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.WORD格式整理....专业知识分享..INTERNATIONALFINANCEAssignmentProblems(3)Name:Student#:I.Choosethecorrectanswerforthefollowingquestions(onlyONEcorrectanswer)(2creditsforeachquestion,totalcredits2x25=50)1.InterbankquotationsthatincludetheUnitedStatesdollarsareconventionallygivenin__________,whichstatetheforeigncurrencypriceofoneU.S.dollar,suchasabidpriceofSFr0.85/$.A.indirectquoteB.directquoteC.AmericanquoteD.Europeanquote2.Thespotexchangeratepublishedinfinancialnewspapersisusuallythe__________.A.nominalexchangerateB.realexchangerateC.effectiveexchangerateD.equilibriumexchangerate3.Theforeignexchangereferstothe__________..WORD格式整理....专业知识分享..A.foreignbanknotesandcoinsB.demanddepositsinforeignbanksC.foreignsecuritiesthatcanbeeasilycashedD.alloftheabove4.Thefunctionsoftheforeignexchangemarketcomedownto__________.A.convertingthecurrencyofonecountryintothecurrencyofanotherB.providingsomeinsuranceagainsttheforeignexchangeriskC.makingtheforeignexchangespeculationeasyD.OnlyAandBaretrue.5.WhichofthefollowingisNOTtrueregardingtheforeignexchangemarket?A.Itistheplacethroughwhichpeopleexchangeonecurrencyforanother.B.Theexchangeratenowadaysismainlydeterminedbythemarketforces.C.Mostforeignexchangetransactionsarephysicallycompletedinthismarket.D.Alloftheabovearetrue.6.Theworldlargestforeignexchangemarketsare__________respectively..WORD格式整理....专业知识分享..A.London,NewYorkandTokyoB.London,ParisandFrankfurtC.London,HongKongandSingaporeD.London,ZurichandBahrain7.TheforeignexchangemarketisNOTefficientbecause__________.A.monetaryauthoritiesdominatetheforeignexchangemarketandeverybodyknowsthatbydefinition,centralbanksareinefficientB.commercialbanksandotherparticipantsofthemarketdonotcompetewithoneanotherduetothefactthattransactiontakesplacearoundtheworldandnotinasinglecentralizedlocationC.foreignexchangedealershavedifferentpricessuchasbidandaskpricesD.Noneofthereasonslistedarecorrectbecausetheforeignexchangemarketisanefficientmarket8.__________earnaprofitbyabid-askspreadoncurrenciestheybuyandsell.__________ontheotherhand,earnaprofitbybringingtogetherbuyersandsellersofforeignexchangesandearningacommissiononeachsaleandpurchase.A.Foreignexchangebrokers;foreignexchangedealersB.Foreignexchangedealers;foreignexchangebrokersC.arbitragers;speculators.WORD格式整理....专业知识分享..D.commercialbanks;centralbanks9.MostforeignexchangetransactionsarethroughtheU.S.dollars.Ifthetransactionisexpressedasthecurrenciesperdollar,thisisknownas__________whereas__________areexpressedasdollarspercurrency.A.directquote;indirectquoteB.indirectquote;directquoteC.Europeanquote;AmericanquoteD.Americanquote,Europeanquote10.FromtheviewpointofaJapaneseinvestor,whichofthefollowingwouldbeadirectquote?A.SFr1.25/€B.$1.55/₤C.¥110/€D.€0.0091/¥11.Whichofthefollowingistrueabouttheforeignexchangemarket?A.Itisaglobalnetworkofbanks,brokers,andforeignexchangedealersconnectedbyelectroniccommunicationssystem.B.Theforeignexchangemarketisusuallylocatedinaparticularplace.C.Theforeignexchangeratesareusuallydeterminedbytherelated.WORD格式整理....专业知识分享..monetaryauthorities.D.Themainparticipantsinthismarketarecurrencyspeculatorsfromdifferentcountries.12.Theextenttowhichtheincomefromindividualtransactionsisaffectedbyfluctuationsinforeignexchangevaluesisconsideredtobe_________.A.TranslationexposureB.economicexposureC.transactionexposureD.accountingexposure13.Whichofthefollowingexchangeratesisadjustedforpricechanges?A.nominalexchangerateB.realexchangerateC.effectiveexchangerateD.equilibriumexchangerate14.SupposetheexchangerateoftheRMBversusU.S.dollaris¥6.8523/$now.IftheRMBweretoundergoa10%depreciation,thenewexchangerateintermsof¥/$wouldbe:A.6.1671B.7.5375C.6.9238D.7.6135.WORD格式整理....专业知识分享..15.AtleastinaU.S.MNC’sfinancialaccountingstatement,ifthevalueoftheeurodepreciatesrapidlyagainstthatofthedollaroverayear,thiswouldreducethedollarvalueoftheeuroprofitmadebytheEuropeansubsidiary.Thisisatypical__________.A.transactionexposureB.translationexposureC.economicexposureD.operatingexposure16.AJapanese-basedfirmexpectstoreceivepound-paymentin6months.Thecompanyhasa(an)__________.A.economicexposureB.accountingexposureC.longpositioninsterlingD.shortpositioninsterling17TheexposuretoforeignexchangeriskknownasTranslationExposuremaybedefinedas__________.A.changeinreportedowner’sequityinconsolidatedfinancialstatementscausedbyachangeinexchangeratesB.theimpactofsettlingoutstandingobligationsenteredintobefore.WORD格式整理....专业知识分享..changeinexchangeratesbuttobesettledafterchangeinexchangeratesC.thechangeinexpectedfuturecashflowsarisingfromanunexpectedchangeinexchangeratesD.Alloftheabove18Whenafirmdealswithforeigntradeorinvestment,itusuallyhasforeignexchangeriskexposure.SoifanAmericanfirmexpectstoreceiveadollar-paymentfromaChinesecompanyinthenext30days,theU.S.firmhasthepossible__________.A.economicexposureB.transactionexposureC.translationexposureD.noneoftheabove19.Inordertoavoidthepossiblelossbecauseoftheexchangeratefluctuations,afirmthathasa__________positioninforeignexchangescan__________thatpositionintheforwardmarket.A.short;sellB.l