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Quiz về Tài chính quốc tế

Total questions: 136

Worksheet time: 1hrs 21mins

Name
Class
Date
1.

What is international finance?

a)

A part of international economics

b)

A part of the capital market

c)

A pure subject

d)

A part of the foreign exchange market

2.

What are the characteristics of international finance?

a)

Exchange rate risk and political risk; The international environment opens up many opportunities and market imperfections

b)

Exchange rate risk and political risk; Market imperfections

c)

The international environment opens up many opportunities; Market imperfections

d)

Exchange rate risk and political risk; The international environment opens up many opportunities

3.

In the development process, what is the primitive form of international finance?

a)

International credit, import-export taxes,…

b)

International financial cooperation

c)

Trade in goods, tribute of gold, silver, and jewels

d)

Indirect investment, non-repayable international aid

4.

What is the effectiveness of international finance with capital flows between countries?

a)

Creates opportunities to diversify investment risks

b)

Allocates capital more efficiently on an international scale

c)

Creates opportunities to diversify investment risks and allocates capital more efficiently on an international scale

d)

Allocates capital more efficiently on a national scale

5.

Which component does not belong to the source of international finance formation?

a)

Revenue and expenditure from international economic relations

b)

Revenue and expenditure from international credit relations

c)

Revenue and expenditure from non-repayable international aid

d)

Issuing government bonds

6.

What are the advantages of international finance?

a)

Independent market

b)

Free market

c)

Easy access to the market

d)

The international environment opens up many opportunities

7.

What is the role of international finance?

a)

Facilitates integration into the global economy

b)

Opens up opportunities for socio-economic development

c)

Creates conditions for economic growth

8.

What is the role of international finance?

a)

Create conditions for integration into the world economy

b)

Open up opportunities for socio-economic development

c)

Create conditions for integration into the world economy; Open up opportunities for socio-economic development and enhance the efficiency of financial resource utilization

d)

Enhance the efficiency of financial resource utilization

9.

What does international finance originate from?

a)

International trade

b)

Exports

c)

Imports

d)

Domestic trade

10.

What does international finance develop based on?

a)

Cooperation between countries in economic, cultural, political, social aspects and the trend of opening up, integration, and globalization

b)

The movement of capital between countries in the world and the trend of opening up, integration, and globalization

c)

The trend of opening up, integration, and globalization

d)

Cooperation between countries in economic, cultural, political, social aspects; The trend of opening up, integration, and globalization and the movement of capital between countries

11.

What is the international investment relationship of international finance?

a)

Foreign direct investment

b)

Foreign indirect investment

c)

Foreign direct investment and foreign indirect investment

d)

Domestic investment

12.

What are the basic principles of international economic relations and international finance?

a)

Voluntary, equality, respect for each other's territorial sovereignty

b)

Equality, mutual benefit, respect for each other's territorial independence

c)

Equality, respect for each other's territorial sovereignty, mutual benefit

d)

Voluntary, equality, respect for each other's territorial independence, mutual benefit

13.

What does international finance study?

a)

Exchange rates

b)

International investment

c)

Exchange rates, international investment, international financial institutions

d)

International financial institutions

14.

What does the internationalization in international finance stem from?

4 lines
15.

Internationalization in International Finance originates from economic phenomena:

a)

The development of multinational companies; The capital market is increasingly developed and expanded

b)

Cooperation and deep integration in the field of economy, finance, and banking

c)

The capital market is increasingly developed and expanded

d)

The development of multinational companies; Cooperation and deep integration in the field of economy, finance, and banking; The capital market is increasingly developed and expanded

16.

International non-refundable aid includes:

a)

Bilateral aid, multilateral aid, non-governmental aid

b)

Bilateral aid, multilateral aid

c)

Non-governmental aid

d)

Two-way aid between the donor country and the recipient country

17.

Which of the following statements about the characteristics of international finance is false:

a)

International financial activities are linked to the implementation of the economic and political goals of the state

b)

International finance is not influenced by the economic and political factors of each country

c)

The movement of financial resources is related to the establishment and use of foreign currency funds of many countries

d)

International finance is a part of international economic relations

18.

