Consider that Britain is trying to maintain a fixed exchange rate with

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. 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.

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. 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.

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.

5.1Consider 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?

6.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?想想英国正试图保持对美元的固定汇率。然而，目前外汇市场的形势有利于英镑相对于美元贬值。以下哪项干预措施将遏制英镑贬值的压力？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.

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.In a floating exchange rate system, the dollar per pound exchange rate is determined by: 选项： A、the American government B、the British government C、the interaction of the demand and supply of pounds in the foreign exchange market D、the interaction of the demand for and supply of dollar-denominated assets in the stock market

9.The current exchange rate is 1.59 U.S. dollars per British pound. If a retailer in Great Britain were to quote the exchange rate using the direct method, he would say: 选项： A:1 British pound is equal to 1.59 U.S. dollars. B:1 U.S. dollar is equal to 1.59 British pounds. C:0.63 British pounds are equal to 1 U.S. dollar. D:0.63 U.S. dollars are equal to 1 British pound

10.The descriptions about exchange rate are true, except _____ 选项： A、Free floating exchange rate is determined by market forces B、fixed exchange rate is set by government intervention through buying and selling domestic currencies C、A currency depreciates if it falls in value on the foreign exchange market D、A currency appreciates if it rises in value on the foreign exchange market.

11.To force the value of the British pound to depreciate against the dollar, the Federal Reserve should:选项： A:sell dollars for pounds in the foreign exchange market and the Bank of England should sell dollars for pounds in the foreign exchange market.; B:sell pounds for dollars in the foreign exchange market and the Bank of England should sell dollars for pounds in the foreign exchange market.; C:sell pounds for dollars in the foreign exchange market and the Bank of England should sell pounds for dollars in the foreign exchange market.; D:sell dollars for pounds in the foreign exchange market and the Bank of England should sell pounds for dollars in the foreign exchange market.

12.In a floating exchange rate system, the dollar per pound exchange rate is determined by( )选项： A:the American government. B:the British government. C:the interaction of the demand and supply of pounds in the foreign exchange market. D:the interaction of the demand for and supply of dollar-denominated assets in the stock market.

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.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?

15.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.

16.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

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

18.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

19.Suppose that U.S. prices rise 4 percent over the next year while prices in Mexico rise 6 percent. According to the purchasing power parity theory of exchange rates, which of the following should happen?( )选项： A:The dollar will depreciate B:The peso will be worth 1.5 dollars in the foreign exchange market C:The peso will depreciate D:The dollar will be worth 1.5 pesos in the foreign exchange market

20.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.