2025年國際金融英文試題及答案I.MultipleChoiceQuestions(30points,2pointseach)1.Whichofthefollowingisnotamajorfunctionoftheinternationalfinancialsystem?A.FacilitatingtheflowofcapitalacrossbordersB.ProvidingamechanismforcurrencyexchangeC.RegulatingdomesticinterestratesonlyD.HelpingtoallocateresourcesgloballyAnswer:C.Theinternationalfinancialsystemismainlyconcernedwithcrossborderfinancialactivities.Whileitcanhaveanimpactondomesticinterestrates,itsmainfunctionsincludefacilitatingcrossbordercapitalflows,providingcurrencyexchangemechanisms,andglobalresourceallocation.Regulatingonlydomesticinterestratesismoreofafunctionofdomesticmonetarypolicy.2.Thespotexchangerateis:A.TherateatwhichcurrencieswillbeexchangedatafuturedateB.TherateatwhichcurrenciesareexchangedimmediatelyC.TheratedeterminedbythecentralbankforlongtermtransactionsD.TherateusedforinternationaltradethatwillbesettledinoneyearAnswer:B.Thespotexchangeratereferstotheexchangerateforimmediatecurrencytransactions.Aforwardexchangerateisforfuturedateexchanges.Centralbanksmayinfluenceexchangerates,butthespotrateisforimmediateexchanges,notlongtermoroneyearsettledtradespecificrates.3.IftheinflationrateintheUnitedStatesishigherthanthatinJapan,accordingtothepurchasingpowerparitytheory:A.TheUSdollarshouldappreciateagainsttheJapaneseyenB.TheJapaneseyenshouldappreciateagainsttheUSdollarC.TherewillbenochangeintheexchangeratebetweenthetwocurrenciesD.TheexchangeratewillbedeterminedbyinterestratedifferentialsonlyAnswer:B.Accordingtothepurchasingpowerparitytheory,ifacountryhasahigherinflationrate,itscurrencyshoulddepreciate.SincetheUShasahigherinflationratethanJapan,theJapaneseyenshouldappreciateagainsttheUSdollar.Interestratedifferentialsarerelatedtotheinterestrateparitytheory,notthemainfactorhereaccordingtoPPP.4.Whichofthefollowingisacharacteristicofafixedexchangeratesystem?A.TheexchangerateisdeterminedsolelybymarketforcesB.ThecentralbankhasnoroleinmaintainingtheexchangerateC.TheexchangerateiskeptwithinanarrowbandaroundafixedvalueD.TheexchangeratefluctuatesfreelybasedonsupplyanddemandAnswer:C.Inafixedexchangeratesystem,thecentralbankintervenesintheforeignexchangemarkettokeeptheexchangeratewithinanarrowbandaroundapredeterminedfixedvalue.Inafloatingexchangeratesystem,theexchangerateisdeterminedbymarketforcesandfluctuatesfreelybasedonsupplyanddemand.5.Acountrywithacurrentaccountsurplus:A.IsborrowingfromtherestoftheworldB.HasmoreimportsthanexportsC.IslendingtotherestoftheworldD.HasanegativebalanceinitsfinancialaccountAnswer:C.Acurrentaccountsurplusmeansthatacountry'sexportsofgoodsandservicesaregreaterthanitsimports.Theexcessfundscanbeusedtolendtoothercountries.Acountrywithacurrentaccountsurplususuallyhasapositivebalanceinitsfinancialaccountasitisanetlendertotherestoftheworld.6.Theinterestrateparitytheorystatesthat:A.ThedifferenceininterestratesbetweentwocountriesisequaltotheexpectedchangeintheexchangerateB.InterestratesarethesameinallcountriesC.ExchangeratesarenotaffectedbyinterestratedifferentialsD.TherealinterestrateisalwayszeroAnswer:A.Theinterestrateparitytheorypositsthatthedifferenceininterestratesbetweentwocountriesisequaltotheexpectedchangeintheexchangerate.Thishelpstoexplaintherelationshipbetweeninterestratesandexchangeratesintheinternationalfinancialmarket.Interestratesvaryacrosscountries,andexchangeratesareaffectedbyinterestratedifferentials.Therealinterestrateisnotalwayszero.7.Whichofthefollowingisacomponentofthebalanceofpaymentscapitalaccount?A.ExportsofgoodsB.ImportsofservicesC.ForeigndirectinvestmentD.IncomefromforeigninvestmentsAnswer:C.Thebalanceofpaymentscapitalaccountincludesforeigndirectinvestment,portfolioinvestment,andothercapitalrelatedtransactions.Exportsofgoodsandimportsofservicesarepartofthecurrentaccount,andincomefromforeigninvestmentsisalsoacurrentaccountitem.8.Amultinationalcorporation(MNC)mayfaceexchangerateriskwhen:A.ItonlyoperatesinitshomecountryB.IthasnoforeigncurrencydenominatedassetsorliabilitiesC.IthasforeigncurrencydenominatedassetsorliabilitiesD.ExchangeratesarefixedAnswer:C.AnMNCfacesexchangerateriskwhenithasforeigncurrencydenominatedassetsorliabilities.Ifexchangerateschange,thevalueoftheseassetsandliabilitiesinthehomecurrencytermswillchange.IfanMNConlyoperatesinitshomecountryorhasnoforeigncurrencyrelateditems,itdoesnotfacethisrisk.Eveninafixedexchangeratesystem,therecanbeariskofachangeinthefixedrate.9.Theeurozoneisanexampleof:A.AfreetradeareaB.AcustomsunionC.AcommonmarketD.AneconomicandmonetaryunionAnswer:D.Theeurozoneisaneconomicandmonetaryunion.Membercountriesshareacommoncurrency(theeuro)andhavecoordinatedmonetarypolicies.Afreetradeareaonlyeliminatestariffsontradebetweenmembers,acustomsunionaddsacommonexternaltariff,andacommonmarketallowsforthefreemovementofgoods,services,capital,andlabor,buttheeurozonegoesfurtherwithasinglecurrencyandaunifiedcentralbank.10.Whichofthefollowingisafactorthatcancauseacountry'scurrencytodepreciate?A.HigherinterestratesinthecountryB.LowerinflationratecomparedtoothercountriesC.Alargeincreaseinthecountry'sgovernmentdebtD.Anincreaseinforeigndemandforthecountry'sexportsAnswer:C.Alargeincreaseinacountry'sgovernmentdebtcanleadtoconcernsaboutthecountry'seconomicstability.Thiscancauseinvestorstoloseconfidenceinthecountry'scurrency,leadingtoadepreciation.Higherinterestratesusuallyattractforeigncapitalandcausethecurrencytoappreciate.Alowerinflationratecomparedtoothercountriesandanincreaseinforeigndemandforexportsalsotendtostrengthenthecurrency.11.TheinternationalFishereffectsuggeststhat:A.NominalinterestratesarethesameinallcountriesB.ThedifferenceinnominalinterestratesbetweentwocountriesisequaltothedifferenceinexpectedinflationratesC.RealinterestratesarealwaysnegativeD.ExchangeratesarenotrelatedtointerestratesAnswer:B.TheinternationalFishereffectstatesthatthedifferenceinnominalinterestratesbetweentwocountriesisequaltothedifferenceinexpectedinflationrates.Nominalinterestratesvaryacrosscountries,realinterestratescanbepositive,negative,orzero,andexchangeratesarerelatedtointerestratesthroughtheorieslikeinterestrateparity.12.Acountrythatwantstoincreaseitsforeignexchangereservescan:A.SellitsowncurrencyintheforeignexchangemarketB.BuyitsowncurrencyintheforeignexchangemarketC.IncreaseitsimportsD.DecreaseitsexportsAnswer:A.Whenacountrysellsitsowncurrencyintheforeignexchangemarket,itreceivesforeigncurrenciesinreturn,whichincreasesitsforeignexchangereserves.Buyingitsowncurrencyreducesforeignexchangereserves.Increasingimportsanddecreasingexportsleadtoareductionintheinflowofforeigncurrencyandmaydepleteforeignexchangereserves.13.Whichofthefollowingisadisadvantageofafloatingexchangeratesystem?A.ItprovideslessflexibilityformonetarypolicyB.ItcanleadtoexchangeratevolatilityC.ItrequireslargeamountsofforeignexchangereservesD.ItrestrictsinternationaltradeAnswer:B.Oneofthemaindisadvantagesofafloatingexchangeratesystemisexchangeratevolatility.Thisvolatilitycancreateuncertaintyforbusinessesengagedininternationaltradeandinvestment.Afloatingexchangeratesystemactuallyprovidesmoreflexibilityformonetarypolicy,doesnotrequirelargeamountsofforeignexchangereservesforexchangeratepegging,anddoesnotdirectlyrestrictinternationaltrade.14.Acountry'sbalanceofpaymentsisinequilibriumwhen:A.ThecurrentaccountbalanceiszeroB.ThecapitalaccountbalanceiszeroC.ThesumofthecurrentaccountandthecapitalaccountbalancesiszeroD.ThefinancialaccountbalanceiszeroAnswer:C.Thebalanceofpaymentsisinequilibriumwhenthesumofthecurrentaccountandthecapitalaccount(includingthefinancialaccount)balancesiszero.Azerocurrentaccountbalanceorzerocapitalaccountbalancealonedoesnotnecessarilymeantheoverallbalanceofpaymentsisinequilibrium.15.Whichofthefollowingisanexampleofforeigndirectinvestment(FDI)?A.AdomesticinvestorbuyingsharesofaforeigncompanyonthestockexchangeB.AforeigncompanysettingupamanufacturingplantinahostcountryC.AdomesticbanklendingmoneytoaforeigngovernmentD.AtouristfromonecountryspendingmoneyinanothercountryAnswer:B.Foreigndirectinvestmentinvolvesaforeignentityestablishingaphysicalpresence,suchasamanufacturingplant,inahostcountry.Buyingsharesonthestockexchangeisportfolioinvestment.Adomesticbanklendingmoneytoaforeigngovernmentisaformofinternationallending,andtouristspendingispartofthecurrentaccount'sservicescomponent.II.TrueorFalseQuestions(20points,2pointseach)1.TheBrettonWoodssystemwasacompletelyfloatingexchangeratesystem.Answer:False.TheBrettonWoodssystemwasafixedexchangeratesystemwherethevalueoftheUSdollarwasfixedtogold,andothercurrencieswerefixedtotheUSdollar.2.Acountrywithahighsavingsrateismorelikelytohaveacurrentaccountsurplus.Answer:True.Ahighsavingsratemeansthatacountryhasmorefundsavailableforinvestment.Ifdomesticinvestmentisnotsufficienttoabsorballthesavings,theexcesssavingscanbeusedtofinanceexports,leadingtoacurrentaccountsurplus.3.Exchangerateriskcanbecompletelyeliminatedthroughhedging.Answer:False.Whilehedgingcanreduceexchangeraterisk,itcannotcompletelyeliminateit.Therearealwaysbasisrisks,andunforeseeneventscanstillaffecttheeffectivenessofhedgingstrategies.4.TheWorldBankmainlyfocusesonprovidingshorttermloanstocountriesfacingbalanceofpaymentsproblems.Answer:False.TheInternationalMonetaryFund(IMF)mainlyprovidesshorttermloanstocountrieswithbalanceofpaymentsproblems.TheWorldBankfocusesonlongtermdevelopmentprojectsindevelopingcountries.5.Acountry'scurrencyappreciationcanmakeitsexportsmorecompetitiveintheinternationalmarket.Answer:False.Whenacountry'scurrencyappreciates,itsexportsbecomemoreexpensiveforforeignbuyers,whichreducestheircompetitivenessintheinternationalmarket.6.Theinterestrateparitytheoryassumesthattherearenotransactioncostsandnocapitalcontrols.Answer:True.Theinterestrateparitytheoryisbasedontheassumptionsofnotransactioncosts,nocapitalcontrols,andperfectcapitalmobilitytoestablishtherelationshipbetweeninterestratesandexchangerates.7.Inacurrencyboardsystem,thecentralbankhasfullcontroloverthemoneysupply.Answer:False.Inacurrencyboardsystem,themoneysupplyislinkedtotheamountofforeignexchangereserves.Thecentralbankhaslimitedcontroloverthemoneysupplyasithastomaintainafixedexchangeratebybackingthedomesticcurrencywithforeigncurrencyatafixedratio.8.Amultinationalcorporationcanusetransferpricingtominimizeitsglobaltaxliability.Answer:True.Multinationalcorporationscanmanipulatetransferprices(priceschargedforgoodsandservicestransferredbetweentheirsubsidiaries)toshiftprofitstolowtaxcountriesandminimizetheiroveralltaxliability.9.Thecurrentaccountdeficitmustbefinancedbyacapitalaccountsurplus.Answer:True.Accordingtothebalanceofpaymentsaccountingidentity,thesumofthecurrentaccountandthecapitalaccount(includingthefinancialaccount)mustbezero.So,acurrentaccountdeficitmustbeoffsetbyacapitalaccountsurplus.10.Acountrywithastrongcurrencyisalwaysbetteroffintermsofitseconomicsituation.Answer:False.Whileastrongcurrencycanhavesomeadvantagessuchascheaperimportsandlowerinflationarypressures,itcanalsomakeexportslesscompetitive,whichcanharmdomesticindustriesthatrelyonexports.So,astrongcurrencyisnotalwaysbeneficialforacountry'soveralleconomicsituation.III.ShortAnswerQuestions(30points,10pointseach)1.Explainthemaindifferencesbetweenafixedexchangeratesystemandafloatingexchangeratesystem.Inafixedexchangeratesystem,theexchangerateissetatapredeterminedlevelandismaintainedwithinanarrowband.Thecentralbankplaysacrucialroleinthissystem.Itintervenesintheforeignexchangemarketbybuyingorsellingitsowncurrencytokeeptheexchangeratestable.Forexample,ifthedomesticcurrencyisunderpressuretodepreciate,thecentralbankwillsellforeignexchangereservesandbuythedomesticcurrency.Thissystemprovidesstabilityforinternationaltradeandinvestmentasbusinessescanpredictexchangeratesmoreaccurately.However,itrequiresthecentralbanktoholdlargeamountsofforeignexchangereservesandmaylimittheflexibilityofmonetarypolicy.Ontheotherhand,afloatingexchangeratesystemallowstheexchangeratetobedeterminedbymarketforcesofsupplyanddemand.Thereisnocentralbankinterventiontomaintainaspecificexchangeratelevel.Exchangeratesfluctuatefreelybasedonvariousfactorssuchasinterestratedifferentials,inflationrates,andeconomicgrowth.Thissystemgivesthecentralbankmoreflexibilityinconductingmonetarypolicyasitdoesnothavetofocusonmaintainingtheexchangerate.Butitalsoleadstoexchangeratevolatility,whichcancreateuncertaintyforbusinessesengagedininternationaltradeandinvestment.2.Discussthefactorsthatcanaffectacountry'sexchangerate.Severalfactorscaninfluenceacountry'sexchangerate.Interestratesareasignificantfactor.Higherinterestratesinacountryattractforeigninvestorsseekinghigherreturns.Thisincreasesthedemandforthecountry'scurrency,causingittoappreciate.Forexample,iftheUSraisesitsinterestrateswhileothercountrieskeeptheirsstable,foreigninvestorswillbemorelikelytoinvestinUSassets,increasingthedemandfortheUSdollar.Inflationratesalsoplayarole.Accordingtothepurchasingpowerparitytheory,acountrywithahigherinflationratewillseeitscurrencydepreciate.Ifacountry'spricesarerisingfasterthanthoseofitstradingpartners,itsgoodsandservicesbecomerelativelymoreexpensive,reducingexportsandincreasingimports.Thisleadstoadecreaseinthedemandforthecountry'scurrencyandanincreaseinitssupplyintheforeignexchangemarket,causingdepreciation.Economicgrowthisanotherfactor.Acountrywithstrongeconomicgrowthislikelytoattractmoreforeigninvestment.Thiscanincreasethedemandforthecountry'scurrencyandleadtoappreciation.However,ifthegrowthisaccompaniedbyalargeincreaseinimports,itmayputdownwardpressureonthecurrency.Politicalstabilityiscrucial.Acountrywithastablepoliticalenvironmentismoreattractivetoforeigninvestors.Incontrast,politicalunrest,suchascivilwarsorfrequentchangesingovernment,canleadtoalossofconfidenceinthecountry'scurrency,causingittodepreciate.Finally,balanceofpaymentspositionsmatter.Acurrentaccountsurplus(moreexportsthanimports)meansthatthereisanetinflowofforeigncurrency,whichcanstrengthenthedomesticcurrency.Acurrentaccountdeficit,ontheotherhand,mayleadtoadepreciationofthecurrencyasthereisanetoutflowofthedomesticcurrencytopayforimports.3.Explainhowamultinationalcorporationcanmanageitsexchangeraterisk.Multinationalcorporationscanuseseveralmethodstomanageexchangeraterisk.Onecommonmethodishedgingthroughforwardcontracts.Aforwardcontractisanagreementtobuyorsellacertainamountofforeigncurrencyatapredeterminedexchangerateonafuturedate.Forexample,ifaUSbasedMNCexpectstoreceivepaymentineurosinthreemonths,itcanenterintoaforwardcontracttoselleurosatafixedexchangerate.ThislocksintheexchangerateandprotectstheMNCfrompotentialcurrencydepreciation.Futurescontractsarealsosimilartoforwardcontractsbutarestandardizedandtradedonexchanges.Theyoffermoreliquiditybutmayhavelessflexibilityintermsofcontractterms.Optionsareanotherhedgingtool.Acalloptiongivestheholdertheright,butnottheobligation,tobuyaforeigncurrencyataspecifiedpricewithinacertainperiod.Aputoptiongivestherighttosellaforeigncurrency.MNCscanuseoptionstoprotectthemselvesfromunfavorableexchangeratemovementswhilestillhavingtheopportunitytobenefitfromfavorableones.Naturalhedgingisanonfinancialapproach.MNCscantrytomatchtheirforeigncurrencydenominatedrevenuesandcosts.Forexample,ifacompanyhasasubsidiaryinaforeigncountrythatgeneratesrevenuesinthelocalcurrency,itcanalsoincurcostsinthesamecurrency.Thisway,exchangeratefluctuationswillhaveasmallerimpactonthecompany'soverallprofitability.TheMNCcanalsoadjustitsoperatingstrategies.Itcanshiftproductiontocountrieswithmorefavorableexchangeratesorsourceinputsfromcountrieswherethecurrencyisweaker.Additionally,itcanpriceitsproductsandservicesindifferentcurrenciesbasedonexchangerateexpectationstomanageitsexposure.IV.EssayQuestion(20points)Discusstheimpactofglobalizationontheinternationalfinancialsystem.Globalizationhashadaprofoundandfarreachingimpactontheinternationalfinancialsystem.1.IncreasedCapitalMobilityOneofthemostsignificantimpactsistheincreasedmobilityofcapitalacrossborders.Globalizationhasremovedmanybarrierstocapitalflows,suchascapitalcontrolsandrestrictionsonforeigninvestment.Financialinstitutionscannoweasilyinvestinforeignmarkets,andmultinationalcorporationscanraisecapitalfrominternationalsources.Thishasledtoamoreintegratedglobalfinancialmarket.Forexample,pensionfundsindevelopedcountriescaninvestinemergingmarketbonds,andemergingmarketcompaniescanissuestocksoninternationalstockexchanges.Theincreasedcapitalmobilityhasallowedformoreefficientallocationofresourcesglobally.Capitalcanflowtocountriesandsectorswiththehighestreturns,promotingeconomicgrowthinthoseareas.However,ithasalsoincreasedthevolatilityoffinancialmarkets.Suddencapitaloutflowsfromacountrycanleadtofinancialcrises,asseenintheAsianfinancialcrisisof1997andtheglobalfinancialcrisisof2008.2.ExchangeRateVolatilityGlobalizationhascontributedtogreaterexchangeratevolatility.Withincreasedtradeandcapitalflows,exchangeratesaremoresensitivetochangesineconomicandpoliticalconditionsaroundtheworld.Forinstance,achangeininterestratesintheUnitedStatescanhaveasignificantimpactontheexchangeratesofmanyothercountries.Fluctuationsinexchangeratescancreateuncertaintyforbusinessesengagedininternationaltradeandinvestment.Multinationalcorporationsmayfacedifficultiesinpredictingtheircostsandrevenuesduetoexchangeratemovements.Thishasledtoanincreaseddemandforhedginginstruments,suchasforwardcontracts,futures,andoptions,tomanageexchangeraterisk.3.ConvergenceofFinancialRegulationsInresponsetoglobalization,therehasbeenatrendtowardstheconvergenceoffinancialregulationsacrosscountries.Internationalorganizations,suchastheBaselCommitteeonBankingSupervision,havedevelopedglobalstandardsforbankingregulations.Thisistoensurethestabilityoftheglobalfinancialsystemandtopreventregulatoryarbitrage,wherefinancialinstitutionstakeadvantageofdifferencesinregulationsbetweencountri