International financial activities are related to:

a)

A distributing entity of a country

b)

Many distributing entities in many countries

c)

Many distributing entities in many stages of the global financial system

d)

Many stages in the financial system

19.

Thanks to international financial relations, countries can:

a)

Exploit only one financial resource from abroad

b)

Maximize their comparative advantage and exploit the comparative advantages of other countries

c)

Limit foreign investment activities

d)

Limit foreign borrowing

20.

Which function reflects money's role as an intermediary in international transactions?

a)

Payment medium function

b)

World currency function

c)

Circulation medium function

d)

Stored value function

21.

The relationships ... reflect the internal and external policies of the state.

a)

Finance

b)

International trade

c)

International finance

d)

International credit

22.

International finance is a field that includes:

a)

Micro international finance and macro international finance

b)

Macro international finance

c)

Micro international finance

d)

International trade

23.

International finance is a field of activity:

a)

Between 2 countries

b)

Involving many countries

c)

Arising within the national scope

d)

Large and related to many countries

24.

The characteristics of the risks of international finance are reflected in:

a)

Exchange rate risk, liquidity risk

b)

Exchange rate risk, political risk, global economic environment risk

c)

Global economic environment risk, credit risk

d)

Political risk, credit risk

25.

International finance is influenced by:

a)

Many political factors

b)

Many legal systems

c)

Domestic legal system

d)

Many political factors and legal systems

26.

International finance is formed based on:

a)

International relationships

b)

Globalization and regionalization trends

c)

International relationships and the world currency function of money

d)

The world currency function of money

27.

Which statement is accurate?

a)

Domestic financial activities occur on a broader scale than international finance

b)

Entities participating in international financial activities do not participate in domestic activities

28.

Which of the following statements is accurate?

a)

Domestic financial activities occur on a broader scale than international finance.

b)

Entities participating in international finance do not engage in domestic financial activities.

c)

Entities participating in international finance face more risks than those participating in domestic finance.

d)

International finance undermines domestic financial activities.

29.

Which international financial activity is associated with the movement of investment capital from one country to another?

a)

International investment

b)

Basic construction investment

c)

Domestic securities trading

d)

Electronic payment

30.

Developing countries often perceive international finance as the financial activities of:

a)

Multinational corporations

b)

Entities of the country with the rest of the world

c)

International organizations

d)

Multinational corporations, entities of the country with the rest of the world, and international organizations

31.

The activity of borrowing and lending between entities from different countries is known as:

a)

International securities

b)

Direct investment

c)

International credit

d)

Indirect investment

32.

International resources are understood as:

a)

Financial resources

b)

Technology, techniques

c)

Labor

d)

Financial resources, technology, techniques, labor

33.

The first international financial activity associated with the exchange of goods between countries is:

a)

International credit

b)

International payment

c)

International investment

d)

International tourism

34.

Which of the following does NOT give rise to international finance?

a)

Self-sufficient production

b)

International financing

c)

International investment

d)

International trade

35.

International finance studies:

a)

Exchange rates

b)

International investment

c)

Exchange rates, international investment, international financial institutions

d)

International financial institutions

36.

During the gold standard period:

4 lines
37.

What is the exchange rate?

a)

Exchange rate

b)

International investment

c)

Exchange rate, international investment, international financial institutions

d)

International financial institutions

38.

During the gold standard period:

a)

The fixed exchange rate system is determined based on the 'gold parity'

b)

Trade between countries is encouraged

c)

The central bank can completely determine the money supply

d)

The fixed exchange rate system is determined based on the 'gold parity' and trade between countries is encouraged

39.

What is the SDR currency?

a)

National currency

b)

International currency

c)

World currency

d)

Weak currency

40.

In the Bimetallism system (before 1875), the phenomenon appeared:

a)

Good money will drive bad money out of circulation

b)

Bad money will drive good money out of circulation

c)

Gold money will drive silver money out of circulation

d)

Silver money will drive paper money out of circulation

41.

IMF is a financial organization:

a)

Regional multilateral

b)

Of a country

c)

Global multilateral

d)

Of Asia

42.

The summary table of all economic transactions between residents and non-residents is called:

a)

Trade balance

b)

International payment balance

c)

Service balance

d)

Capital balance

43.

