Suppose the Japanese government pegs the yen to the U.S. dollar. What

1.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.

2.Other things remaining unchanged, if American exports to Japan increase and American imports from Japan decrease, then under a floating exchange-rate system, we would expect 选项： A: the U.S. dollar to appreciate. B: the yen value of a U.S. dollar to be higher in Tokyo than in New York. C: the demand for Japanese yen to increase in the foreign exchange market. D: the supply curve of Japanese yen to shift inward.

3.(单选题) Other things remaining unchanged, if American exports to Japan increase and American imports from Japan decrease, then under a floating exchange-rate system, we would expect 选项： A: the supply curve of Japanese yen to shift inward. B: the yen value of a U.S. dollar to be higher in Tokyo than in New York. C: the demand for Japanese yen to increase in the foreign exchange market. D: the U.S. dollar to appreciate.

4.Consider covered investments between the United States and Japan. If Japanese interest rates decrease, interest arbitrage operations will most likely result in a(n) : ( )选项： A:increase in the spot exchange price of the yen. B:increase in the forward exchange price of the dollar. C:sale of dollars in the forward market. D:purchase of yen in the spot market.

5.Which of the following is true of foreign exchange markets? 选项： A:The foreign exchange market is a single gathering place where traders shout buy-and-sell orders at each other. B:Individuals' exchanges of currencies comprise the largest portion of overall foreign exchange trading. C:The laws of demand and supply are not applicable in a foreign exchange market. D:Most foreign exchange trading involves the exchange of U.S. dollars for other currencies.

6.Which of the following is true of foreign exchange markets?（8.0分）选项： A:The foreign exchange market is a single gathering place where traders shout buy-and-sell orders at each other. B:Individuals' exchanges of currencies comprise the largest portion of overall foreign exchange trading. C:The laws of demand and supply are not applicable in a foreign exchange market. D:Most foreign exchange trading involves the exchange of U.S. dollars for other currencies.

7.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.

8.If a country's currency is a reserve currency, then other countries can readily defend their fixed exchange rates with this country's currency without resorting to official intervention in the foreign exchange market. 选项： A:正确 B:错误

9.Rapid increases in the U.S. exports of goods and services will result in a(n、 ________ foreign currency and a(n、 ________ U.S. dollars in the foreign exchange market. 选项： A: increase in the demand for; increase in the supply of B: increase in the supply of; increase in the demand for C: shortage of foreign currency; surplus of D: decrease in the supply of; decrease in the demand for

10.In the foreign exchange market, what could be a possible consequence of an increase in the purchase of stocks of Toyota, a Japanese automobile firm, by the U.S. residents?( )选项： A:Demand for dollar will increase B:Yen will depreciate C:Dollar will depreciate D:Supply curve for dollar will shift to the left

11.According to the theory of interest rate parity, the relationship between interest rate and exchange rate is as follows: the currencies of countries with high interest rates rise in the forward foreign exchange market, while the currencies of countries with low interest rates discount in the forward foreign exchange market.选项： A:正确; B:错误

12.Under which of the following policies does the government enter the foreign exchange market and buy or sell foreign currency in order to influence the market-determined exchange rate of the domestic currency? 选项： A:exchange controls; B:capital controls; C:official interventions; D:adjustable pegs

13.As the value of the yen falls relative to the U.S. dollar in the foreign exchange market: 选项： A、apanese goods become more expensive to the U.consumers B、the supply of dollars will fall C、the demand for Japanese goods will increase in the U.market D、U.goods become less expensive to Japanese consumers

14.An increase in capital inflows in the United States will result in a(n) ________ foreign currency and a(n) ________ U.S. dollars in the foreign exchange market.（8.0分）选项： A:increase in the demand for; increase in the supply of B:increase in the supply of; increase in the demand for C:shortage of foreign currency; surplus of D:decrease in the supply of; decrease in the demand for

15.Under which of the following policies does the government enter the foreign exchange market and buy or sell foreign currency in order to influence the market-determined exchange rate of the domestic currency? 选项：A:exchange controls B:adjustable pegs C:official interventions D:capital controls

16.As the value of the yen falls relative to the U.S. dollar in the foreign exchange market( )选项： A:Japanese goods become more expensive to the U.S. consumers. B:the supply of dollars will fall. C:the demand for Japanese goods will increase in the U.S. market D:U.S. goods become less expensive to Japanese consumers.

17.The real exchange rate: 选项： A:measures how many Japanese yen you can get for one U.S. dollar. B:is equal to the nominal exchange rate (measured in units of the foreign currency divided by units of home currency) multiplied by the domestic price level divided by the foreign price level. C:is equal to the nominal exchange rate (measured in units of the foreign currency divided by units of home currency) multiplied by the foreign price level divided by the domestic price level. D:is the price of a domestic car divided by the price of a foreign car.

18.Suppose that the United States eliminates its tariff on steel imports, permitting foreign-produced steel to enter the U.S. market. Steel prices to U.S. consumers would be expected to: 选项： A:Increase, and the foreign demand for U.S. exports would increase B:Decrease, and the foreign demand for U.S. exports would increase C:Increase, and the foreign demand for U.S. exports would decrease D:Decrease, and the foreign demand for U.S. exports would decrease

19.Suppose that the United States eliminates its tariff on steel imports, permitting foreign-produced steel to enter the U.S. market. Steel prices to U.S. consumers would be expected to:（）选项： A:Increase, and the foreign demand for U.S. exports would increase B:Decrease, and the foreign demand for U.S. exports would increase C:Increase, and the foreign demand for U.S. exports would decrease D:Decrease, and the foreign demand for U.S. exports would decrease

20.Suppose that the United States eliminates its tariff on steel imports, permitting foreign-produced steel to enter the U.S. market. Steel prices to U.S. consumers would be expected to:（）选项： A:Increase, and the foreign demand for U.S. exports would increase B:Increase, and the foreign demand for U.S. exports would decrease C:Decrease, and the foreign demand for U.S. exports would increase D:Decrease, and the foreign demand for U.S. exports would decrease

21.[单选题]9) How is the AA schedule derived? A It is derived by the schedule of interest rate and output combinations that are consistent with equilibrium in the domestic money market and the foreign exchange market. B It is derived by the schedule of exchange rate and output combinations that are consistent with equilibrium in the foreign money market and the domestic exchange market. C It is derived by the schedule of exchange rate and output combinations that are consistent with equilibrium in the domestic money market and the foreign exchange market. D It is derived by the schedule of exchange rate and output combinations that are consistent with equilibrium in the domestic bond market and the foreign asset market. E It is derived by the schedule of exchange rate and output combinations that are greater than equilibrium in the foreign money market and the domestic exchange market.

22.Assume a Japanese firm invoices exports to the United States in U.S. dollars. Assume that the forward rate and spot rate of the Japanese yen are equal. If the Japanese firm expects the U.S. dollar to ____ against the yen, it would likely wish to hedge. It could hedge by ____ dollars forward. 选项： A:depreciate; buying; B:depreciate; selling; C:appreciate; selling; D:appreciate; buying

23.Assume a Japanese firm invoices exports to the United States in U.S. dollars. Assume that the forward rate and spot rate of the Japanese yen are equal. If the Japanese firm expects the U.S. dollar to ____ against the yen, it would likely wish to hedge. It could hedge by ____ dollars forward.选项： A:depreciate; buying; B:depreciate; selling; C:appreciate; selling; D:appreciate; buying

24.Suppose the exchange rate between the Japanese yen and the U.S. dollar is 100 yen per dollar. A Japanese stereo with a price of 60,000 yen will cost:选项： A:$60; B:$600; C:$6000; D:None of the above