国际货币与金融经济学课后习题答案

国际金融（第五版）-课后习题以及答案学习资料国际金融(第五版)-课后习题以及答案国际金融全书课后习题以及答案第一章国际收支复习思考题一、选择题1.《国际收支和国际投资头寸手册》(第六版)将国际收支账户分为( )。

A．经常账户B．资本账户C．储备账户D．金融账户2.国际收支反映的内容是以交易为基础的，其中交易包括( )。

A．交换B．转移C．移居D．其他根据推论而存在的交易3.经常账户包括( )。

A．商品的输出和输入B．运输费用C．资本的输出和输入D．财产继承款项4．下列项目应记入贷方的是( )。

A．反映进口实际资源的经常项目B．反映出口实际资源的经常项目C．反映资产增加或负债减少的金融项目D．反映资产减少或负债增加的金融项目5．若在国际收支平衡表中，储备资产项目为–100亿美元，表示该国( )。

A．增加了100亿美元的储备B．减少了100亿美元的储备C．人为的账面平衡，不说明问题D．无法判断6．下列( )账户能够较好地衡量国际收支对国际储备造成的压力。

A．货物和服务账户差额B．经常账户差额C．资本和金融账户差额D．综合账户差额7．因经济和产业结构变动滞后所引起的国际收支失衡属于( )。

A．临时性不平衡B．结构性不平衡C．货币性不平衡D．周期性不平衡E．收入性不平衡8．国际收支顺差会引起( )。

A．外汇储备增加B．国内经济萎缩C．国内通货膨胀D．本币汇率下降二、判断题1．国际收支是一个流量的、事后的概念。

( )2．国际货币基金组织采用的是狭义的国际收支概念。

( )3．资产减少、负债增加的项目应记入借方。

( )4．由于一国的国际收支不可能正好收支相抵，因而国际收支平衡表的最终差额绝不恒为零。

( )5．理论上说，国际收支的不平衡指自主性交易的不平衡，但在统计上很难做到。

( )6．因经济增长率的变化而产生的国际收支不平衡，属于持久性失衡。

( )7．资本和金融账户可以无限制地为经常账户提供融资。

( )8．综合账户差额比较综合地反映了自主性国际收支状况，对于全面衡量和分析国际收支状况具有重大意义。

货币金融学第十二版课后题答案货币金融学第十二版课后题答案第一章经济学和货币金融学1. 什么是货币金融学？货币金融学是经济学中的一个分支领域，研究货币和金融市场的运作及其对经济总量、价格水平和就业率等方面的影响。

2. 描述货币的组成部分。

货币主要由现金和存款两部分组成。

现金包括纸币和硬币，存款包括支票存款、储蓄存款、时间存款、银行间市场存款等。

3. 描述货币的职能。

货币具有交易媒介、价值尺度、价值储藏和债务履行手段等职能。

4. 描述货币增发的影响。

货币增发可能导致通货膨胀、货币贬值、利率上升、经济不稳定等后果。

第二章货币市场1. 描述货币市场的特征。

货币市场是指短期债券和货币市场基金等金融工具在交易的市场，具有低风险、低收益、高流动性和高度竞争等特征。

2. 描述央行在货币市场中的作用。

央行通过货币政策、公开市场操作等手段影响货币市场利率和流动性，维护货币市场的稳定运转。

3. 描述国库券的特点。

国库券是一种以政府信用为担保和支付利息的短期国债，具有零风险、流动性好、购买门槛低等特点。

第三章利率1. 描述名义利率和实际利率的区别。

名义利率是指借贷协议中的利率，实际利率则考虑通货膨胀等因素后的利率。

2. 描述实际利率对投资的影响。

实际利率越高，对投资的机会成本就越高，从而会减少投资的数量和规模。

3. 描述利率曲线的形态及含义。

利率曲线表现出各种期限的借贷利率之间的关系，常见的包括正常型、倒挂型、平坦型等。

利率曲线的形状反映市场对未来经济情况的预期。

第四章中央银行和货币政策1. 描述中央银行的职能。

中央银行的职能包括银行监管、货币政策、支付系统稳定、国际储备等。

2. 描述开放市场操作的作用。

开放市场操作是央行通过购买或卖出政府债券等金融工具来影响货币市场流动性和利率的工具。

3. 描述货币多重生成过程。

货币多重生成过程指的是银行通过贷款来创造存款，从而进一步带动其他银行贷款和存款的生成的过程。

第五章货币政策的框架1. 描述主要通胀预期测量指标。

《货币金融学》课后习题参考答案第一章货币与货币制度1.解释下列概念:狭义货币、广义货币、准货币、实物货币、格雷欣法则。

答:(1)狭义货币,通常由现金和活期存款组成。

这里的现金是指流通中的通货。

活期存款,在国外是指全部的活期存款,在我国只包括支票类和信用类活期存款。

狭义货币是现实购买力的代表,是各国货币政策调控的主要对象。

(2)广义货币,通常由现金、活期存款、储蓄存款、定期存款及某些短期流动性金融资产组成。

这里的短期流动性金融资产是指那些人们接受程度较高的可在一定程度上执行货币某些职能的信用工具,如商业票据、可转让存单、国库券、金融债券、保险单、契约等。

广义货币扩大了货币的范围,包括了一切可能成为现实购买力的货币形式。

对于研究货币流通整体状况和对未来货币流通的预测都有独特作用。

(3)准货币,也称亚货币。

一般将广义货币口径中除狭义货币以外的部分称为准货币或亚货币。

包括活期存款、储蓄存款、定期存款及某些短期流动性金融资产组成。

这里的短期流动性金融资产是指那些人们接受程度较高的可在一定程度上执行货币某些职能的信用工具,如商业票据、可转让存单、国库券、金融债券、保险单、契约等。

准货币本身虽非真正的货币,但由于它们在经过一定的手续后,能比较容易地转化为现实的购买力,加大流通中的货币供应量。

所以,也称为近似货币。

(4)实物货币,是指以自然界存在的某种物品或人们生产出来的某种物品来充当的货币。

最初的实物货币形式五花八门,各地、各国和各个时期各不相同。

例如,在中国历史上,充当过实物货币的物品种类就有:龟壳、海贝、布匹、农具、耕牛等。

实物货币的缺点在于:不易分割和保存、不便携带,而且价值不稳定,很难满足商品交换的需要。

所以,它不是理想的货币形式,随后被金属货币所取代。

(5)格雷欣法则,是指两种实际价值不同而法定价值相同的货币同时流通时,实际价值高.2.如何理解货币的定义?它与日常生活中的通货、财富和收入概念有何不同?答:(1)货币是日常生活中人们经常使用的一个词,它的含义丰富,在不同的场合有不同的意义。

