Название теста:international Currency Relations Предназначено для студентов специальности:international Relations 2(4)

Transcription

1 Название теста:international Currency Relations Предназначено для студентов специальности:international Relations 2(4) Текст вопроса 1 The currency used to buy imported goods is 2 If portable disk players made in China are imported into the United States, the Chinesemanufacturer is paid with 3 If the United States sells beef to Japan, the U.S. beef producer is paid with 4 When Safeway supermarkets in the United States buys strawberries from Mexico, 5 A country records its international finance accounts in its 6 A country's balance of payments accounts record 7 A country's balance of payments accounts include all of the following EXCEPT 8 The largest part of the U.S. current account consists of 9 The balance of payments account that records foreign investment in the United States is the 10 The market in which the currency of one country is exchanged for the currency of another country is the. 11 Suppose that $1 Canadian can buy $0.65 U.S. and $1 U.S. can buy $1.54 Canadian. These areexamples of. 12 If the expected future exchange rate falls, the exchange rate, and the equilibriumquantity of dollars. 13 If the Fed wants to depreciate the U.S. dollar against the British pound, it will. 14 The foreign exchange rate is the price at which the of one country exchanges for the of another country. 15 By definition, currency depreciation occurs when the value of 16 Which of the following examples definitely illustrates a depreciation of the U.S. dollar? 17 Which of the following examples definitely illustrates a depreciation of the U.S. dollar? 18 When the U.S. dollar depreciates against the yen, the yen becomes expensive and theexchange rate. 19 When the U.S. dollar depreciates against the yen, the yen and the exchange rate. 20 Suppose the exchange rate of the U.S. dollar was 1.50 British pounds = $1.00 (U.S.) onwednesday, and on Monday the exchange rate was $.75 (U.S.) = 1.00 British pound. Which ofthe following best describes what happened between Wednesday and Monday? 21 By definition, currency appreciation occurs when 22 Which of the following examples definitely illustrates an appreciation of the U.S. dollar? 23 Other things remaining the same, the the exchange rate for dollars, the greater the in the foreign exchange market. 24 Which of the following examples definitely illustrates an appreciation of the U.S. dollar? 25 Suppose the exchange rate of the U.S. dollar was 1.00 German mark = $0.50 (U.S.) on Thursday,and on Friday the exchange rate was $1.00 (U.S.)

2 = 2.10 German marks. Which of the followingbest describes what happened between Thursday and Friday? 26 Finish the statement: The amount of information an individual would seek before making a decision 27 The law of demand for dollars means that 28 A rise in the U.S. exchange rate will 29 A fall in the U.S. exchange rate will 30 The the current exchange rate, the is the expected profit from holdingdollars, all other things remaining the same. 31 As the exchange rate, the quantity of dollars on the foreign exchange market. 32 The the exchange rate, the are foreign-produced goods and hence thegreater the quantity of dollars supplied. 33 The the exchange rate, the are foreign-produced goods and hence thesmaller the quantity of dollars supplied. 34 The quantity of dollars supplied will increase if 35 The quantity of dollars supplied will decrease if 36 The the expected profit from holding a foreign currency, the greater is the inthe foreign exchange market. 37 Which of the following statements is correct? 38 The larger the U.S. interest rate differential, the 39 As the expected future exchange rate for dollars increases, 40 An increase in the U.S. demand for imports will the supply of dollars and lead thedollar to. 41 An increase in U.S. exports will the demand for dollars and lead the dollar to. 42 The involves transactions in the present 43 The involves contracts today for transactions that will take place in the future. 44 is the transfer of funds toanother currency to take advantage of a higherinterest rate. 45 is accompanied by a forward-market transactionto protect against changes in exchange rates. 46 is expressed in units ofone currency per unit of the other. 47 adjusts this for changes in price levels in bothcurrencies. 48 Which of the following transactions refers to the sale of goods or services produced by a company based in one country to customers that reside in a different country? 49 Which of the following is NOT an example of a service export? 50 This spring break you are planning to leave the U.S. and visit London, where you will stay in a hotel for 10 days. The London hotel will be performing a. 51 All of the following are common problems associated with exporting and importing EXCEPT.

3 52 In conducting, a business sells goods directly to or through an independent domestic intermediary in the exporter's home country that exports the products to foreign markets. 53 Which of the following is NOT one of the common ways that trade intermediaries are paid by exporters? 54 Corbin Coffee plans to initiate activities in foreign markets through indirect exporting. The firm is most likely to use. 55 A(n) operates on a contractual basis and provides exclusive representation for an exporter's goods and services in a foreign market. 56 Exporters who opt for direct exporting are most likely to. 57 An exporter that implements a(n) strategy does so with the intent to develop its own international marketing capability. 58 The movement of assets out of a country 59 represents borrowing from abroad 60 A term used to describe how easy it is for domestic and foreign residents to exchange assets. 61 An international organization created at the Bretton Woods conference in consist primarily of holdings of foreign governments bonds (denominated in foreign currency) 63 The basic idea behind is that international commodity arbitrage will enforce the law-of-one-price. 64 The price at which a trader or market maker is willing to sell a contract 65 The price at which a trader or market maker is willing to purchase a contract to enter into a transaction. 66 A certificate of debt, generally long-term, under the terms of which an issuer contracts to pay the holder a fixed principal 67 A public entity where a company s stock and derivatives are traded. 68 Money available to spend now. 69 An economic resource that is expected to be of benefit in the future 70 The annual rate of interest that the issuer of a bond promises to pay to the holder of the bond. 71 An individual or firm who buys and sells securities for his or her own account, acting as principal and taking title of the securities until they are sold to someone else. 72 Investment instruments such as stocks and bonds 73 The annual rate of return on an investment, expressed as a percentage of the investment. 74 The value of a security expressed as a specific dollar amount marked on the face of the security, or the amount of money due at maturity. 75 The over-the-counter currency exchanges around the world that perform conversions between different national currencies, and help to determine comparative values of the currencies. 76 A global decentralized market for the trading of currencies. 77 The is also known as the Offer

