Q6. How would an unanticipated shift to a more expansionary monetary policy in the
Demand forForeign Currencies Foreign ExchangeValue of the Dollar
A) Increase No change
B) No change Decrease
C) Increase Decrease
Q7. If the domestic inflation rate is lower than the foreign rate of inflation:
A) the domestic currency will depreciate relative to the foreign currency.
B) the domestic currency will appreciate relative to the foreign currency.
C) the foreign currency will appreciate relative to the domestic currency.
Q8. An analyst has the following expectations for three economies over the coming year:
| |||
Income growth rate | 3% | 5% | 3% |
Inflation rate | 2% | 2% | 5% |
Domestic real interest rate | 4% | 3% | 4% |
Based on these forecasts, how should the analyst predict the currency of
Dacia/Epirus Dacia/Noricum
A) Depreciate Appreciate
B) Appreciate Depreciate
C) Appreciate Appreciate
Q9. Which of the following would be most likely to cause a nation’s currency to depreciate?
A) Slow growth of income relative to one’s trading partners.
B) Domestic real interest rates that are lower than those of other countries.
C) A rate of inflation that is lower than that of one’s trading partners.
答案和详解如下：
Q6. How would an unanticipated shift to a more expansionary monetary policy in the
Demand forForeign Currencies Foreign ExchangeValue of the Dollar
A) Increase No change
B) No change Decrease
C) Increase Decrease
Correct answer is C) I
An unanticipated shift to an expansionary monetary policy will lead to higher income, an accelerated inflation rate, and lower real interest rates. The higher income and higher domestic prices stimulate imports and discourage exports causing the current account balance to move toward deficit.
Q7. If the domestic inflation rate is lower than the foreign rate of inflation:
A) the domestic currency will depreciate relative to the foreign currency.
B) the domestic currency will appreciate relative to the foreign currency.
C) the foreign currency will appreciate relative to the domestic currency.
Correct answer is B)
If a nation's trading partners prices are increasing twice as fast as the domestic country A, then foreign citizens will increase their demand for A's goods. This increased demand will cause country A's currency to appreciate making country A's goods more expensive offsetting the effects of inflation differences.
Q8. An analyst has the following expectations for three economies over the coming year:
| |||
Income growth rate | 3% | 5% | 3% |
Inflation rate | 2% | 2% | 5% |
Domestic real interest rate | 4% | 3% | 4% |
Based on these forecasts, how should the analyst predict the currency of
Dacia/Epirus Dacia/Noricum
A) Depreciate Appreciate
B) Appreciate Depreciate
C) Appreciate Appreciate
Correct answer is C)
Lower income growth, lower inflation, and a higher domestic real interest rate are factors that should cause a currency to appreciate.
Q9. Which of the following would be most likely to cause a nation’s currency to depreciate?
A) Slow growth of income relative to one’s trading partners.
B) Domestic real interest rates that are lower than those of other countries.
C) A rate of inflation that is lower than that of one’s trading partners.
Correct answer is B)
Three major factors cause a country’s currency to appreciate or depreciate:
1. The growth rate of income relative to trading partners (high growth → depreciation).
2. The rate of inflation relative to trading partners (high inflation → depreciation).
3. Domestic real interest rates relative to those of other countries (low real rates → depreciation).
'
lll
| 欢迎光临 CFA论坛 (http://forum.theanalystspace.com/) | Powered by Discuz! 7.2 |