Answers to End of Chapter QuestionsChapter 1Keeping Up With a Changing World-Trade Flows, Capital Flows, and the Balance Of Payments1. The balance on merchandise trade is the difference between exports of goods,719 and the imports of goods, 1,145, for a deficit of 426. The balance on goods, services and income is 719 + 279 +284 – 1145 - 210 – 269, for a deficit of 342.Adding unilateral transfers to this gives a current account deficit of 391, [-342 + (-49) = -391]. (Note that income receipts are credits and income payments are debits.)2. Because the current account balance is a deficit of 391, then without a statisticaldiscrepancy, the capital account is a surplus of 391. In this problem, however, the statistical discrepancy is recorded as a positive amount (credit) of 11. Hence, the sum of the debits in the balance of payments must exceed the credits by 11.So, the deficit of the current account must be greater than the surplus on thecapital account by 11. The capital account, therefore, is a surplus of 391 – 11 = 380.3. A balance-of-payments equilibrium is when the debits and credits in the currentaccount and the private capital account sum to zero. In the problem above we do not know the private capital account balance. We cannot say, therefore,whether this country is experiencing a balance-of-payments surplus or deficit or if it is in equilibrium.4 The current account is a deficit of $541,830 and the private capital accountbalance is a surplus of $369,068. The U.S., therefore, has a balance ofpayments deficit.5 Positive aspects of being a net debtor include the possibility offinancing domestic investment that is not possible through domestic savings; thereby allowing for domestic capital stock growth whichmay allow job, productivity, and income growth. Negative aspects include the fact that foreign savings may be used to finance domesticconsumption rather than domestic savings; which will compromise the growth suggested above.Positive aspects of being a net creditor include the ownership of foreign assets which can represent an income flows to the crediting country. Further, the net creditor position also implies a net exporting position. A negative aspect ofbeing a net creditor includes the fact that foreign investment may substitute for domestic investment.6 A nation may desire to receive both portfolio and direct investment due to thetype of investment each represents. Portfolio investment is a financialinvestment while direct investment is dominated by the purchase of actual, real, productive assets. To the extent that a country can benefit by each type ofinvestment, it will desire both types of investment. Further, portfolioinvestment tends to be short-run in nature, while FDI tends to be long-run innature. This is also addressed in much greater detail in Chapter 7.7. Domestic Savings - Domestic Investment = Current Account BalanceDomestic Savings - Domestic Investment = Net Capital FlowsTherefore, Current Account Balance = Net Capital Flows8 Using the equations above, private savings of 5 percent of income, governmentsavings of -1 percent, and investment expenditures of 10 percent would results ina current account deficit of 6 percent of income and a capital account surplus (netcapital inflows) of 6 percent of income. This could be corrected with areduction in the government deficit (to a surplus) and/or an increase in private savings.Chapter 2The Market for Foreign Exchange1. Because it costs fewer dollars to purchase a euro after the exchange rate change,the euro depreciated relative to the dollar. The rate of depreciation (in absolute value) was [(1.2168 – 1.2201)/1.2201]100 = 0.27 percent.2. Note that the rates provided are the foreign currency prices of the U.S. dollar.Every value has been rounded to two decimal places which may cause somedifferences in answers.3 The cross rate is 1.702/1.234 = 1.379 (€/£), which is smaller in value than thatobserved in the London market. The arbitrageur would purchase £587,544($1,000,000/1.702) with the $1 million in the New York market. Next theywould use the £587,544 in London to purchase €837,250 (£587,544*1.425).Finally, they would sell the €837,250 in the New York market for $1,033,167(€837,250*1.234). The profit is #33,167.4. Total trade is (163,681 + 160,829 + 261,180 + 210, 590) = 796,280. Trade withthe Euro area is (163,681 + 261,180) = 424,861. Trade with Canada is (160,829 + 210,590) = 371,419. The weight assigned to the euro is 424,861/796,280 =0.53 and the weight assigned to the Canadian dollar is 0.47. (Recall the weightsmust sum to unity.)Because the base year is 2003, the 2003 EER is 100. The value of the 2004 EER is:[(0.82/0.88)•0.53 + (1.56/1.59)•0.47]•100 = (0.4939 + 0.4611)•100 = 95.4964, or95.5. This represents a 4.5 percent depreciation of the U.S. dollar.5 The real effective exchange rate (REER) for 2003 is still 100. The real rates ofexchange are, for 2003, 0.88•(116.2/111.3) = .9187, 1.59•(116.2/111.7) = 1.6541, and for 2004, 0.82•(119.0/114.4) = 0.8530, 1.56•(119.0/115.6) = 1.6059. The value of the 2004 REER is:[(0.8530/0.9187)•0.53 + (1.6059/1.6541)•0.47]•100 = (0.4921 + 0.4563)•100 =94.84, or 94.8. This represents a 5.2 percent depreciation of the U.S. dollar inreal terms6. This is a nominal appreciation of the euro relative to the U.S. dollar. The percentchange is [(1.19 –1.05)/1.05]•100 = 13.3 percent.7. The January 200 real exchange rate is 1.05•(107.5/112.7) = 1.0016. The May2004 real rate is 1.19•(116.4/122.2) = 1.1335.8 In real terms the euro appreciated relative to the U.S. dollar. The rate ofappreciation is [(1.1335 – 1.0016)/1.0016]*100 = 13.17 percent.9 Absolute PPP suggests the May 2004 exchange rate should be 122.2/116.4 =1.0498. The actual exchange rate is 1.19. Hence, the euro is overvaluedrelative to the U.S. dollar by (1.19 –1.0498)/1.0498]•100 = 13.35 percent.10Relative PPP can be used to calculate a predicted value of the exchange rate as: S PPP = 1.05•[(122.2/112.7)/(116.4/107.5)] = 1.0014.11. The actual exchange rate is 1.19. Hence, the euro is overvalued relative to theU.S. dollar by (1.19 –1.0014)/1.0014]•100 = 18.83 percent.Chapter 3Exchange Rate Systems, Past to Present1. Ranking the various exchange rate arrangements by flexibility is not so clearcut. Nonetheless the arrangements described in this chapter are (from fixedto flexible): dollarization, currency board, commodity (standard) peg,dollar (standard) peg, currency basket peg, crawling peg, managed float,flexible.2. The two primary functions of the International Monetary Fund are:surveillance of member nations' macroeconomic policies, and to provideliquidity to member nations experiencing payments imbalances.3. The value of the Canadian dollar relative to gold is CAN$69 (1.38 • $50) andthe value of the British pound relative to gold is £33.33 ($50/1.50).4. The exchange rate between the Canadian dollar and the British pound isC$/£2.07 (1.38 • 1.50).5. The currency value of the peso can be expressed as $0.50 + €.50=P1. Theexchange rate between the dollar and the euro can be used to convert the euroamount to its dollar equivalent of $0.55. Hence, $1.05=P1, or and exchangevalue of 0.952 P/$. Using the exchange rate between the dollar and the euroagain, the exchange rate between the peso and the euro is 0.1.048 P/€ (0.952P/$ • 1.10 $/€).6. Because $1.05 is the currency content of the basket, as shown above, and$0.50 of that content is attributable to the dollar, the weight assigned to thedollar is 0.50/1.05 = 0.476, or 47.6 percent. Because the weights must sumto unity, the weight assigned to the euro is 52.4 percent.7. The main difference between the two systems was that, in the Smithsoniansystem, the dollar was not pegged to the value of gold. One reason that thesystem was short was because there was little confidence that U.S. economicpolicy would be conducted in a manner conducive to a system of peggedexchange rates.8. The principle responsibilities of a currency board are to issue domesticcurrency notes and peg the value of the domestic currency. A currency boardis not allowed to purchase domestic debt, act as a lender of last resort, or setreserve requirements.9. The Lourve accord established unofficial limits on currency value movements.In a sense, it was peg with bands for each of the main currencies (dollar, yenand mark).10. Differences in the fundamental determinants of currency values between thepegging country and the other country should be considered. To this point of the text, the rate of inflation is a good example. Relative PPP can be used to determine the rate of crawl.11. Under a currency board system, a nation still maintains its domestic currency.Hence, policymakers can change exchange rate policies and monetary policies if they so desire. When a nation dollarizes and disposes of its domesticcurrency it no longer has this option.Chapter 4The Forward Currency Market and International Financial Arbitrage1. Given that the exchange rate is expressed as dollars to euros, we treat the dollar as the domestic currency. Note also that interest rates are quoted on an annual basis even though the maturity period is only one month. In this problem we divide the interest rates by 12 to put them on a one-month basis.a. The interest rate differential, therefore, is (1.75%/12 - 3.25%/12) = -0.125%.The forward premium/discount, expressed as a percentage, is calculated as: ((F-S)/S)•100 = ((1.089 –1.072)/1.072)•100=1.5858%b. Transaction costs are shown in the figure above by the dashed lines that interestthe horizontal axis at values of -1.00 and 1.00.c. The positive value indicates that the euro is selling at a premium. In addition,the interest rate differential favors the euro-denominated instrument. Hence, a saver shift funds to euro-denominated instruments.2. Using the provided information:(1.75/12) – (3.25/12) < [(1.089 - 1.072/1.072)]•100-0.125% < 1.5858%.3. The four markets are graphed below. An explanation follows.Graph 1, the spot market for the euro.R – R*450 (F-S)/S-0.125 1.58581.00 -1.00 $/€ $/€Graph 4, U.S. loanable funds Graph 5, Euro loanable fundsIn graph 1, the demand for the euro rises as international savers shift funds into euro-denominated instruments. In graph 2, the supply of euros increases in the forward market. (Consider a U.S. saver that moves funds into a euro-denominated instrument. They would desire to sell the euro forward so they may convert euro-denominated proceeds at the time of maturity into their dollar equivalent.) Graph 3 illustrates a decrease in loanable funds in the United States as savers shift funds to euro-denominated instruments. Graph 4 illustrates the increase in thesupply of loanable funds that occurs when savers shift funds to the euro-denominated instrument.4. Because (1.03125) > (1.04250)(1.4575/1.5245) = 0.9967, an arbitrage opportunityexists in this example if one were to borrow the pound and lend the euro.Suppose you were to borrow one pound, the steps are then:a. Borrow £1, convert to €1.5245 on the spot market.b. Lend euros, yielding €1.5245•(1.03125) = €1.5721.c. See euros forward, yielding €1.5721/1.4575 = £1.0787.d. Repay the pound loan at £1•(1.04250) = £1.04250.e. The profit is £0.0362, or 3.62 percent.5. Because interest rates are quoted as annualized rates, we need to divide eachinterest rate by 4 (12/3). The uncovered interest parity equation is:R -R* = (S e +1 - S) /Sa. Rewriting the equation for the expected future expected exchange rate yields:S e+1 = [(R- R*) + 1]Sb. Using the values given yields the expected future spot rateS e+1 = [(0.0124/4 - 0.0366/4) + 1]•1.5245 = 1.5153.6. Given this information, we can calculate the forward premium/discount with theUIP condition:(F - S)/S = R - R*The interest differential is 1.75% - 3.25% = 1.5%. This is the expected forward premium on the euro. Hence, (F – 1.08)/1.08 = 0.015 implies that F = 1.0962. 7. We can adjust for the shorter maturity by dividing the interest rates by 2 (12/6).Now the interest differential is 0.75%, still a forward premium on the euro. The forward rate now is (F – 1.08)/1.08 = 0.0075 implies that F = 1.0881.8. The U.S. real rate is 1.24% – 2.1% = -0.86% and the Canadian real rate is 2.15% –2.6% = -0.45%. Ignoring transaction costs, because the real interest rates are notequal, real interest parity does not hold.9. Uncovered interest parity is R -R* = (S e+1 - S) /S + ρ.a. Using the same process as in question 5 above, the expected future spot rate is:S e+1 = [(R- R*) + 1]S,S e+1 = [(0.075 - 0.035) + 1]•30.35 = 31.564.b. Using the same process as in question 5 above, the expected future spot rate is:S e+1 = [(R- R*) + 1 - ρ]S,S e+1 = [(0.075 - 0.035) + 1 –0.02]•30.35 = 30.957.10. Because the forward rate, 30.01, is less than the expected future spot rate, 30.957,you should sell the koruna forward. For example, $1 would purcase k30.957, which you could sell forward yielding k30.957/30.01 = $1.0316.11. International financial instruments:a. Global Bond: long term instruments issued in the domestic currency.b. Eurobond: term is longer than one year and is issued in a foreign currency.c. Eurocurrency: keyword is that it is a deposit.d. Global equity: keyword is that it is a share.Chapter 7The International Financial Architecture and Emerging Economies1. The difference between direct and indirect financing has to do with whether theborrower and lender seek each other out or whether an intermediary matchesborrowers and lenders. Direct financing requires no intermediary to matchsavers and borrowers. An economy will benefit from having both direct and indirect financing because both are appropriate ways to save and invest underdifferent circumstances. As discussed in the text, financial intermediaries absorba fraction of each saver's dollar that is borrowed. Thus, the intermediary takessome of the funds that otherwise would have gone to a borrower. However, the financial intermediary provides an important service by reducing informationasymmetries, allowing savers to pool risk, and matching risk and return.Therefore, when an individual cannot research these issues on his/her own, the intermediary is necessary to help the financial markets operate. However, astrong bond market, in which borrowers and savers can directly interact, allows for informed parties to save the funds that otherwise would go to an intermediary.This, in turn, uses the savings more efficiently.2. Portfolio flows are relatively short term in nature (have a shorter term to maturity),involve lower borrowing costs, and can generate near-term income. They also do not require a firm to give up control to a foreign