The capital balance is denoted as:

a)

K

b)

CA

c)

OB

d)

OFB

44.

The report reflecting the total value of transactions on goods trade, services, income, and one-way current transfer is called:

a)

Trade balance

b)

Capital balance

c)

Current balance

d)

Overall balance

45.

Import and export activities are reflected in:

a)

Trade balance

b)

Income balance

c)

One-way current transfer

d)

Service balance

46.

Reflected in the international payment balance are monetary transactions between:

a)

Residents with each other

b)

Residents and non-residents

c)

Non-residents with each other

d)

Unknown residents

47.

Reflecting on the international balance of payments are currency transactions between:

a)

Residents with each other

b)

Residents and non-residents

c)

Non-residents with each other

d)

Foreigners living in the host country

48.

The US embassy in Vietnam is:

a)

A resident of the US

b)

A resident of Vietnam

c)

Both a resident of the US and a resident of Vietnam

d)

Not a resident of any country

49.

A Vietnamese student studying abroad for 3 years in the US is:

a)

A resident of the US

b)

A resident of Vietnam

c)

Both a resident of the US and a resident of Vietnam

d)

Not a resident of any country

50.

The value of imported goods is reflected in:

a)

Trade balance

b)

Service balance

c)

Income balance

d)

One-way current transfer balance

51.

The current account and capital account are the most focused parts of:

a)

Balance of payments

b)

Service balance

c)

Trade balance

d)

Trade balance

52.

A trade deficit occurs when:

a)

Exports are greater than imports

b)

Exports are less than imports

c)

Trade balance

d)

Exports and imports are balanced

53.

Gifts or aid from the government and private individuals are reflected in:

a)

Service balance

b)

Balance of payments

c)

Current account

d)

Payment account

54.

Vietnamese tourists spending in Singapore will:

a)

Reduce Vietnam's current account balance

b)

Increase Vietnam's current account balance

c)

Not change Vietnam's current account balance

d)

Reduce Singapore's current account balance

55.

The pegged exchange rate is another name for:

a)

Fixed exchange rate

b)

Adjustable exchange rate

c)

Exchange rate

d)

Non-fixed exchange rate

56.

Factors that increase demand for foreign currency in the foreign exchange market are:

4 lines
57.

What are the factors that increase the demand for foreign currency in the foreign exchange market?

a)

Increase import turnover

b)

Increase export turnover

c)

Increase foreign borrowing

d)

Decrease foreign investment

58.

What currency is used in a fixed exchange rate regime?

a)

Freely convertible currency

b)

Floating currency

c)

Fixed currency

d)

Non-fixed currency

59.

What is understood by the exchange rate?

a)

The currency unit of this country expresses the amount of another currency

b)

Expresses the comparative relationship between the total amount of 2 currencies of 2 countries with each other

c)

Expresses the comparative relationship in the market between the economic strength of 2 countries with each other

d)

The price of 1 unit of currency of this country expresses the amount of units of currency of another country

60.

What are the factors that increase the supply of foreign currency in the foreign exchange market?

a)

Increase export turnover

b)

Increase import turnover

c)

Decrease import turnover

d)

Decrease foreign borrowing

61.

When a country raises the value of its currency, what effect will it have?

a)

Encourage exports

b)

Encourage imports

c)

Encourage tourism into the country

d)

Encourage capital inflow

62.

What is a regulated floating exchange rate regime?

a)

An exchange rate regime that lies between two regimes of floating and fixed

b)

An exchange rate regime that lies between two regimes of floating and non-fixed

c)

An exchange rate regime that lies between two regimes of floating and regulated

d)

An exchange rate regime that lies between two regimes of floating and unregulated

63.

What is the quoted currency?

a)

The currency that expresses its value through another currency

b)

The currency used to determine the value of another currency.

c)

The domestic currency of the quoted country

d)

The foreign currency used to determine the value of the domestic currency of the quoted country

64.

What is the quoted currency?

a)

It is the currency used to determine the value of another currency.

b)

It is the domestic currency of the quoted country.

c)

It is the foreign currency used to determine the value of the domestic currency of the quoted country.

