国金选择17.docx

国金选择17.docx

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国金选择17

国金选择（17

17.1WhyStudyFixedExchangeRates?

1）Therearenoquestionsforthissection.

Answer:

TRUE

17.2CentralBankInterventionandtheMoneySupply

1）Acentralbank'sinternationalreservesinclude

C）anygoldthatitownsandforeignanddomesticassets.

2）Theliabilitiessideofacentralbankinclude

C）depositsheldbytheprivatebanksandcurrencyincirculation.

3）Whichoneofthefollowingstatementsismosttrue?

A）Anycentralbankpurchaseofassetsautomaticallyresultsinanincreaseinthedomesticmoneysupply,whileanycentralbanksaleofassetsautomaticallycausesthemoneysupplytodecline.

A4）Whichoneofthefollowingstatementsisthemosttrue?

A）Ifcentralbanksarenotsterilizingandthehomecountryhasabalanceofpaymentssurplus,anyassociated

increaseinthehomecentralbank'sforeignassetimpliesanincreasedhomemoneysupply.

5）Whichoneofthefollowingstatementsismosttrue?

C）Ifcentralbanksarenotsterilizingandthehomecountryhasabalanceofpaymentssurplus,anyassociated

decreaseinaforeigncentralbank'sclaimsonthehomecountryimpliesadecreasedforeignmoneysupply.

17.3HowtheCentralBankFixestheExchangeRate1）Asystemofmanagedfloatingexchangeratesis

A）asysteminwhichgovernmentsmayattempttomoderateexchangeratemovementswithoutkeeping

exchangeratesrigidlyfixed.

2）Underfixedexchangerate,ingeneral,

A）thedomesticandforeigninterestratesareequal,R=R.

3）Underfixedexchangerate,ingeneralwhichoneofthefollowingstatementsisthemostaccurate?

A）Thefollowingconditionshouldholdfordomesticmoneymarketequilibrium:

Ms/P=L（R,Y）.4）Whichoneofthefollowingstatementsisthemostaccurate?

D）Underafixedexchangerate,centralbankmonetarytoolsarepowerlesstoaffecttheeconomy'smoney

supplyoritsoutput.

5）Whatistheexpecteddollarrateofreturnondollardepositswithtoday'sexchangerateat$1.10pereuro,next

year'sexpectedexchangerateat$1.165pereuro,thedollarinterestrateat10%,andtheeurointerestrateat5%?

A）10%

17.4StabilizationPolicieswithaFixedExchangeRate

1）Byfixingtheexchangerate,thecentralbankgivesupitsabilityto

E）influencetheeconomythroughmonetarypolicy.

2）FiscalExpansionunderafixedexchangehaswhateffect（s）ontheeconomy:

D）theexchangeratedecreasesinitiallybutthenreturnstoitsoriginalpoint.

3）Whenacountry'scurrencyisdevalued:

B）outputincreases.

D）themoneysupplyincreases.

E）BothBandD.

4）Underfixedrates,whichoneofthefollowingstatementsisthemostaccurate?

C）Monetarypolicycanaffectonlyinternationalreserves.

5）Underfixedrates,whichoneofthefollowingstatementsisthemostaccurate?

A）Fiscalpolicycanaffectoutput,employmentandinternationalreservesatthesametime.

6）Whichoneofthefollowingstatementsisthemostaccurate?

C）Fiscalpolicyaffectsemploymentmoreunderfixedthanunderflexibleexchangerateregimes.

7）Whichoneofthefollowingstatementsisthemostaccurate?

B）Fiscalpolicyaffectsoutputmoreunderfixedthanunderflexibleexchangerateregimes.

8）Whichoneofthefollowingstatementsisthemostaccurate?

B）Adevaluationoccurswhenthecentralbankraisesthedomesticcurrencypriceofforeigncurrency,E,anda

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revaluationoccurswhenthecentralbanklowersE.

9）Whichoneofthefollowingstatementsisthemostaccurate?

C）DepreciationisariseinEwhentheexchangeratefloatswhiledevaluationisariseinEwhentheexchange

rateisfixed.

10）Whichoneofthefollowingstatementsisthemostaccurate?

B）AppreciationisafallinEwhentheexchangeratefloatswhilerevaluationisafallinEwhentheexchange

rateisfixed.

11）Whichoneofthefollowingstatementsisthemostaccurate?

C）Devaluationreflectsadeliberategovernmentdecisionwhiledepreciationisanoutcomeofgovernment

actionsandmarketforcesactingtogether.

12）Whichoneofthefollowingstatementsisthemostaccurate?

B）Revaluationreflectsadeliberategovernmentdecisionwhileappreciationisanoutcomeofgovernment

actionsandmarketforcesactingtogether.

13）Underfixedexchangerate,whichoneofthefollowingstatementsisthemostaccurate?

B）Devaluationcausesariseinoutput,ariseinofficialreserves,andanexpansionofthemoneysupply.

A14）Underfixedexchangerate,whichoneofthefollowingstatementsisthemostaccurate?

A）Devaluationcausesariseinoutput.

15）Underfixedexchangerate,whichoneofthefollowingstatementsisthemostaccurate?

C）Devaluationcausesanexpansionofthemoneysupply.