investor. Consequently, they may help to improve capital allocation within an economy and help the economy's financial sector develop. These are all potential benefits of portfolio investments.By the same token, however, they are also relatively easy to reverse in direction, which is a potential disadvantage of portfolio investment.On the other hand, foreign direct investment (FDI) involve some degree ofownership and control of a foreign firm, are typically long term in nature, and help provide a stabilizing influence on a nation's economy. As such, FDI is typically more difficult to arrange.It is not advantageous to rely on either type of investment exclusively, in so far as each type accomplishes different goals for an economy. Both near-andlong-term capital are important for an economy's growth.3. As either portfolio investment of FDI increase, the demand for the local currencyrises (e.g., there is a shift from D0 to D1), which puts upward pressure on the value of the currency, from S0 to S1. If the central bank expects to hold the value of the currency constant at S0, it will have to increase the quantity of the domesticcurrency supplied (e.g., accommodate the excess quantity demanded at the initial spot rate S0) to maintain the peg. The opposite would hold for capital outflows.4. Suppose that a multinational bank (MNB) headquartered in a developed economyenters a developing economy. The MNB has gained considerable expertise in working as a financial intermediary, and likely has achieved economies of scale in doing so. By entering a foreign market, it helps to allocate the savings moreefficiently through its intermediation services; which in turn will lead to additional economic development. Specifically, it should help to make sure that the best investment projects are funded. Moreover, the competition it introduces into the capital market helps to improve the quality of the indigenous financialintermediaries. This, in turn, should also add to financial stability.5. Savers and borrowers can also benefit from the regulation of financialintermediaries when portfolio capital flows dominate a country's capital inflows.It can be argued that regulation to limit short-term inflows can stabilize theeconomy and that these regulations can be gradually lifted as the economybecomes more stable (financial markets develop) and resilient to external shocks.These regulations do impose costs in that they require resources to enforce, and may inhibit otherwise helpful capital inflows which may aid economicdevelopment. However, these costs must be considered against the potential losses that may be incurred if the absence of capital controls would lead to more volatile and capital markets (which may deter the inflow of foreign capital).6. Policymakers should undertake actions that attract both portfolio capital flows andFDI flows. Actions that improve transparency in both the private a public sector reduces information asymmetries and their associate problems thereby making portfolio flows more stable, in other words, reducing the risk of massive capital outflows. Policymakers may also undertake actions that promote education,improve the tax structure and tax collection, and improve the countriesinfrastructure. These actions may, in turn, attract FDI.7. In the following two examples it is assumed that the policymaker maintains apegged-exchange rate regime and does not opt for a floating-rate regime. Hence, the policymaker may either intervene and maintain the peg or change the value of the peg. In both cases there is pressure for the domestic currency to appreciate visa vis the foreign currency.a. If the exchange rate pressure is only temporary in nature, then the policymakermay intervene by accommodating the excess quantity demanded, as explained in question 3 above.b. Because the exchange rate pressure is longer-term in nature, the policymakerwould be well advised to revalue the domestic currency.8. The World Bank was initially established to help countries rebuild after WWIIand in the 1960s expanded to also make long term loans to developing nations in order to help reduce poverty and improve living standards. Recently, some of the World Bank's activities have begun to overlap the IMF's activities to finance long-term structural adjustments and provide refinancing for some heavilyindebted countries. Critics may argue that the tasks that are duplicated by the IMF and the World Bank create conflicting goals for the World Bank. Thus, the two organizations may each benefit by focusing on different aims. For instance, the IMF may return to financing shorter-term objectives and leave the World Bank to worry about longer-term projects.Another conflicting line of reasoning involves donors' expectation that the World Bank maintain a revenue stream form its projects. This can be argues asunrealistic, however, in that the poorest countries are less likely to yield a payoff for the needed projects; and these are precisely the countries that the World Bank is designed and intended to help. On the other hand, the less risky projects,which could provide a positive revenue stream are likely to attract private capital.9. The first cause of a crisis could be an imbalance in the economy. In other words,an incongruity in economic fundamentals could cause a crisis. Possibleindicators include theoretical divergences between various economic variables such as the exchange rate and interest rates, income, and money supply. In terms of evaluation, if fundamental economic variables seem to be out of line, there may be an impending crisis.A second cause is that of self-fulfilling expectations and contagion effects. Inthis case, mere expectations of a potential inability to maintain a specifiedexchange rate or a slight incongruity between economic conditions and the market exchange rate may cause a cascade of speculation that leads to a crisis. Since this is based on perception, it is difficult to find an indicator. One possibleindicator would be trading volumes of currency for countries that may be at risk from the viewpoint of economic fundamentals. If trading volumes grew quickly, a crisis may be on the horizon.Finally, the structural moral hazard problem may indicate a crisis. In this case, a credit rating bureau, such as Moody's may provide the data needed to indicate a potential crisis. The quality of the credit rating would be relatively easily interpreted to indicate a potential crisis.10. It can be argued that such below market interest rate loans are critical for a developing nation's economy in order for the economy to grow unburdened by high interest payments when it is trying to funnel profits back into the economy and sustain growth. Conversely, providing these non-market rate loans can also be argued to distort the market for loanable funds and attract inefficientinvestment. Students' perspectives will vary as to which argument is the best.Chapter 8Traditional Approaches to Exchange-Rate and Balance-Of-Payments Determination1. Using the formula provided in the question, the elasticity of foreign exchangedemand is, in absolute value()(),5236.01818.00952.020.100.12/100.120.12002202/1220200==⎥⎦⎤⎢⎣⎡+-⎥⎦⎤⎢⎣⎡+-and the elasticity of foreign exchange supply is()().5782.01818.01053.020.100.12/100.120.12001802/1180200==⎥⎦⎤⎢⎣⎡+-⎥⎦⎤⎢⎣⎡+-2. A 1 percent depreciation of the Canadian dollar results in a 0.52 percent declinein imports demanded and a rise of 0.58 percent in exports supplied.3. In absolute value, the smallest elasticity measure (most inelastic) is Germany’selasticity of import demand from the U.K. In absolute value, the largestelasticity meas ure (most elastic) is the United States’ elasticity of demand forimports from Germany.4. Table 8-1 provides measures of the price elasticity of import demand. If theU.S. dollar depreciates relative to the Japanese yen, U.S. exports becomerelatively less expensive to Japanese consumers and Japanese exports becomerelatively more expensive to U.S. consumers.a. The U.S. quantity of imports demanded from Japan falls by 1.13 percent.b. Japan’s quantity of imports demanded from the U.S. rises by 0.72 p ercent.c. Because U.S. exports rise and imports decline, the trade balance should improve.5. The trade balance may not improve in the short-run because of pass-through andJ-curve effects. Over a longer time horizon, import demand is relative moreelastic and the trade balance should improve.6. If the Canadian dollar depreciates relative to the U.S. dollar, then the quantity ofhockey pucks demanded declines. Hence, Slovakian manufacturers would have to absorb all of the exchange rate change in their profit margins and the price of hockey pucks would have to decline by 5 percent for the quantity demanded to remain unchanged.7. Using the values given in the problem:a. real income, y, equals c + i + g + x = $23,500, absorption, a, equals c + i + g +im = $24,000.b. Net exports, x - im, equals -$500. Therefore, there is a trade deficit of $500.8. Net exports now equal $550 - $950 = $400. The devaluation did improve theexternal balance.9. The advertising campaign would induce consumers to increase expenditures ondomestic output and decrease expenditures on foreign output. Domesticabsorption will rise and, if expenditures on imports decrease, the trade balance improves.10. As the U.S. economy expands, we would expect real income and real absorptionto increase. On the one hand, if real income increases more than real absorption, net exports will rise. This would lead to an appreciation of the U.S. dollar. If, on the other hand, real absorption rises faster than real income, net exports fall.This would lead to a depreciation of the U.S. dollar.Chapter 9Monetary and Portfolio Approaches to Exchange-Rate andBalance-of-Payments Determination1. Using the formula provided on page 222, m(DC + FER) = kSP*y.a. The money stock is 2($1,000 + $80) = $2,160 million.b. The level of real income is: [2($1,000 + $80)]/[(0.20)(1.2)(2)] = $4,500 million.2 An open market purchase of securities in the amount of $10 million:a. A fixed exchange rate regime requires a decrease in foreign reserves in anequal amount. Hence, this action results in a balance of payments deficit inthe amount of $10 million.b. A flexible exchange rate regime results in a new spot exchange rate of 2.019,which is a depreciation of the domestic currency. This problem is solved byusing the value for real income derived in 5 b above: [(2($1,010 +80)]/[(0.20)(1.2)($4,500)] = 2.019.3. The wealth identity is given on page 229 as W≡ M + B+ SB*. An open marketsale of securities would reduce bank reserves, increasing the domestic interest rate.Individuals would shift from foreign bonds to domestic bonds, leading to anappreciation of the domestic currency. Under a fixed exchange rate, the open market sale would result in an improvement of the domestic nation’s balance of payments. (The elasticity diagrams in Chapter 8 are useful in answering thisquestion.)4. This answer is an illustration of problem 3 under flexible exchange rates. Theopen market sale would cause an increase in the demand for the domesticcurrency and the domestic currency would appreciate as a result.5. The wealth identity is given on page 315 as W≡ M + B SB*. From the foreignnation it is W ≡ M* + B* + (1/S)B. An open market sale of securities by theforeign central bank would reduce foreign bank reserves, increasing the foreign interest rate relative to the domestic interest rate. Individuals would shift from domestic bonds to foreign bonds, leading to an depreciation of the domesticcurrency.Chapter11Economic Policy with Fixed Exchange Rates(Chose the right answers from the following 10 answers by yourself . SuGuangjin）1. Achieving a balance-of-payments surplus requires that the sum of the capitalaccount balance and current account balance is positive, which requires a higher interest rate to attract greater capital inflows and lower real income to dampen import spending. Consequently, the BP schedule would lie above and to the left of the position it otherwise would have occupied if the external-balanceobjective were to ensure only a balance-of- payments equilibrium. Undoubtedly, if the central bank felt pressure to sterilize under the latter objective, the pressure to do so would be greater if it seeks to attain a balance-of-payments surplus, which would require the central bank to steadily acquire foreign-exchangereserves. In the absence of sterilization, the nation's money stock would steadily decline.1. In this situation, variations in the domestic interest rate relative to interest rates inother nations would have not effect on the nation's capital account balance and its balance of payments. Its BP schedule, therefore, would be vertical. Anexpansionary fiscal policy, given a fixed exchange rate (as assumed in thischapter), would cause the IS schedule to shift rightward, initially inducing a rise in equilibrium real income. This, however, would cause import spending toincrease, and the nation would experience a balance-of-payments deficit, which would place downward pressure on the value of its currency. To prevent achange in the exchange rate, the central bank would have to sell foreign exchange reserves. If this intervention is unsterilized, then the nation's money stock would decline, ultimately causing the LM schedule to shift back too a final IS-LMequilibrium at a point vertically above the initial equilibrium point, along thevertical BP schedule.3. A reduction in the quantity of money shifts the LM schedule leftward. At thenew IS-LM equilibrium, the nominal interest rate rises and real income declines.Irrespective of the shape of the BP schedule, this would result in a balance ofpayment surplus, which would tend to place upward pressure on the value of the nation's currency. To maintain a fixed exchange rate, the central bank would have to purchase foreign exchange reserves. If this foreign-exchange-market intervention is unsterilized, then the nation's money stock increases, causing the LM schedule to shift back to the right. Ultimately, the original IS-LMequilibrium is re-attained.4. If capital is highly mobile, a drop in government spending will likely cause aprivate payments deficit. The fall in income will cause a decrease in imports anda trade surplus. As the domestic interest rate increases, however, the capitaloutflow will lead to a private payments deficit. If capital is not mobile, thecapital outflows are likely not large enough to counteract the effect of a drop in imports. Therefore, a private payments surplus would result.。