65.

What is the quoted currency?

a)

The currency taken as a standard with a unit of measure as a whole unit.

b)

Standing in the position of currency.

c)

Representing the price of the standard currency.

d)

The currency taken as a standard with a unit of measure as a positive unit.

66.

What is direct exchange rate quotation?

a)

Taking the domestic currency as the quoted currency.

b)

Fixing USD as the quoted currency.

c)

Taking foreign currency as the quoted currency and domestic currency as the base currency.

d)

Taking foreign currency as the base currency.

67.

Which currency's exchange rate policy is currently the most important in Vietnam?

a)

USD

b)

EUR

c)

GBP

d)

JPY

68.

What is the purpose of the central bank participating in the foreign exchange market?

a)

To conduct profitable business.

b)

To provide international payment services.

c)

To regulate the market.

d)

To fulfill trade commitments.

69.

Who are the participants in FX?

a)

Countries.

b)

International financial organizations, commercial banks.

c)

Central banks, commercial banks.

d)

Credit institutions, investors, economic organizations, central banks.

70.

Where are spot and forward transactions conducted?

a)

Spot market.

b)

Centralized market.

c)

Forward market.

d)

Decentralized market.

71.

What does the indirect exchange rate quotation indicate?

a)

How many units of currency you need to exchange for 1 USD.

b)

The value of one unit of foreign currency in USD.

c)

How many units of foreign currency are needed to obtain 1 unit of domestic currency.

d)

How many units of domestic currency you need to exchange for 1 unit of foreign currency.

72.

What are the characteristics of the futures trading market?

a)

Exchange rates are formed according to the market.

b)

Exchange rates are managed by the government.

c)

Exchange rates are managed by the central bank.

d)

It takes place at the foreign exchange trading floor, and futures contracts are calculated daily based on market prices.

73.

What is formed according to the market?

a)

Exchange rate according to government management

b)

Exchange rate according to central bank management

c)

Takes place at the foreign exchange trading floor, futures contracts are calculated daily at market prices (marking to market)

74.

What is the execution period of a forward contract?

a)

90 days

b)

60 days

c)

1 year

d)

Any day depending on the agreement of the parties involved in the contract

75.

What is the center of FX?

a)

Interbank

b)

Bank - Customer

c)

Non - interbank

d)

Customer - Customer

76.

The foreign exchange market is where?

a)

Buying and selling shares and bonds denominated in foreign currency

b)

Trading instruments denominated in foreign currency

c)

Trading precious metals

d)

Buying and selling currencies of different countries

77.

What is a characteristic of the foreign exchange market?

a)

Foreign currency trading takes place 24/7

b)

Regional nature

c)

Activities within the national scope

d)

Buying and selling gold at international standards

78.

What is a Swap transaction?

a)

Buying a certain currency

b)

Selling a certain currency

c)

Simultaneously buying and selling a certain currency with the same amount of currency where the buying and selling value dates are different

d)

Simultaneously buying and selling a certain currency where the buying and selling value dates are the same

79.

The buyer of a currency option has the right to?

a)

Sell a call option

b)

Sell a put option

c)

Have the right but not the obligation to sell a certain currency

d)

Buy the right to sell a certain currency

80.

What is a call option?

a)

The buyer of a call option has the right but not the obligation to buy a certain amount of foreign currency at a specified price and time

b)

Buy a certain amount of foreign currency at a specified price and time

c)

Buy a certain amount of foreign currency but must fulfill the obligation

81.

A company imports and exports to commercial bank A to buy 3 million USD and completes the payment after 3 months, the exchange rate is determined as 1USD = 24,200 VND. What is this an example of?

a)

Forward transaction

b)

Future transaction

c)

Spot transaction

d)

Option transaction

82.

What is a put option?

a)

The buyer of the contract has the right to sell a certain amount of foreign currency

b)

The buyer of the contract has the right to buy back a certain amount of foreign currency

c)

The buyer of the put option has the right but not the obligation to sell a certain amount of foreign currency at the agreed price on the delivery date

d)

The buyer of the contract has the obligation to sell a certain amount of foreign currency

83.

