Tổng Hợp Câu Hỏi Tài Chính Quốc Tế

Under pure floating exchange rate regime,

• The sum of the current account and the capital amount balance is 0.

• The sum of the current account, the capital account and the official reserve account balance equals 0.

• The current account, the capital account, the official reserve account and the statistical discrepancy balance out to zero.

• All above statements are correct.

Which of the following statements about Marshall-Lerner condition is NOT correct?

• Devaluation of the currency reduces the current account deficit or may deteriorate further the current account.

• The effect of the currency devaluation on the balance of payments depends on the volume effect and price effect.

• The effect of the currency revaluation on the balance of payments doesn't depend on the volume effect and price effect.

• The effect of the currency revaluation on the balance of payments depends on the volume effect and price effect.

The J-curve effect implies that following a currency depreciation, a country's trade balance:

• improves before it worsens.

• worsens before it improves.

• continually worsens.

• continually improves.

The 'volume effect' is:

• The effect of a change in exchange rate on imports and exports.

• The effect of a change in tariffs on the volume of foreign trade.

• The effect of a change in disposable income on imports and exports.

• None of the above.

The current account includes:

• the export and import of goods and services.

• all purchases and sales of assets such as stocks, bonds, bank accounts, real estate, and businesses.

• all purchases and sales of international reserve assets such as dollars, foreign exchanges, gold, and special drawing rights (SDRs).

• none of the above.

The capital account includes:

• the export and import of goods and services.

• all purchases and sales of assets such as stocks, bonds, bank accounts, real estate, and businesses.

• all purchases and sales of international reserve assets such as dollars, foreign exchanges, gold, and special drawing rights (SDRs).

• none of the above.

In 2007 the United States had a current account deficit. The current account deficit implies that the United States:

• had a surplus on legal consulting and engineering services.

• produced more output than it consumed.

• consumed more output than it produced

• none of the above.

The 'J-curve effect' shows:

• the initial deterioration and the eventual improvement of a country's trade balance following a currency depreciation.

• the initial improvement and the eventual depreciation of a country's trade balance following a currency depreciation.

• the trade balance's lack of responsiveness to the exchange.

A currency depreciation will begin to improve the trade balance immediately:

• if the demand for imports and exports are inelastic.

• if the demand for imports and exports are elastic.

• if imports decrease and exports decrease.

• None of the above.

A depreciation will begin to improve the trade balance immediately if:

• imports and exports are responsive to the exchange rate changes.

• imports and exports are inelastic to the exchange rate changes.

• consumers exhibit brand loyalty and price inelasticity.

• All of the above.