Answers to End of Chapter QuestionsChapter 1Keeping Up With a Changing World-Trade Flows, Capital Flows, and the Balance Of Payments1. The balance on merchandise trade is the difference between exports of goods, 719 and theimports of goods, 1,145, for a deficit of 426. The balance on goods, services and income is 719 + 279 +284 – 1145 - 210 – 269, for a deficit of 342. Adding unilateral transfers to this gives a current account deficit of 391, [-342 + (-49) = -391]. (Note that income receipts are credits and income payments are debits.)2. Because the current account balance is a deficit of 391, then without a statisticaldiscrepancy, the capital account is a surplus of 391. In this problem, however, the statistical discrepancy is recorded as a positive amount (credit) of 11. Hence, the sum of the debits in the balance of payments must exceed the credits by 11. So, the deficit of the current account must be greater than the surplus on the capital account by 11. The capital account, therefore, is a surplus of 391 – 11 = 380.3. A balance-of-payments equilibrium is when the debits and credits in the current account andthe private capital account sum to zero. In the problem above we do not know the private capital account balance. We cannot say, therefore, whether this country is experiencinga balance-of-payments surplus or deficit or if it is in equilibrium.4 The current account is a deficit of $541,830 and the private capital account balance is asurplus of $369,068. The U.S., therefore, has a balance of payments deficit.5 Positive aspects of being a net debtor include the possibility of financing domesticinvestment that is not possible through domestic savings; thereby allowing for domestic capital stock growth which may allow job, productivity, and income growth. Negative aspects include the fact that foreign savings may be used to finance domestic consumption rather than domestic savings; which will compromise the growth suggested above.Positive aspects of being a net creditor include the ownership of foreign assets which can represent an income flows to the crediting country. Further, the net creditor position also implies a net exporting position. A negative aspect of being a net creditor includes the fact that foreign investment may substitute for domestic investment.6 A nation may desire to receive both portfolio and direct investment due to the type ofinvestment each represents. Portfolio investment is a financial investment while direct investment is dominated by the purchase of actual, real, productive assets. To the extent that a country can benefit by each type of investment, it will desire both types of investment.Further, portfolio investment tends to be short-run in nature, while FDI tends to be long-run in nature. This is also addressed in much greater detail in Chapter 7.7. Domestic Savings - Domestic Investment = Current Account BalanceDomestic Savings - Domestic Investment = Net Capital FlowsTherefore, Current Account Balance = Net Capital Flows8 Using the equations above, private savings of 5 percent of income, government savings of-1 percent, and investment expenditures of 10 percent would results in a current account deficit of 6 percent of income and a capital account surplus (net capital inflows) of 6 percent of income. This could be corrected with a reduction in the government deficit (to a surplus) and/or an increase in private savings.Chapter 2The Market for Foreign Exchange1. Because it costs fewer dollars to purchase a euro after the exchange rate change, the eurodepreciated relative to the dollar. The rate of depreciation (in absolute value) was [(1.2168 – 1.2201)/1.2201]100 = 0.27 percent.2. Note that the rates provided are the foreign currency prices of the U.S. dollar. Every valuehas been rounded to two decimal places which may cause some differences in answers.3 The cross rate is 1.702/1.234 = 1.379 (€/£), which is smaller in value than that observedin the London market. The arbitrageur would purchase £587,544 ($1,000,000/1.702) with the $1 million in the New York market. Next they would use the £587,544 in London to purchase €837,250 (£587,544*1.425). Finally, they would sell the €837,250 in the New York market for $1,033,167 (€837,250*1.234). The profit is #33,167.4. Total trade is (163,681 + 160,829 + 261,180 + 210, 590) = 796,280. Trade with the Euro areais (163,681 + 261,180) = 424,861. Trade with Canada is (160,829 + 210,590) = 371,419. The weight assigned to the euro is 424,861/796,280 = 0.53 and the weight assigned to the Canadian dollar is 0.47. (Recall the weights must sum to unity.)Because the base year is 2003, the 2003 EER is 100. The value of the 2004 EER is:[(0.82/0.88)•0.53 + (1.56/1.59)•0.47]•100 = (0.4939 + 0.4611)•100 = 95.4964, or 95.5.This represents a 4.5 percent depreciation of the U.S. dollar.5 The real effective exchange rate (REER) for 2003 is still 100. The real rates of exchangeare, for 2003, 0.88•(116.2/111.3) = .9187, 1.59•(116.2/111.7) = 1.6541, and for 2004, 0.82•(119.0/114.4) = 0.8530, 1.56•(119.0/115.6) = 1.6059. The value of the 2004 REER is:[(0.8530/0.9187)•0.53 + (1.6059/1.6541)•0.47]•100 = (0.4921 + 0.4563)•100 = 94.84, or94.8. This represents a 5.2 percent depreciation of the U.S. dollar in real terms6. This is a nominal appreciation of the euro relative to the U.S. dollar. The percent changeis [(1.19 – 1.05)/1.05]•100 = 13.3 percent.7. The January 200 real exchange rate is 1.05•(107.5/112.7) = 1.0016. The May 2004 real rateis 1.19•(116.4/122.2) = 1.1335.8 In real terms the euro appreciated relative to the U.S. dollar. The rate of appreciationis [(1.1335 – 1.0016)/1.0016]*100 = 13.17 percent.9 Absolute PPP suggests the May 2004 exchange rate should be 122.2/116.4 = 1.0498. The actualexchange rate is 1.19. Hence, the euro is overvalued relative to the U.S. dollar by (1.19 – 1.0498)/1.0498]•100 = 13.35 percent.10Relative PPP can be used to calculate a predicted value of the exchange rate as: S PPP = 1.05•[(122.2/112.7)/(116.4/107.5)] = 1.0014.11. The actual exchange rate is 1.19. Hence, the euro is overvalued relative to the U.S. dollarby (1.19 – 1.0014)/1.0014]•100 = 18.83 percent.Chapter 3Exchange Rate Systems, Past to Present1. Ranking the various exchange rate arrangements by flexibility is not so clear cut.Nonetheless the arrangements described in this chapter are (from fixed to flexible): dollarization, currency board, commodity (standard) peg, dollar (standard) peg,currency basket peg, crawling peg, managed float, flexible.2. The two primary functions of the International Monetary Fund are: surveillance of membernations' macroeconomic policies, and to provide liquidity to member nations experiencing payments imbalances.3. The value of the Canadian dollar relative to gold is CAN$69 (1.38 • $50) and the valueof the British pound relative to gold is £33.33 ($50/1.50).4. The exchange rate between the Canadian dollar and the British pound is C$/£ 2.07 (1.38• 1.50).5. The currency value of the peso can be expressed as $0.50 + €.50=P1. The exchange ratebetween the dollar and the euro can be used to convert the euro amount to its dollar equivalent of $0.55. Hence, $1.05=P1, or and exchange value of 0.952 P/$. Using the exchange rate between the dollar and the euro again, the exchange rate between the peso and the euro is 0.1.048 P/€ (0.952 P/$ • 1.10 $/€).6. Because $1.05 is the currency content of the basket, as shown above, and $0.50 of thatcontent is attributable to the dollar, the weight assigned to the dollar is 0.50/1.05 = 0.476, or 47.6 percent. Because the weights must sum to unity, the weight assigned to the euro is 52.4 percent.7. The main difference between the two systems was that, in the Smithsonian system, the dollarwas not pegged to the value of gold. One reason that the system was short was because there was little confidence that U.S. economic policy would be conducted in a manner conducive to a system of pegged exchange rates.8. The principle responsibilities of a currency board are to issue domestic currency notesand peg the value of the domestic currency. A currency board is not allowed to purchase domestic debt, act as a lender of last resort, or set reserve requirements.9. The Lourve accord established unofficial limits on currency value movements. In a sense,it was peg with bands for each of the main currencies (dollar, yen and mark).10. Differences in the fundamental determinants of currency values between the peggingcountry and the other country should be considered. To this point of the text, the rate of inflation is a good example. Relative PPP can be used to determine the rate of crawl.11. Under a currency board system, a nation still maintains its domestic currency. Hence,policymakers can change exchange rate policies and monetary policies if they so desire.When a nation dollarizes and disposes of its domestic currency it no longer has this option.Chapter 4The Forward Currency Market and International Financial Arbitrage1. Given that the exchange rate is expressed as dollars to euros, we treat the dollar as the domestic currency. Note also that interest rates are quoted on an annual basis even though thematurity period is only one month. In this problem we divide the interest rates by 12 to put them on a one-month basis.a. The interest rate differential, therefore, is (1.75%/12 - 3.25%/12) = -0.125%. Theforward premium/discount, expressed as a percentage, is calculated as:((F-S)/S)•100 = ((1.089 – 1.072)/1.072)•100=1.5858%b. Transaction costs are shown in the figure above by the dashed lines that interest thehorizontal axis at values of -1.00 and 1.00.c. The positive value indicates that the euro is selling at a premium. In addition, the interestrate differential favors the euro-denominated instrument. Hence, a saver shift funds to euro-denominated instruments.2. Using the provided information:(1.75/12) – (3.25/12) < [(1.089 - 1.072/1.072)]•100-0.125% < 1.5858%.3.Graph 1, the spot market for the euro.R–R*450(F-S)/S-0.1251.58581.00-1.0$/€$/€In graph 1,the demand for the euro rises as international savers shift funds into euro-denominated instruments. In graph 2, the supply of euros increases in the forward market. (Consider a U.S. saver that moves funds into a euro-denominated instrument. They would desire to sell the euro forward so they may convert euro-denominated proceeds at the time of maturity into their dollar equivalent.) Graph 3 illustrates a decrease in loanable funds in the United States as savers shift funds to euro-denominated instruments. Graph 4 illustrates the increase in the supply of loanable funds that occurs when savers shift funds to the euro-denominated instrument.4. Because (1.03125) > (1.04250)(1.4575/1.5245) = 0.9967, an arbitrage opportunity exists inthis example if one were to borrow the pound and lend the euro. Suppose you were to borrow one pound, the steps are then:a. Borrow £1, convert to €1.5245 on the spot market.b. Lend euros, yielding €1.5245•(1.03125) = €1.5721.c. See euros forward, yielding €1.5721/1.4575 = £1.0787.d. Repay the pound loan at £1•(1.04250) = £ 1.04250.e. The profit is £0.0362, or 3.62 percent.5. Because interest rates are quoted as annualized rates, we need to divide each interest rateby 4 (12/3). The uncovered interest parity equation is:R -R* = (S e+1 - S) /Sa. Rewriting the equation for the expected future expected exchange rate yields:S e+1 = [(R- R*) + 1]Sb. Using the values given yields the expected future spot rateS e+1 = [(0.0124/4 - 0.0366/4) + 1]• 1.5245 = 1.5153.6. Given this information, we can calculate the forward premium/discount with the UIP condition:(F - S)/S = R - R*The interest differential is 1.75% - 3.25% = 1.5%. This is the expected forward premium on the euro. Hence, (F – 1.08)/1.08 = 0.015 implies that F = 1.0962.7. We can adjust for the shorter maturity by dividing the interest rates by 2 (12/6). Now theinterest differential is 0.75%, still a forward premium on the euro. The forward rate now is (F – 1.08)/1.08 = 0.0075 implies that F = 1.0881.8. The U.S. real rate is 1.24% – 2.1% = -0.86% and the Canadian real rate is 2.15% – 2.6% =-0.45%. Ignoring transaction costs, because the real interest rates are not equal, real interest parity does not hold.9. Uncovered interest parity is R -R* = (S e+1 - S) /S + ρ.a. Using the same process as in question 5 above, the expected future spot rate is:S e+1 = [(R- R*) + 1]S,S e+1 = [(0.075 - 0.035) + 1]•30.35 = 31.564.b. Using the same process as in question 5 above, the expected future spot rate is:S e+1 = [(R- R*) + 1 - ρ]S,S e+1 = [(0.075 - 0.035) + 1 – 0.02]•30.35 = 30.957.10. Because the forward rate, 30.01, is less than the expected future spot rate, 30.957, you shouldsell the koruna forward. For example, $1 would purcase k30.957, which you could sell forward yielding k30.957/30.01 = $1.0316.11. International financial instruments:a. Global Bond: long term instruments issued in the domestic currency.b. Eurobond: term is longer than one year and is issued in a foreign currency.c. Eurocurrency: keyword is that it is a deposit.d. Global equity: keyword is that it is a share.Chapter 7The International Financial Architecture and Emerging Economies1. The difference between direct and indirect financing has to do with whether the borrower andlender seek each other out or whether an intermediary matches borrowers and lenders. Direct financing requires no intermediary to match savers and borrowers. An economy will benefit from having both direct and indirect financing because both are appropriate ways to save and invest under different circumstances. As discussed in the text, financial intermediaries absorb a fraction of each saver's dollar that is borrowed. Thus, the intermediary takes some of the funds that otherwise would have gone to a borrower. However, the financialintermediary provides an important service by reducing information asymmetries, allowing savers to pool risk, and matching risk and return. Therefore, when an individual cannot research these issues on his/her own, the intermediary is necessary to help the financial markets operate. However, a strong bond market, in which borrowers and savers can directly interact, allows for informed parties to save the funds that otherwise would go to an intermediary. This, in turn, uses the savings more efficiently.2. Portfolio flows are relatively short term in nature (have a shorter term to maturity), involvelower borrowing costs, and can generate near-term income. They also do not require a firm to give up control to a foreign investor. Consequently, they may help to improve capital allocation within an economy and help the economy's financial sector develop. These are all potential benefits of portfolio investments. By the same token, however, they are also relatively easy to reverse in direction, which is a potential disadvantage of portfolio investment.On the other hand, foreign direct investment (FDI) involve some degree of ownership and control of a foreign firm, are typically long term in nature, and help provide a stabilizing influence on a nation's economy. As such, FDI is typically more difficult to arrange.It is not advantageous to rely on either type of investment exclusively, in so far as each type accomplishes different goals for an economy. Both near-and long-term capital are important for an economy's growth.3. As either portfolio investment of FDI increase, the demand for the local currency rises (e.g.,there is a shift from D0to D1), which puts upward pressure on the value of the currency, from S0 to S1. If the central bank expects to hold the value of the currency constant at S0, it will have to increase the quantity of the domestic currency supplied (e.g., accommodate theexcess quantity demanded at the initial spot rate S0) to maintain the peg. The opposite would hold for capital outflows.4. Suppose that a multinational bank (MNB) headquartered in a developed economy enters adeveloping economy. The MNB has gained considerable expertise in working as a financialQ s Q dintermediary, and likely has achieved economies of scale in doing so. By entering a foreign market, it helps to allocate the savings more efficiently through its intermediation services;which in turn will lead to additional economic development. Specifically, it should help to make sure that the best investment projects are funded. Moreover, the competition it introduces into the capital market helps to improve the quality of the indigenous financial intermediaries. This, in turn, should also add to financial stability.5. Savers and borrowers can also benefit from the regulation of financial intermediaries whenportfolio capital flows dominate a country's capital inflows. It can be argued that regulation to limit short-term inflows can stabilize the economy and that these regulations can be gradually lifted as the economy becomes more stable (financial markets develop) and resilient to external shocks. These regulations do impose costs in that they require resources to enforce, and may inhibit otherwise helpful capital inflows which may aid economic development. However, these costs must be considered against the potential losses that may be incurred if the absence of capital controls would lead to more volatile and capital markets (which may deter the inflow of foreign capital).6. Policymakers should undertake actions that attract both portfolio capital flows and FDI flows.Actions that improve transparency in both the private a public sector reduces information asymmetries and their associate problems thereby making portfolio flows more stable, in other words, reducing the risk of massive capital outflows. Policymakers may also undertake actions that promote education, improve the tax structure and tax collection, and improve the countries infrastructure. These actions may, in turn, attract FDI.7. In the following two examples it is assumed that the policymaker maintains a pegged-exchangerate regime and does not opt for a floating-rate regime. Hence, the policymaker may either intervene and maintain the peg or change the value of the peg. In both cases there is pressure for the domestic currency to appreciate vis a vis the foreign currency.a. If the exchange rate pressure is only temporary in nature, then the policymaker mayintervene by accommodating the excess quantity demanded, as explained in question 3 above.b. Because the exchange rate pressure is longer-term in nature, the policymaker would bewell advised to revalue the domestic currency.8. The World Bank was initially established to help countries rebuild after WWII and in the 1960sexpanded to also make long term loans to developing nations in order to help reduce poverty and improve living standards. Recently, some of the World Bank's activities have begun to overlap the IMF's activities to finance long-term structural adjustments and provide refinancing for some heavily indebted countries. Critics may argue that the tasks that are duplicated by the IMF and the World Bank create conflicting goals for the World Bank. Thus, the two organizations may each benefit by focusing on different aims. For instance, the IMF may return to financing shorter-term objectives and leave the World Bank to worry about longer-term projects.Another conflicting line of reasoning involves donors' expectation that the World Bank maintain a revenue stream form its projects. This can be argues as unrealistic, however, in that the poorest countries are less likely to yield a payoff for the needed projects; and these are precisely the countries that the World Bank is designed and intended to help. On the other hand, the less risky projects, which could provide a positive revenue stream are likely to attract private capital.9. The first cause of a crisis could be an imbalance in the economy. In other words, anincongruity in economic fundamentals could cause a crisis. Possible indicators include theoretical divergences between various economic variables such as the exchange rate and interest rates, income, and money supply. In terms of evaluation, if fundamental economic variables seem to be out of line, there may be an impending crisis.A second cause is that of self-fulfilling expectations and contagion effects. In this case,mere expectations of a potential inability to maintain a specified exchange rate or a slight incongruity between economic conditions and the market exchange rate may cause a cascade of speculation that leads to a crisis. Since this is based on perception, it is difficult to find an indicator. One possible indicator would be trading volumes of currency for countries that may be at risk from the viewpoint of economic fundamentals. If trading volumes grew quickly, a crisis may be on the horizon.Finally, the structural moral hazard problem may indicate a crisis. In this case, a credit rating bureau, such as Moody's may provide the data needed to indicate a potential crisis.The quality of the credit rating would be relatively easily interpreted to indicate a potential crisis.10. It can be argued that such below market interest rate loans are critical for a developingnation's economy in order for the economy to grow unburdened by high interest payments when it is trying to funnel profits back into the economy and sustain growth. Conversely, providing these non-market rate loans can also be argued to distort the market for loanable funds and attract inefficient investment. Students' perspectives will vary as to which argument is the best.Chapter 8Traditional Approaches to Exchange-Rate and Balance-Of-Payments Determination1. Using the formula provided in the question, the elasticity of foreign exchange demand is,in absolute value ()(),5236.01818.00952.020.100.12/100.120.12002202/1220200==⎥⎦⎤⎢⎣⎡+-⎥⎦⎤⎢⎣⎡+- and the elasticity of foreign exchange supply is ()().5782.01818.01053.020.100.12/100.120.12001802/1180200==⎥⎦⎤⎢⎣⎡+-⎥⎦⎤⎢⎣⎡+- 2.A 1 percent depreciation of the Canadian dollar results in a 0.52 percent decline in imports demanded and a rise of 0.58 percent in exports supplied. 3. In absolute value, the smallest elasticity measure (most inelastic) is Germany ’s elasticityof import demand from the U.K. In absolute value, the largest elasticity measure (most elastic) is the United States ’ elasticity of demand for imports from Germany.4. Table 8-1 provides measures of the price elasticity of import demand. If the U.S. dollardepreciates relative to the Japanese yen, U.S. exports become relatively less expensive to Japanese consumers and Japanese exports become relatively more expensive to U.S. consumers.a. The U.S. quantity of imports demanded from Japan falls by 1.13 percent.b. Japan ’s quantity of imports demanded from the U.S. rises by 0.72 percent.c. Because U.S. exports rise and imports decline, the trade balance should improve.5. The trade balance may not improve in the short-run because of pass-through and J-curve effects.Over a longer time horizon, import demand is relative more elastic and the trade balance should improve. 6. If the Canadian dollar depreciates relative to the U.S. dollar, then the quantity of hockeypucks demanded declines. Hence, Slovakian manufacturers would have to absorb all of the exchange rate change in their profit margins and the price of hockey pucks would have to decline by 5 percent for the quantity demanded to remain unchanged.7.Using the values given in the problem:a. real income, y, equals c + i + g + x = $23,500, absorption, a, equals c + i + g + im = $24,000.b. Net exports, x - im, equals -$500. Therefore, there is a trade deficit of $500. 8.Net exports now equal $550 - $950 = $400. The devaluation did improve the external balance. 9. The advertising campaign would induce consumers to increase expenditures on domestic outputand decrease expenditures on foreign output. Domestic absorption will rise and, ifexpenditures on imports decrease, the trade balance improves.10. As the U.S. economy expands, we would expect real income and real absorption to increase.On the one hand, if real income increases more than real absorption, net exports will rise. This would lead to an appreciation of the U.S. dollar. If, on the other hand, real absorption rises faster than real income, net exports fall. This would lead to a depreciation of the U.S. dollar.Chapter 9Monetary and Portfolio Approaches to Exchange-Rate and Balance-of-Payments Determination1. Using the formula provided on page 222, m(DC + FER) = kSP*y.a. The money stock is 2($1,000 + $80) = $2,160 million.b. The level of real income is: [2($1,000 + $80)]/[(0.20)(1.2)(2)] = $4,500 million.2 An open market purchase of securities in the amount of $10 million:a. A fixed exchange rate regime requires a decrease in foreign reserves in an equal amount.Hence, this action results in a balance of payments deficit in the amount of $10 million.b. A flexible exchange rate regime results in a new spot exchange rate of 2.019, which isa depreciation of the domestic currency. This problem is solved by using the value forreal income derived in 5 b above: [(2($1,010 + 80)]/[(0.20)(1.2)($4,500)] = 2.019. 3. The wealth identity is given on page 229 as W≡ M + B+ SB*. An open market sale of securitieswould reduce bank reserves, increasing the domestic interest rate. Individuals would shift from foreign bonds to domestic bonds, leading to an appreciation of the domestic currency.Under a fixed exchange rate, the open market sale would result in an improvement of the domestic nation’s balance of payments. (The elasticity diagrams in Chapter 8 are useful in answering this question.)4. This answer is an illustration of problem 3 under flexible exchange rates. The open marketsale would cause an increase in the demand for the domestic currency and the domestic currency would appreciate as a result.5. The wealth identity is given on page 315 as W≡ M + B SB*. From the foreign nation it isW ≡ M* + B* + (1/S)B. An open market sale of securities by the foreign central bank would reduce foreign bank reserves, increasing the foreign interest rate relative to the domestic interest rate. Individuals would shift from domestic bonds to foreign bonds, leading to an depreciation of the domestic currency.Chapter11Economic Policy with Fixed Exchange Rates(Chose the right answers from the following 10 answers by yourself . SuGuangjin）1. Achieving a balance-of-payments surplus requires that the sum of the capital account balanceand current account balance is positive, which requires a higher interest rate to attract greater capital inflows and lower real income to dampen import spending. Consequently, the BP schedule would lie above and to the left of the position it otherwise would have occupied if the external-balance objective were to ensure only a balance-of- payments equilibrium.Undoubtedly, if the central bank felt pressure to sterilize under the latter objective, the pressure to do so would be greater if it seeks to attain a balance-of-payments surplus, which would require the central bank to steadily acquire foreign-exchange reserves. In the absence of sterilization, the nation's money stock would steadily decline.2. In this situation, variations in the domestic interest rate relative to interest rates inother nations would have not effect on the nation's capital account balance and its balance of payments. Its BP schedule, therefore, would be vertical. An expansionary fiscal policy, given a fixed exchange rate (as assumed in this chapter), would cause the IS schedule to shift rightward, initially inducing a rise in equilibrium real income. This, however, would cause import spending to increase, and the nation would experience a balance-of-payments deficit, which would place downward pressure on the value of its currency. To prevent a change in the exchange rate, the central bank would have to sell foreign exchange reserves. If this。

