linking c_t and c_{t+1}.
2. Provide an interpretation of the Euler equation.
Problem 4 (A simple Two-Period Model with Uncertaintym 50%) Consider a 2-period
representative agent small open economy endowment model, in which the represen-
tative household maximize:
\max_{C_1, C_2} U(C_1) + \beta E_1[U(C_2)],
where
0 < \beta < 1,
U(C) = C - aC^2/2,
and E_1[\cdots] refers to the expected value. Assume the parameter a is suffic-
iently small that marginal utility is always positive in both periods.
The endowment in period 1 is given by Y_1. In period 2, there are two possible
states, and the endowment is
Y_2 = WY_2^H + (1 - W)Y_2^L,
where
Y_2^H > Y_1, Y_2^L = 2Y_1 - Y_2^H,
and W is a random variable:
W ~ Bernoulli(0.5).
That is, W = 1 for state H (boom), and W = 0 for state L (recession). Clearly,
C_2 is also a random variable, and its realizations are denoted as C_2^H for s-
tate H and C_2^L for state L, respectively.
In addition, households are assumed to be endowed with B_0 units of a foreign
bond. In period 1, there bond holdings generate interest income in the amount
of rB_0, where r denotes the interest rate on bonds held between periods 0 and
1. At period 1, the household can allocate its income to two alternative uses:
purchases of consumption goods, which we denote by C_1, and purchase of foreignn
bonds, B_1 - B_0, where B_1 denotes foreign bond holdings at the end of period
1. The interest rate r is determined on world markets and exogenous for the ec-
onomy.