1 （一）论述、简答、计算题：
1、What is the current account balance of France when the French budget surplus is 348
million Euros, private saving is 256 million Euros, domestic capital formation is 134 million
Euros?
解答：
National saving = private saving + government saving = 256+348=604 million
Current account balance = national saving – domestic real investment = 604-134=470 million
附：Current account balance(CA)=net foreign investment(If)
National saving(S)=domestic real investment(Id)+net foreign investment(If)
If=CA=S-Id , CA=Y(domestic production of goods and services)-E(total expenditures on
goods and services)
2、Which of the following transactions could contribute to a British current account surplus?
Explain why
a French firm sells defense equipment to the British government for 250 million pounds in bank
deposits
b Great Britain makes a gift of $500 million to the Iraqi government to aid in reconstruction.
c The United States borrows 200 million pounds on a short-term basis from the British
government to buy 200 million pounds in textiles from Great Britain.
C：merchandise exports——current account surplus
A：merchandise imports——current account deficit
B：unilateral transfer——current account deficit
3、You are provided with the following information about a country’s international transactions
during a given year:
Service exports $346
Service imports $354
Merchandise exports $480
Merchandise imports $348
Income flows, net $153
Unilateral transfers, net $142
Increase in the country’s holding of foreign assets, net
(excluding official reserves assets) $352
Increase in foreign holdings of the country’s assets, net
(excluding official reserve assets) $252
Statistical discrepancy, net $154
a. Calculate the official settlements balance and the current account balance.
b. Is the country increasing or decreasing its net holdings of official reserve assets?
Why?
A: Current account balance=net credits – net debits on(the flow of goods ,services ,income
and unilateral transfer)=（346—354）+（480—348）+153—142 = 135
Financial account balance= foreign holdings of the country’s assets – the country’s holding 2 of foreign assets =—352 + 252 = — 100
So, official settlement balance(B)=CA balance + financial account balance= 135 — 100=35
B: Current account balance = 132—8+153—142=135
B = CA + FA = 135 + （—100） = 35
B + OR + Statistical discrepancy = 0
OR = —189
Increase in net holdings of official reserve asset
Debit
(-) Credit
(+) Balance
Goods 348 480 132
Services 354 346 -8
Income 153
Unilateral transfer 142 -142
Private capital flows 352 252 -100
OR 189 -189
Statistical discrepancy 154
4、For each case below, state whether the euro has appreciated or depreciated and give an example
of an event that could cause the change in the exchange rate.
a. The spot rate goes from 450 euros/Mexican peso to 440 euros/Mexican peso.
b. The spot rate goes from 0.011 Mexican pesos/euro to 0.006 Mexican pesos/euro.
c. The spot rate goes from 1.48 euros/British pound to 1.51 euros/British pound.
d. The spot rate goes from 0.73 British pounds/euro to 0.75 British pounds/euro.
A: indirect quotation, euro appreciated
B: direct quotation, euro depreciated
C: indirect quotation, euro depreciated
D: direct quotation, euro appreciated
5、What are the two forms of interbank foreign exchange trading? Compare and contrast
he similarities and differences of the two forms.
Form 1 Interbank trading is conducted directly between the traders at different banks
Form 2 Interbank trading are conducted through foreign exchange broker
Similarities: Both are making the foreign exchange trades.
Differences:
①Form1,the traders know to whom they are quoting exchange rates for possible。Form2,the
use of brokers provide anonymity to the traders until an exchange rate is agreed on for a
trade.
②Form2,the use of brokers can also allow the bank to economize on the costs of searching
for the best available exchange rates, because the broker’s business is to know the rates at 3 which various banks are willing to trade. Brokers earn commission for their services.
6. The spot exchange rate between the dollar and the Japanese yen is a floating rate. What
effects will the following events have on the exchange rate? In each case, draw a graph
to illustrate the changes in the foreign exchange market caused by the event.
a. Political unrest in Japan causes U.S. investors to shift their investments out of Japan.
b. There is a large increase in Japanese demand for U.S. investments because Japanese
investors believe that the U.S. economy is experiencing strong growth.
c. There is an increase in demand in the U.S. for Japanese exports as Japan becomes a
low-cost producer of electronic devices.
A: Selling Japanese to dollars → increase in supply of Japanese yen → shift the supply
curve → reduces the exchange rate value (＄/yen) of Japanese yen → so in a floating-rate
system shift the supply curve for yen to right and the demand curve remains unchanged →the dollar appreciates
B: Increase in supply of Japanese yen, because Japanese need to sell yens to get U.S. dollars
in the foreign exchange market and then use those dollars to make investment in the US
其余同part A
C: Demand for Japanese yen increase, because in most case, ten Japanese exports desire to
be paid in yens but the U.S. importer desires to pay in dollars , so somewhere in the payment
process dollars must be exchanged for yens
7、Assume that the spot exchange rate between the dollar and the Japanese yen is a fixed rate
within a narrow band around an announced rate. Assume that each of the following
scenarios will shift the intersection of private supply and demand outside the band.
What policy interventions are necessary by the monetary authorities in order to maintain S
S’
D
yen Exchange rate(＄/yen)
Exchange rate(＄/yen)
yen S
D D’