第一章课后习题答案一、关键词1.货币（money；currency）从商品中分离出来固定地充当一般等价物的商品。

现代货币：是指以某一权力机构为依托，在一定时期一定地域内推行的一种可以执行交换媒介、价值尺度、延期支付标准及作为完全流动的财富的储藏手段等功能的凭证。

一般可以分为纸凭证及电子凭证，就是人们常说的纸币及电子货币。

2.信用货币（credit money）由国家法律规定的，强制流通不以任何贵金属为基础的独立发挥货币职能的货币。

目前世界各国发行的货币，基本都属于信用货币。

3.货币职能（monetary functions）货币本质所决定的内在功能。

货币的职能主要包括了价值尺度、流通手段、贮藏手段、支付手段和国际货币这五大职能。

4.货币层次（monetary levels）货币层次的划分：M1=现金+活期存款；M2=M1+储蓄存款+定期存款；M3=M2+其他所有存款；M4=M3+短期流动性金融资产。

这样划分的依据是货币的流动性。

5.流动性（liquidity）资产能够以一个合理的价格顺利变现的能力，它是一种所投资的时间尺度（卖出它所需多长时间）和价格尺度（与公平市场价格相比的折扣）之间的关系。

6.货币制度（monetary system）国家对货币的有关要素、货币流通的组织与管理等加以规定所形成的制度，完善的货币制度能够保证货币和货币流通的稳定，保障货币正常发挥各项职能。

二、重要概念1.价值形式商品的价值表现形式。

商品的价值不能自我表现，必须在两种商品的交换中通过另一种商品表现出来。

2.一般等价物从商品中分离出来的充当其它一切商品的统一价值表现材料的商品，它的出现，是商品生产和交换发展的必然结果。

3.银行券由银行（尤指中央银行）发行的一种票据，俗称钞票。

早期银行券由商业银行分散发行，代替金属货币流通，通过与金属货币的兑现维持其价值。

中央银行产生以后，银行券由中央银行垄断发行，金属货币制度崩溃后，银行券成为不兑现的纸制信用货币。

国际金融(第五版)课后习题以及答案一、选择题1. 以下哪个因素不属于决定汇率变动的长期因素？（）A. 国际收支状况B. 贸易政策C. 通货膨胀率D. 货币政策答案：B2. 以下哪个国家的货币被认为是避险货币？（）A. 美元B. 欧元C. 英镑D. 日元答案：A3. 以下哪个组织负责监督国际金融秩序和协调国际金融政策？（）A. 国际货币基金组织B. 世界银行C. 国际清算银行D. 二十国集团答案：A二、简答题1. 简述国际收支平衡表的主要内容。

答案：国际收支平衡表是反映一个国家与其他国家在一定时期内经济交易情况的表格。

其主要内容包括以下几部分：（1）经常账户：包括货物、服务、收入和转移支付四个子账户；（2）资本和金融账户：包括直接投资、证券投资、其他投资和储备资产四个子账户；（3）误差与遗漏：用于调整统计误差。

2. 简述汇率制度的主要类型。

答案：汇率制度是指一个国家或地区货币当局对本币与外币汇率变动进行管理和调整的制度。

主要类型包括以下几种：（1）固定汇率制度：货币当局将本币与某一外币或一篮子货币的汇率固定在一个水平上；（2）浮动汇率制度：货币当局不干预外汇市场，本币汇率由市场供求关系决定；（3）有管理的浮动汇率制度：货币当局在必要时对外汇市场进行干预，以调节汇率水平；（4）双重汇率制度：对不同的交易实行不同的汇率。

三、论述题1. 论述国际资本流动的原因及影响。

答案：国际资本流动的原因主要有以下几点：（1）投资收益差异：投资者追求更高的投资回报，从而将资本从低收益国家转移到高收益国家；（2）汇率变动：汇率变动会影响国际资本的流动，如本币贬值会吸引外国投资者购买本币资产；（3）金融监管政策：不同国家的金融监管政策差异，导致投资者寻求监管较为宽松的市场进行投资；（4）政治、经济稳定性：政治、经济稳定性较高的国家更容易吸引国际资本。

国际资本流动的影响如下：（1）促进资源在全球范围内优化配置；（2）提高全球金融市场一体化程度；（3）加剧国际金融市场波动；（4）可能引发货币危机和债务危机。

Answers to End of Chapter QuestionsChapter 1Keeping Up With a Changing World-Trade Flows, Capital Flows, and the Balance Of Payments1. The balance on merchandise trade is the difference between exports of goods, 719 and theimports of goods, 1,145, for a deficit of 426. The balance on goods, services and income is 719 + 279 +284 – 1145 - 210 – 269, for a deficit of 342. Adding unilateral transfers to this gives a current account deficit of 391, [-342 + (-49) = -391]. (Note that income receipts are credits and income payments are debits.)2. Because the current account balance is a deficit of 391, then without a statisticaldiscrepancy, the capital account is a surplus of 391. In this problem, however, the statistical discrepancy is recorded as a positive amount (credit) of 11. Hence, the sum of the debits in the balance of payments must exceed the credits by 11. So, the deficit of the current account must be greater than the surplus on the capital account by 11. The capital account, therefore, is a surplus of 391 – 11 = 380.3. A balance-of-payments equilibrium is when the debits and credits in the current account andthe private capital account sum to zero. In the problem above we do not know the private capital account balance. We cannot say, therefore, whether this country is experiencinga balance-of-payments surplus or deficit or if it is in equilibrium.4 The current account is a deficit of $541,830 and the private capital account balance is asurplus of $369,068. The U.S., therefore, has a balance of payments deficit.5 Positive aspects of being a net debtor include the possibility of financing domesticinvestment that is not possible through domestic savings; thereby allowing for domestic capital stock growth which may allow job, productivity, and income growth. Negative aspects include the fact that foreign savings may be used to finance domestic consumption rather than domestic savings; which will compromise the growth suggested above.Positive aspects of being a net creditor include the ownership of foreign assets which can represent an income flows to the crediting country. Further, the net creditor position also implies a net exporting position. A negative aspect of being a net creditor includes the fact that foreign investment may substitute for domestic investment.6 A nation may desire to receive both portfolio and direct investment due to the type ofinvestment each represents. Portfolio investment is a financial investment while direct investment is dominated by the purchase of actual, real, productive assets. To the extent that a country can benefit by each type of investment, it will desire both types of investment.Further, portfolio investment tends to be short-run in nature, while FDI tends to be long-run in nature. This is also addressed in much greater detail in Chapter 7.7. Domestic Savings - Domestic Investment = Current Account BalanceDomestic Savings - Domestic Investment = Net Capital FlowsTherefore, Current Account Balance = Net Capital Flows8 Using the equations above, private savings of 5 percent of income, government savings of-1 percent, and investment expenditures of 10 percent would results in a current account deficit of 6 percent of income and a capital account surplus (net capital inflows) of 6 percent of income. This could be corrected with a reduction in the government deficit (to a surplus) and/or an increase in private savings.Chapter 2The Market for Foreign Exchange1. Because it costs fewer dollars to purchase a euro after the exchange rate change, the eurodepreciated relative to the dollar. The rate of depreciation (in absolute value) was [(1.2168 – 1.2201)/1.2201]100 = 0.27 percent.2. Note that the rates provided are the foreign currency prices of the U.S. dollar. Every valuehas been rounded to two decimal places which may cause some differences in answers.3 The cross rate is 1.702/1.234 = 1.379 (€/£), which is smaller in value than that observedin the London market. The arbitrageur would purchase £587,544 ($1,000,000/1.702) with the $1 million in the New York market. Next they would use the £587,544 in London to purchase €837,250 (£587,544*1.425). Finally, they would sell the €837,250 in the New York market for $1,033,167 (€837,250*1.234). The profit is #33,167.4. Total trade is (163,681 + 160,829 + 261,180 + 210, 590) = 796,280. Trade with the Euro areais (163,681 + 261,180) = 424,861. Trade with Canada is (160,829 + 210,590) = 371,419. The weight assigned to the euro is 424,861/796,280 = 0.53 and the weight assigned to the Canadian dollar is 0.47. (Recall the weights must sum to unity.)Because the base year is 2003, the 2003 EER is 100. The value of the 2004 EER is:[(0.82/0.88)•0.53 + (1.56/1.59)•0.47]•100 = (0.4939 + 0.4611)•100 = 95.4964, or 95.5. This represents a 4.5 percent depreciation of the U.S. dollar.5 The real effective exchange rate (REER) for 2003 is still 100. The real rates of exchangeare, for 2003, 0.88•(116.2/111.3) = .9187, 1.59•(116.2/111.7) = 1.6541, and for 2004,0.82•(119.0/114.4) = 0.8530, 1.56•(119.0/115.6) = 1.6059. The value of the 2004 REER is:[(0.8530/0.9187)•0.53 + (1.6059/1.6541)•0.47]•100 = (0.4921 + 0.4563)•100 = 94.84, or 94.8.This represents a 5.2 percent depreciation of the U.S. dollar in real terms6. This is a nominal appreciation of the euro relative to the U.S. dollar. The percent changeis [(1.19 –1.05)/1.05]•100 = 13.3 percent.7. The January 200 real exchange rate is 1.05•(107.5/112.7) = 1.0016. The May 2004 real rateis 1.19•(116.4/122.2) = 1.1335.8 In real terms the euro appreciated relative to the U.S. dollar. The rate of appreciationis [(1.1335 – 1.0016)/1.0016]*100 = 13.17 percent.9 Absolute PPP suggests the May 2004 exchange rate should be 122.2/116.4 = 1.0498. The actualexchange rate is 1.19. Hence, the euro is overvalued relative to the U.S. dollar by (1.19 – 1.0498)/1.0498]•100 = 13.35 percent.10Relative PPP can be used to calculate a predicted value of the exchange rate as: S PPP = 1.05•[(122.2/112.7)/(116.4/107.5)] = 1.0014.11. The actual exchange rate is 1.19. Hence, the euro is overvalued relative to the U.S. dollarby (1.19 –1.0014)/1.0014]•100 = 18.83 percent.Chapter 3Exchange Rate Systems, Past to Present1. Ranking the various exchange rate arrangements by flexibility is not so clear cut.Nonetheless the arrangements described in this chapter are (from fixed to flexible): dollarization, currency board, commodity (standard) peg, dollar (standard) peg,currency basket peg, crawling peg, managed float, flexible.2. The two primary functions of the International Monetary Fund are: surveillance of membernations' macroeconomic policies, and to provide liquidity to member nations experiencing payments imbalances.3. The value of the Canadian dollar relative to gold is CAN$69 (1.38 • $50) and the valueof the British pound relative to gold is £33.33 ($50/1.50).4. The exchange rate between the Canadian dollar and the British pound is C$/£2.07 (1.38• 1.50).5. The currency value of the peso can be expressed as $0.50 + €.50=P1. The exchange ratebetween the dollar and the euro can be used to convert the euro amount to its dollar equivalent of $0.55. Hence, $1.05=P1, or and exchange value of 0.952 P/$. Using the exchange rate between the dollar and the euro again, the exchange rate between the peso and the euro is 0.1.048 P/€ (0.952 P/$ • 1.10 $/€).6. Because $1.05 is the currency content of the basket, as shown above, and $0.50 of thatcontent is attributable to the dollar, the weight assigned to the dollar is 0.50/1.05 = 0.476, or 47.6 percent. Because the weights must sum to unity, the weight assigned to the euro is 52.4 percent.7. The main difference between the two systems was that, in the Smithsonian system, the dollarwas not pegged to the value of gold. One reason that the system was short was because there was little confidence that U.S. economic policy would be conducted in a manner conducive to a system of pegged exchange rates.8. The principle responsibilities of a currency board are to issue domestic currency notesand peg the value of the domestic currency. A currency board is not allowed to purchase domestic debt, act as a lender of last resort, or set reserve requirements.9. The Lourve accord established unofficial limits on currency value movements. In a sense,it was peg with bands for each of the main currencies (dollar, yen and mark).10. Differences in the fundamental determinants of currency values between the peggingcountry and the other country should be considered. To this point of the text, the rate of inflation is a good example. Relative PPP can be used to determine the rate of crawl.11. Under a currency board system, a nation still maintains its domestic currency. Hence,policymakers can change exchange rate policies and monetary policies if they so desire.When a nation dollarizes and disposes of its domestic currency it no longer has this option.Chapter 4The Forward Currency Market and International Financial Arbitrage1. Given that the exchange rate is expressed as dollars to euros, we treat the dollar as the domestic currency. Note also that interest rates are quoted on an annual basis even though thematurity period is only one month. In this problem we divide the interest rates by 12 to put them on a one-month basis.a. The interest rate differential, therefore, is (1.75%/12 - 3.25%/12) = -0.125%. Theforward premium/discount, expressed as a percentage, is calculated as:((F-S)/S)•100 = ((1.089 –1.072)/1.072)•100=1.5858%b. Transaction costs are shown in the figure above by the dashed lines that interest thehorizontal axis at values of -1.00 and 1.00.c. The positive value indicates that the euro is selling at a premium. In addition, the interestrate differential favors the euro-denominated instrument. Hence, a saver shift funds to euro-denominated instruments.2. Using the provided information:(1.75/12) – (3.25/12) < [(1.089 - 1.072/1.072)]•100-0.125% < 1.5858%.3.Graph 1, the spot market for the euro.R –R*450(F-S)/S-0.1251.58581.00-1.0$/€$/€In graph 1,the demand for the euro rises as international savers shift funds into euro-denominated instruments. In graph 2, the supply of euros increases in the forward market. (Consider a U.S. saver that moves funds into a euro-denominated instrument. They would desire to sell the euro forward so they may convert euro-denominated proceeds at the time of maturity into their dollar equivalent.) Graph 3 illustrates a decrease in loanable funds in the United States as savers shift funds to euro-denominated instruments. Graph 4 illustrates the increase in the supply of loanable funds that occurs when savers shift funds to the euro-denominated instrument.4. Because (1.03125) > (1.04250)(1.4575/1.5245) = 0.9967, an arbitrage opportunity exists inthis example if one were to borrow the pound and lend the euro. Suppose you were to borrow one pound, the steps are then:a. Borrow £1, convert to €1.5245 on the spot market.b. Lend euros, yielding €1.5245•(1.03125) = €1.5721.c. See euros forward, yielding €1.5721/1.4575 = £1.0787.d. Repay the pound loan at £1•(1.04250) = £1.04250.e. The profit is £0.0362, or 3.62 percent.5. Because interest rates are quoted as annualized rates, we need to divide each interest rateby 4 (12/3). The uncovered interest parity equation is:R -R* = (S e+1 - S) /Sa. Rewriting the equation for the expected future expected exchange rate yields:S e+1 = [(R- R*) + 1]Sb. Using the values given yields the expected future spot rateS e+1 = [(0.0124/4 - 0.0366/4) + 1]•1.5245 = 1.5153.6. Given this information, we can calculate the forward premium/discount with the UIP condition:(F - S)/S = R - R*The interest differential is 1.75% - 3.25% = 1.5%. This is the expected forward premium on the euro. Hence, (F – 1.08)/1.08 = 0.015 implies that F = 1.0962.7. We can adjust for the shorter maturity by dividing the interest rates by 2 (12/6). Now theinterest differential is 0.75%, still a forward premium on the euro. The forward rate now is (F – 1.08)/1.08 = 0.0075 implies that F = 1.0881.8. The U.S. real rate is 1.24% – 2.1% = -0.86% and the Canadian real rate is 2.15% – 2.6% =-0.45%. Ignoring transaction costs, because the real interest rates are not equal, real interest parity does not hold.9. Uncovered interest parity is R -R* = (S e+1 - S) /S + ρ.a. Using the same process as in question 5 above, the expected future spot rate is:S e+1 = [(R- R*) + 1]S,S e+1 = [(0.075 - 0.035) + 1]•30.35 = 31.564.b. Using the same process as in question 5 above, the expected future spot rate is:S e+1 = [(R- R*) + 1 - ρ]S,S e+1 = [(0.075 - 0.035) + 1 –0.02]•30.35 = 30.957.10. Because the forward rate, 30.01, is less than the expected future spot rate, 30.957, you shouldsell the koruna forward. For example, $1 would purcase k30.957, which you could sell forward yielding k30.957/30.01 = $1.0316.11. International financial instruments:a. Global Bond: long term instruments issued in the domestic currency.b. Eurobond: term is longer than one year and is issued in a foreign currency.c. Eurocurrency: keyword is that it is a deposit.d. Global equity: keyword is that it is a share.Chapter 7The International Financial Architecture and Emerging Economies1. The difference between direct and indirect financing has to do with whether the borrower andlender seek each other out or whether an intermediary matches borrowers and lenders. Direct financing requires no intermediary to match savers and borrowers. An economy will benefit from having both direct and indirect financing because both are appropriate ways to save and invest under different circumstances. As discussed in the text, financial intermediaries absorb a fraction of each saver's dollar that is borrowed. Thus, the intermediary takes some of the funds that otherwise would have gone to a borrower. However, the financialintermediary provides an important service by reducing information