4 78 A bank made up of members of the IMF whose aim is to assist in the development of member states by making loans where private capital is not available. 79 The speed with which money circulates or turnover in the economy. 80 A measure of the amount by which an asset price is expected to fluctuate over a given period 81 The date on which a trade occurs. 82 The date on which a trade occurs. 83 The seven leading industrial countries, being US, Germany, Japan, France, UK, Canada, Italy. 84 The five leading industrial countries - US, Germany, Japan, France, UK. 85 Total value of a country's output, income or expenditure produced within the country's physical borders. 86 Gross domestic product plus " factor income from abroad" - income earned from investment or work abroad. 87 Choose the correct statement 88 is a financial institution licensed as a receiver of deposits. 89 An appreciation of the U.S. dollar refers to 90 The rate is the price of one country's money in units of another country's money 91 The rate at which one country's currency is exchanged for another country's currency within two days after the exchange is agreed to is referred to as the 92 If parties to a transaction agree on the rate at which two currencies will be exchanged at a specific time several months the future, they have agreed to a(n): 93 The market is the foreign exchange trading that is done by banks with their customers. 94 The center of global foreign exchange trading is: 95 U.S. capital outflows create a(n): 96 If the exchange rate of a currency is determined by the foreign exchange market without the intervention of government, the exchange rate system is known as a(n) exchange rate system. 97 If a country's government acts to reduce the fixed value of its currency, the change is called a(n) 98 is the process by which an investor buys a currency in one market at a particular exchange rate and then almost immediately sells that currency in another market where the exchange rate for the currency is more advantageous, thereby ensuring an almost risk-free profit 99 When a resident of Germany buys a U.S. Treasury bond, there will be a(n) 100 The interbank part of the foreign exchange market involves banks trading with in foreign exchange. 101 The functions of money are 102 Which of the following is a primary function of money?

5 103 confers the right but not the obligation to sell currencies, instruments or futures at the option exercise price within a predetermined time period. 104 The value of a country's exports minus its imports 105 Describes a currency strengthening in response to market demand rather than by official action. 106 The opposite of Appreciation 107 What is the price at which one can enter into a contract today to buy or sell a currency 30 days from now? 108 A broad term relating to risk management instruments such as futures, options, swaps, etc. 109 A person who believes that prices will decline 110 Model of exchange rate determination stating that the price of a good in one country should equal the price of the same good in another country after adjusting for the changes in the price due to the change in exchange rate 111 do not pay periodic coupon payments. 112 The face or par value of a security. It does not include accrued interest. 113 Short-term securities with market prices more closely tied to the current interest rate than to a company's standing or to general business conditions. 114 The price at which a security is currently being sold in the market 115 The date that the principal or stated value of a debt instrument becomes due and payable 116 The ease at which a security can be bought or sold (converted to cash) in the market. 117 A person who purchases securities with the intention of holding them to make a profit 118 From the viewpoint of a corporation, which source of long-term funding does not have to be repaid? 119 A method used by traders to minimize losses resulting from price fluctuations in the money market. 120 An accounting or tax period comprising any 12-month period 121 An individual or firm that ordinarily acts as a principal in security transactions. 122 An intermediary who brings buyers and sellers together and handles their orders, generally charging a commission for this service. 123 A period of generally optimistic attitudes and increasing market prices 124 For additional funding, a company decides to issue $15 million in corporate bonds with maturirty of 10 years. The securities will be issued into the: 125 A market conducted directly between dealers and principals 126 Foreign exchange dealer's slang for your price is the correct market price 127 Which of the following is NOT a feature of a debt instrument? 128 Date for settlement of the transaction which is decided at the time of entering into the contract. 129 An open-end investment company

6 130 The amount of money in the economy, which can be measured in a number of ways. 131 The role of money as a store of value refers to: 132 Which of the following is loan? 133 Includes demand deposits, time deposits and money market mutual funds excluding large CDs. 134 The main aim of foreign exchange markets is to allow people to 135 Cash in circulation plus demand deposits at commercial banks 136 A market characterized by rising prices 137 The site of the conference which in 1944 led to the establishment of the post war foreign exchange system that remained intact until the early 1970s. 138 The market in which participants are able to buy, sell, exchange and speculate on currencies 139 is a country's exchange rate regime under which the government or central bank ties the official exchange rate to another country's currency (or the price of gold) 140 An intentional downward adjustment to the value of a country's currency, relative to another currency 141 Direct financing allows a borrower to: 142 The price of a nation s currency in terms of another currency. 143 A period of generally pessimistic attitudes and declining market prices. 144 The 's primary purpose is to ensure the stability of the international monetary system the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. 145 Methods used to control the quantity of goods coming into a country to be sold: 146 Types of controls that governments put in place to ban or restrict the amount of foreign currency or local currency that is allowed to be traded or purchased 147 Choose the statement that is true. 148 The debt one government owes to a foreign government or corporation. 149 A decrease in the level of a currency in a floating exchange rate system due to market forces 150 The Fed s most important duty is to