16）Themainreason（s）whygovernmentssometimeschosetodevaluetheircurrenciesis（are）:

A）devaluationallowsthegovernmenttofightdomesticunemploymentdespitethelackofeffectivemonetary

policy.

B）devaluationimprovesinthecurrentaccount.

C）devaluationincreasesforeignreservesheldbythecentralbank.

D）Alloftheabove.

17.5BalanceofPaymentsCrisesandCapitalFlight1）Abalanceofpaymentscrisisisbestdescribedas

B）asharpchangeinforeignreservessparkedbyachangeinexpectationsaboutthefutureexchangerate.

2）Theexpectationoffuturedevaluationcausesabalanceofpaymentscrisismarkedby

C）asharpfallinreservesandariseinthehomeinterestrateabovetheworldinterestrate.

3）Theexpectationoffuturerevaluationcausesabalanceofpaymentscrisismarkedby

A）asharpriseinreservesandafallinthehomeinterestratebelowtheworldinterestrate.

4）Capitalflight

A）decreasesreserves.

B）isoftenassociatedwiththeexpectationofdevaluation.

C）mayindirectlyinducedevaluation.

E）A,B,andC.

5）Currencycrisesmayresultfrom

A）excessivepurchasesofgovernmentbondsbycentralbanks.

B）speculativeattacksonthecurrency.

D）AandB.

C6）Whichofthefollowingbestdescribesadeliberategovernmentdecisiontolowertheexchangerate,E?

C）revaluation

17.6ManagedFloatingandSterilizedIntervention

1）Imperfectassetsubstitutabilityassumes:

B）thereturnsonforeignanddomesticcurrencyaredifferentingeneral.

C）thereturnsonforeignanddomesticcurrencyareinfluencedbyrisk.

E）BothBandC.

E2）AfterintroducingtheRealasitsnewcurrencyin1994,Brazil

A）lostcompetitivenessinforeignmarketssincetheRealexperiencedarealappreciation.B）experiencedhighdomesticinterestrates.

C）reduceditsannualrateofinflation.

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D）experiencedbankfailures.

E）Alloftheabove.

3）In1999,followingthefailureofa$40billionIMFstabilizationplan,Brazil

C）wasforcedtodevaluetheReal.

4）Perfectassetsubstitutabilityistheassumptionthat

D）theforeignexchangemarketisinequilibriumonlywhenexpectedreturnsondomesticassetsareequalto

returnsonforeigncurrencybonds.

5）Imperfectassetsubstitutabilityexists

D）whenthereisriskintheforeignexchangemarket.

6）TheinterestparityconditioncanbewrittenasB）R=R+（Ee-E）/E.

7）Whendomesticandforeigncurrencybondsareimperfectsubstitutes,thedomesticinterestrate（R）canbe

writtenasC）R=R+（Ee-E）/E+ρ.

8）Intheinterestrateparityconditionwithimperfectsubstitutesandariskpremiumofρ

A）anincreasedstockofdomesticgovernmentdebtwillraisethedifferencebetweentheexpectedreturnson

domesticandforeigncurrencybonds.

9）Thesignalingeffectofforeignexchangeintervention

B）canalterthemarket'sviewoffuturemonetaryorfiscalpolicies.

C）cancauseanimmediateexchangeratechangeevenwhenbondsdenominatedindifferentcurrenciesare

perfectsubstitutes.E）BandC.

17.8TheGoldStandard1）From1837andupuntiltheCivilWar,theUnitedStatesadheredtoa

C）bimetallicstandard.

2）Imperfectassetsubstitutabilityassumes:

B）thereturnsonforeignanddomesticcurrencyaredifferentingeneral.

C）thereturnsonforeignanddomesticcurrencyareinfluencedbyrisk.

E）BothBandC.

18.1MacroeconomicPolicyGoalsinanOpenEconomy

1）Undertheprice-specie-flowmechanism,whathappenswhensayGermany'scurrentaccountsurplusisgreater

thanitsnon-reservecapitalaccountdeficits?

C）GoldreserveswillflowintoGermany.

2）The\

A）sellingdomesticassetsinadeficitandbuyingassetsinasurplus.

C3）Acountryseekingtomaintaininternalbalancewouldbemostconcernedwith:

C）largefluctuationsinoutput.

4）Byinternalbalance,mosteconomistsmean

C）fullemploymentandpricestability.

A5）Byexternalbalance,mosteconomistsmeans,

A）avoidingexcessiveimbalancesininternationalpayments.

6）Whichoneofthefollowingstatementsistrue?

C）Inflationordeflationcanoccurevenunderconditionsoffullemployment.

7）Inflationcanoccurevenunderconditionsoffullemployment

A）onlyifthecentralbankcontinuestoinjectmoneyintotheeconomyandtheagents'expectationsof

inflationaresupportedbythebank'sactivities.

B8）AsuddenincreaseintheU.S.pricelevel

B）makesthosewithdollardebtsbetteroff.

B9）AsuddenincreaseintheU.S.pricelevel

B）makescreditorsindollarsworseoff.

A10）AsuddendecreaseintheU.S.pricelevel

A）makesthosewithdollardebtsworseoff.

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A11）AsuddendecreaseintheU.S.pricelevel

A）makescreditorsindollarsbetteroff.

B12）Acurrentaccountsurplus

B）mayposenoproblemifdomesticsavingsarebeinginvestedmoreprofitablyabroadthantheywouldb