asymmetries, allowing savers to pool risk, and matching risk and return. Therefore, when an individual cannot research these issues on his/her own, the intermediary is necessary to help the financial markets operate. However, a strong bond market, in which borrowers and savers can directly interact, allows for informed parties to save the funds that otherwise would go to an intermediary. This, in turn, uses the savings more efficiently.2. Portfolio flows are relatively short term in nature (have a shorter term to maturity), involvelower borrowing costs, and can generate near-term income. They also do not require a firm to give up control to a foreign investor. Consequently, they may help to improve capital allocation within an economy and help the economy's financial sector develop. These are all potential benefits of portfolio investments. By the same token, however, they are also relatively easy to reverse in direction, which is a potential disadvantage of portfolio investment.On the other hand, foreign direct investment (FDI) involve some degree of ownership and control of a foreign firm, are typically long term in nature, and help provide a stabilizing influence on a nation's economy. As such, FDI is typically more difficult to arrange.It is not advantageous to rely on either type of investment exclusively, in so far as each type accomplishes different goals for an economy. Both near-and long-term capital are important for an economy's growth.3. As either portfolio investment of FDI increase, the demand for the local currency rises (e.g.,there is a shift from D0to D1), which puts upward pressure on the value of the currency, from S0 to S1. If the central bank expects to hold the value of the currency constant at S0, it will have to increase the quantity of the domestic currency supplied (e.g., accommodate the excess quantity demanded at the initial spot rate S0) to maintain the peg. The opposite would hold for capital outflows.4. Suppose that a multinational bank (MNB) headquartered in a developed economy enters adeveloping economy. The MNB has gained considerable expertise in working as a financialQ s Q dintermediary, and likely has achieved economies of scale in doing so. By entering a foreign market, it helps to allocate the savings more efficiently through its intermediation services;which in turn will lead to additional economic development. Specifically, it should help to make sure that the best investment projects are funded. Moreover, the competition it introduces into the capital market helps to improve the quality of the indigenous financial intermediaries. This, in turn, should also add to financial stability.5. Savers and borrowers can also benefit from the regulation of financial intermediaries whenportfolio capital flows dominate a country's capital inflows. It can be argued that regulation to limit short-term inflows can stabilize the economy and that these regulations can be gradually lifted as the economy becomes more stable (financial markets develop) and resilient to external shocks. These regulations do impose costs in that they require resources to enforce, and may inhibit otherwise helpful capital inflows which may aid economic development. However, these costs must be considered against the potential losses that may be incurred if the absence of capital controls would lead to more volatile and capital markets (which may deter the inflow of foreign capital).6. Policymakers should undertake actions that attract both portfolio capital flows and FDI flows.Actions that improve transparency in both the private a public sector reduces information asymmetries and their associate problems thereby making portfolio flows more stable, in other words, reducing the risk of massive capital outflows. Policymakers may also undertake actions that promote education, improve the tax structure and tax collection, and improve the countries infrastructure. These actions may, in turn, attract FDI.7. In the following two examples it is assumed that the policymaker maintains a pegged-exchangerate regime and does not opt for a floating-rate regime. Hence, the policymaker may either intervene and maintain the peg or change the value of the peg. In both cases there is pressure for the domestic currency to appreciate vis a vis the foreign currency.a. If the exchange rate pressure is only temporary in nature, then the policymaker mayintervene by accommodating the excess quantity demanded, as explained in question 3 above.b. Because the exchange rate pressure is longer-term in nature, the policymaker would bewell advised to revalue the domestic currency.8. The World Bank was initially established to help countries rebuild after WWII and in the 1960sexpanded to also make long term loans to developing nations in order to help reduce poverty and improve living standards. Recently, some of the World Bank's activities have begun to overlap the IMF's activities to finance long-term structural adjustments and provide refinancing for some heavily indebted countries. Critics may argue that the tasks that are duplicated by the IMF and the World Bank create conflicting goals for the World Bank. Thus, the two organizations may each benefit by focusing on different aims. For instance, the IMF may return to financing shorter-term objectives and leave the World Bank to worry about longer-term projects.Another conflicting line of reasoning involves donors' expectation that the World Bank maintain a revenue stream form its projects. This can be argues as unrealistic, however, in that the poorest countries are less likely to yield a payoff for the needed projects; and these are precisely the countries that the World Bank is designed and intended to help. On the other hand, the less risky projects, which could provide a positive revenue stream are likely to attract private capital.9. The first cause of a crisis could be an imbalance in the economy. In other words, anincongruity in economic fundamentals could cause a crisis. Possible indicators include theoretical divergences between various economic variables such as the exchange rate and interest rates, income, and money supply. In terms of evaluation, if fundamental economic variables seem to be out of line, there may be an impending crisis.A second cause is that of self-fulfilling expectations and contagion effects. In this case,mere expectations of a potential inability to maintain a specified exchange rate or a slight incongruity between economic conditions and the market exchange rate may cause a cascade of speculation that leads to a crisis. Since this is based on perception, it is difficult to find an indicator. One possible indicator would be trading volumes of currency for countries that may be at risk from the viewpoint of economic fundamentals. If trading volumes grew quickly, a crisis may be on the horizon.Finally, the structural moral hazard problem may indicate a crisis. In this case, a credit rating bureau, such as Moody's may provide the data needed to indicate a potential crisis.The quality of the credit rating would be relatively easily interpreted to indicate a potential crisis.10. It can be argued that such below market interest rate loans are critical for a developingnation's economy in order for the economy to grow unburdened by high interest payments when it is trying to funnel profits back into the economy and sustain growth. Conversely, providing these non-market rate loans can also be argued to distort the market for loanable funds and attract inefficient investment. Students' perspectives will vary as to which argument is the best.Chapter 8Traditional Approaches to Exchange-Rate and Balance-Of-Payments Determination1. Using the formula provided in the question, the elasticity of foreign exchange demand is,in absolute value ()(),5236.01818.00952.020.100.12/100.120.12002202/1220200==⎥⎦⎤⎢⎣⎡+-⎥⎦⎤⎢⎣⎡+- and the elasticity of foreign exchange supply is ()().5782.01818.01053.020.100.12/100.120.12001802/1180200==⎥⎦⎤⎢⎣⎡+-⎥⎦⎤⎢⎣⎡+- 2.A 1 percent depreciation of the Canadian dollar results in a 0.52 percent decline in imports demanded and a rise of 0.58 percent in exports supplied. 3. In absolute value, the smallest elasticity measure (most inelastic) is Germany’s elasticityof import demand from the U.K. In absolute value, the largest elasticity measure (most elastic) is the United States’ elasticity of demand for imports from G ermany.4. Table 8-1 provides measures of the price elasticity of import demand. If the U.S. dollardepreciates relative to the Japanese yen, U.S. exports become relatively less expensive to Japanese consumers and Japanese exports become relatively more expensive to U.S. consumers.a. The U.S. quantity of imports demanded from Japan falls by 1.13 percent.b. Japan’s quantity of imports demanded from the U.S. rises by 0.72 percent.c. Because U.S. exports rise and imports decline, the trade balance should improve.5. The trade balance may not improve in the short-run because of pass-through and J-curve effects.Over a longer time horizon, import demand is relative more elastic and the trade balance should improve. 6. If the Canadian dollar depreciates relative to the U.S. dollar, then the quantity of hockeypucks demanded declines. Hence, Slovakian manufacturers would have to absorb all of the exchange rate change in their profit margins and the price of hockey pucks would have to decline by 5 percent for the quantity demanded to remain unchanged.7.Using the values given in the problem:a. real income, y, equals c + i + g + x = $23,500, absorption, a, equals c + i + g + im = $24,000.b. Net exports, x - im, equals -$500. Therefore, there is a trade deficit of $500. 8.Net exports now equal $550 - $950 = $400. The devaluation did improve the external balance. 9. The advertising campaign would induce consumers to increase expenditures on domestic outputand decrease expenditures on foreign output. Domestic absorption will rise and, ifexpenditures on imports decrease, the trade balance improves.10. As the U.S. economy expands, we would expect real income and real absorption to increase.On the one hand, if real income increases more than real absorption, net exports will rise. This would lead to an appreciation of the U.S. dollar. If, on the other hand, real absorption rises faster than real income, net exports fall. This would lead to a depreciation of the U.S. dollar.Chapter 9Monetary and Portfolio Approaches to Exchange-Rate and Balance-of-Payments Determination1. Using the formula provided on page 222, m(DC + FER) = kSP*y.a. The money stock is 2($1,000 + $80) = $2,160 million.b. The level of real income is: [2($1,000 + $80)]/[(0.20)(1.2)(2)] = $4,500 million.2 An open market purchase of securities in the amount of $10 million:a. A fixed exchange rate regime requires a decrease in foreign reserves in an equal amount.Hence, this action results in a balance of payments deficit in the amount of $10 million.b. A flexible exchange rate regime results in a new spot exchange rate of 2.019, which isa depreciation of the domestic currency. This problem is solved by using the value forreal income derived in 5 b above: [(2($1,010 + 80)]/[(0.20)(1.2)($4,500)] = 2.019. 3. The wealth identity is given on page 229 as W≡ M + B+ SB*. An open market sale of securitieswould reduce bank reserves, increasing the domestic interest rate. Individuals would shift from foreign bonds to domestic bonds, leading to an appreciation of the domestic currency.Under a fixed exchange rate, the open market sale would result in an improvement of the domestic nation’s balance of payments. (The elasticity diagrams in Chapter 8 are useful in answering this question.)4. This answer is an illustration of problem 3 under flexible exchange rates. The open marketsale would cause an increase in the demand for the domestic currency and the domestic currency would appreciate as a result.5. The wealth identity is giv en on page 315 as W≡ M + B SB*. From the foreign nation it isW ≡ M* + B* + (1/S)B. An open market sale of securities by the foreign central bank would reduce foreign bank reserves, increasing the foreign interest rate relative to the domestic interest rate. Individuals would shift from domestic bonds to foreign bonds, leading to an depreciation of the domestic currency.Chapter11Economic Policy with Fixed Exchange Rates(Chose the right answers from the following 10 answers by yourself . SuGuangjin）1. Achieving a balance-of-payments surplus requires that the sum of the capital account balanceand current account balance is positive, which requires a higher interest rate to attract greater capital inflows and lower real income to dampen import spending. Consequently, the BP schedule would lie above and to the left of the position it otherwise would have occupied if the external-balance objective were to ensure only a balance-of- payments equilibrium.Undoubtedly, if the central bank felt pressure to sterilize under the latter objective, the pressure to do so would be greater if it seeks to attain a balance-of-payments surplus, which would require the central bank to steadily acquire foreign-exchange reserves. In the absence of sterilization, the nation's money stock would steadily decline.2. In this situation, variations in the domestic interest rate relative to interest rates inother nations would have not effect on the nation's capital account balance and its balance of payments. Its BP schedule, therefore, would be vertical. An expansionary fiscal policy, given a fixed exchange rate (as assumed in this chapter), would cause the IS schedule to shift rightward, initially inducing a rise in equilibrium real income. This, however, would cause import spending to increase, and the nation would experience a balance-of-payments deficit, which would place downward pressure on the value of its currency. To prevent a change in the exchange rate, the central bank would have to sell foreign exchange reserves. If this。

