(单选题)Consider that Britain is trying to maintain a fixed exchange rate

1.Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. A fully sterilized intervention in the foreign exchange market by the British government is expected to cause: 选项： A、the British money supply to fall B、the British money supply to rise C、the British money supply to remain unchanged D、Britain to gain official international reserves

2.Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. If the British government intervenes in the foreign exchange market, then it can be inferred that 选项： A:Britain is financing a surplus in its overall balance of payments. B:the British money supply will rise. C:Britain is financing a deficit in its overall balance of payments. D:Britain is gaining official international reserves.

3.Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. If the British government intervenes in the foreign exchange market, then it can be inferred that( ) 选项： A:Britain is financing a surplus in its overall balance of payments. B:the British money supply will rise. C:Britain is financing a deficit in its overall balance of payments. D:Britain is gaining official international reserves.

4.Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. Which of the following interventions will stem the pressures for depreciation of the pound? ( ) 选项： A:The government of Britain should sell pounds and buy dollars. B:The government of Britain should do nothing as a fixed rate will not change. C:The government of Britain should buy pounds and sell dollars. D:The government of Britain should increase the country’s money supply.

5.Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. Which of the following interventions will stem the pressures for depreciation of the pound? 选项： A:The government of Britain should sell pounds and buy dollars. B:The government of Britain should do nothing, as a fixed rate cannot change. C:The government of Britain should buy pounds and sell dollars. D:The government of Britain should increase the country's money supply.

6.1Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S.dollar.However,the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S.dollar.Which of the following interventions will stem the pressures for depreciation of the pound?

7.Pressures in the foreign exchange market are such as to cause the Klokionian mark to depreciate with respect to the U.S. dollar. If Klokionia is trying to maintain a fixed exchange rate with respect to the U.S. dollar, which of the following interventions will stem the pressures for depreciation of the Klokionian mark? 选项： A:Klokionia should sell Klokionian marks and buy U.S. dollars.; B:Klokionia should fix its currency to gold.; C:Klokionia should buy Klokionian markets and sell U.S. dollars.; D:Klokionia does not need to intervene in the market since the exchange rate is fixed.

8.According to the IFE, if British interest rates exceed U.S. interest rates:选项： A:the British pound's value will remain constant.; B:the British pound will depreciate against the dollar.; C:the British inflation rate will decrease.; D:the forward rate of the British pound will contain a premium.; E:today's forward rate of the British pound will equal today's spot rate.

9.According to the IFE, if British interest rates exceed U.S. interest rates: 选项： A:the British pound's value will remain constant.; B:the British pound will depreciate against the dollar.; C:the British inflation rate will decrease.; D:the forward rate of the British pound will contain a premium.; E:today's forward rate of the British pound will equal today's spot rate.

10.Which of the following intervening ways of the central bank in the foreign exchange market are considered as‘indirect intervention’? （）选项：A、Interest rate B、Money supply C、Sterilized intervention Anticipatory

11.Which of the following intervening ways of the central bank in the foreign exchange market are considered as‘indirect intervention’? （）选项： A:Interest rate B:Money supply C:Sterilized intervention D:Anticipatory

12.Following an expansion of the money supply, a government committed to maintaining a fixed exchange rate must:（）选项： A:accept a surplus in its current account. B:not use sterilized intervention. C:increase its level of government expenditure and autonomous investments. D:intervene in the foreign exchange market to sell foreign currency and buy domestic currency.

13.Let the annual interest rate of the US dollar in the New York market be 8%, the annual interest rate of the British pound in the London market be 6%, the spot exchange rate in the New York foreign exchange market is 1 pound = 1.4725 / 1.4735 US dollars, and the premium of the British pound in 3 months is 30-50 points , answering the following questions:(1) What is the three-month forward exchange rate?(2) If an investor owns 100,000 pounds, invests in the New York market, and uses swap transactions to avoid foreign exchange risks, what should he do?(3) Comparing the investment scheme in question (2) with the situation of direct investment in the London market, which scheme is more profitable?

14.When the domestic currency is initially overvalued in a fixed exchange rate regime, the central bank must intervene in the foreign exchange market to ________ the domestic currency, thereby allowing the money supply to ________. 选项： A: purchase; B: sell; C: purchase; D: sell;

15.Suppose the exchange rate between the U.S. dollar and the Canadian dollar is 1.37 (C$/$), while the exchange rate for the British pound is 0.66 (£/$). What is the cross rate of Canadian dollars to the British pound (C$/£)? 选项：A、 2.08B、 1.37C、 0.66D、 0.48

16.If the price of British pounds in terms of the U.S. dollars is $1.80 per pound, then the price of U.S. dollars in terms of British pounds is( )选项： A:£1.80 per dollar. B:£0.555 per dollar. C:£0.90 per dollar. D:£3.60 per dollar.

17.To maintain a fixed exchange rate, a central bank facing BOP deficit can ( ) 选项： A:sell foreign currencies in the foreign exchange market B:purchase securities through open market operations C:reduce the interest rate at which it lends money to commercial banks D:all of the above

18.Under a floating exchange rate system, which one of the following should result in a depreciation of the British pound sterling? A. U.S. inflation declines relative to British inflation. B. U.S. income levels improve relative to the British. C. Decrease in outflows of British capital to the U.S. D. British interest rates rise relative to the U.S. rates.

19.Suppose the Japanese government pegs the yen to the U.S. dollar. What could the Japanese central bank do to prevent depreciation of the yen against the dollar in the foreign exchange market? ( )选项： A:It would lower interest rates to discourage exports to the United States. B:It would increase its official reserve holdings by buying dollars in the foreign exchange market. C:It would print new currency notes and exchange them for other currencies in the foreign exchange market. D:It would buy yen and sell dollars in the foreign exchange market.

20.(单选题)The figure below illustrates the market for British pounds. D£ and S£ are the nonofficial demand and supply curves of the British pounds, respectively.If the British government wants to peg the dollar per pound exchange rate at $2.50 per pound, what action would British monetary authorities have to undertake? 选项： A: Buy 1 million pounds and sell 1 million dollars B: Buy 1 million pounds and sell 2.5 million dollars C:Buy 6 million pounds and sell 12 million dollars D:Sell 1 million pounds and buy 2.5 million dollar