货币金融学课后习题答案货币金融学是一门研究货币、信用、银行以及金融市场运作机制的学科。

它不仅涉及到理论的学习，还包括对实际问题的分析和解决。

以下是一些货币金融学课后习题的答案，这些答案仅供参考，具体问题可能需要结合具体情境进行分析。

1. 货币的定义及其功能货币是一种普遍接受的交换媒介、价值尺度、价值储藏和支付手段。

它具有以下功能：交易媒介、价值尺度、价值储藏和支付手段。

2. 货币供应量的组成货币供应量通常分为M0、M1和M2。

M0是流通中的现金；M1是M0加上活期存款；M2是M1加上定期存款和其他短期存款。

3. 中央银行的作用中央银行是国家的货币当局，其主要作用包括制定和执行货币政策、监管金融机构、维护金融稳定、管理国家外汇储备等。

4. 货币政策工具货币政策工具主要包括公开市场操作、存款准备金率和再贴现率。

这些工具可以用来调节货币供应量，影响利率和信贷条件。

5. 利率的决定因素利率的决定因素包括货币的供求关系、预期通货膨胀率、中央银行的货币政策以及风险溢价等。

6. 金融市场的分类金融市场可以分为货币市场和资本市场。

货币市场交易短期金融工具，如国库券和商业票据；资本市场交易长期金融工具，如股票和债券。

7. 银行的资产负债表银行的资产负债表包括资产、负债和所有者权益。

资产主要包括现金、贷款和证券；负债主要包括存款和借款；所有者权益是银行的净资产。

8. 信用风险和市场风险信用风险是指借款人可能无法偿还债务的风险；市场风险是指由于市场条件变化导致资产价值下降的风险。

9. 金融衍生品的作用金融衍生品如期货、期权、掉期等，可以用来对冲风险、投机或投资。

10. 金融危机的原因和影响金融危机可能由多种因素引起，如资产泡沫、信贷过度扩张、监管不力等。

金融危机的影响包括信贷紧缩、资产价格下跌、经济衰退等。

请注意，这些答案仅提供了一些基本的概念和理论框架，实际的货币金融学问题可能更为复杂，需要结合具体的情况和数据进行分析。

(完整版)国际金融习题含答案一、填空题1. 国际金融市场中，外汇市场的交易额远远超过其他金融市场，每天的交易额约为______万亿美元。

答案：6.62. 根据汇率变动的弹性，汇率制度可以分为固定汇率制度和______。

答案：浮动汇率制度3. 国际货币基金组织（IMF）成立于______年，总部设在美国首都华盛顿。

答案：19444. 国际金融市场上，美元指数（USDX）是衡量美元对一篮子货币汇率变动的指标，目前美元指数的权重货币包括美元、欧元、日元、英镑和______。

答案：瑞士法郎二、选择题1. 以下哪项不是国际收支平衡表的组成部分？A. 经常账户B. 资本账户C. 错误和遗漏账户D. 通货膨胀账户答案：D2. 以下哪种汇率制度属于固定汇率制度？A. 金本位制B. 物价挂钩制C. 管理浮动汇率制度D. 自由浮动汇率制度答案：A3. 以下哪个国家不属于世界四大经济体？A. 美国B. 中国C. 德国D. 日本答案：D4. 以下哪个国家是世界上最大的外汇储备国？A. 美国B. 中国C. 日本D. 德国答案：B三、判断题1. 国际金融市场的形成和发展，有利于全球资源的优化配置和风险分散。

（）答案：正确2. 浮动汇率制度下，汇率完全由市场供求关系决定，政府不进行任何干预。

（）答案：错误3. 国际货币基金组织（IMF）的主要任务是调整国际收支失衡，促进成员国经济的稳定增长。

（）答案：正确4. 通货膨胀率高的国家，其货币汇率往往呈贬值趋势。

（）答案：正确四、简答题1. 简述国际金融市场的功能。

答案：国际金融市场的功能主要包括以下几点：（1）资金融通功能：为全球范围内的资金需求者和资金供应者提供融资和投资渠道；（2）风险分散功能：通过金融工具的多样化，降低投资者面临的风险；（3）价格发现功能：金融市场上的价格反映了市场供求关系，有助于投资者做出投资决策；（4）促进国际贸易和投资的发展：国际金融市场为国际贸易和投资提供了便利条件。