A company imports and exports signs a contract to buy 5 million USD with the bank and completes payment after 2 working days. What is this an example of?

a)

Spot transaction

b)

Future transaction

c)

Forward transaction

d)

Option transaction

84.

Which contract is a financial instrument that gives its owner the right to buy or sell but is not obligated to execute a certain amount of currency at a specified exchange rate at or until a certain point in the future?

a)

Swap contract

b)

Future contract

c)

Option contract

d)

Spot contract

85.

The operations of the foreign exchange market include:

a)

Buying and selling USD

b)

Medium-term currency transactions

c)

Long-term currency transactions

d)

Buying and selling spot, future currency transactions, forward transactions, swap operations, option operations

86.

A company imports and exports signs a contract consisting of two parts: buying 8 million USD today and selling 8 million USD after 3 months. This is an example of:

a)

Foreign exchange swap

b)

Futures trading

c)

Forward trading

d)

Options trading

87.

Which of the following entities is NOT allowed to trade on the foreign exchange market?

a)

Commercial banks

b)

Organizations

c)

Individuals

d)

Foreign exchange brokers

88.

On FX, on day N, the opening exchange rate is 1 EUR = 1.3423 USD and the closing exchange rate is 1 EUR = 1.3434 USD. Thus, compared to USD, the EUR has:

a)

Appreciated by 11 points

b)

Depreciated by 8 points

c)

Depreciated by 11 points

d)

Appreciated by 9 points

89.

Which exchange rate will be applied for immediate foreign exchange transactions?

a)

Forward rate

b)

Spot rate

c)

Exercise price of the option contract

d)

Future rate

90.

A currency option contract between a bank and a customer. The customer must pay an option fee for:

a)

The broker regardless of whether the contract is executed or not

b)

The bank providing the contract when the customer executes the contract

c)

The broker when the customer executes the contract

d)

The bank regardless of whether the customer executes the contract or not

91.

The spot transaction is also called:

a)

Secondary transaction

b)

Derivative transaction

c)

Primary transaction

d)

Incidental transaction

92.

A futures transaction is a:

a)

Agreement to buy and sell currency in the future

b)

Executed in the OTC free market

c)

Agreement to buy and sell commodities on OTC

d)

Agreement to buy and sell a certain amount of foreign currency at a fixed exchange rate at a fixed time determined by the trading center

93.

The foreign exchange market is:

a)

Where the buying and selling of different currencies takes place

b)

Where the buying and selling of stocks takes place

94.

What is the foreign exchange market?

a)

A place where different currencies are bought and sold

b)

A place where stocks are bought and sold, including common and preferred stocks

c)

A place where bonds that have been issued are bought and sold

d)

A place where financial documents such as stock options, warrants, and options contracts are traded

95.

What is the spot market?

a)

Conducted on the foreign exchange exchange

b)

Open according to business hours (8 hours/day)

c)

The financial market of European countries

d)

Transactions where both parties buy and sell a certain amount of foreign currency at the spot exchange rate at the time of the transaction and settle within two (2) working days

96.

Which of the following is NOT a function of the foreign exchange market?

a)

Serving international trade

b)

Buying and selling securities that do not have foreign currency values

c)

Serving the international capital flow

d)

Forming the exchange rate

97.

What are the objects traded in the foreign exchange market?

a)

Buying and selling different currencies

b)

Buying and selling international standard gold

c)

Buying and selling checks

d)

Buying and selling different currencies and buying and selling international standard gold

98.

What does the derivative transaction include?

a)

Forward and futures transactions

b)

Swaps and options

c)

Forward, futures, swaps, and options

d)

Forward, futures, and options

99.

Which of the following is NOT a factor affecting the exchange rate?

a)

Inflation rate differences between countries

b)

Interest rate differences between countries

c)

International balance of payments status

d)

Population differences between countries

100.

In a country, if exports increase faster than imports, the exchange rate (direct quote) will:

a)

Increase

b)

Decrease

c)

Neither increase nor decrease

d)

Be zero

101.

What is currency devaluation?

4 lines
102.

In a country, if exports increase faster than imports, what will the exchange rate (direct quote) be?

a)

Increase

b)

Decrease

c)

Neither increase nor decrease

d)

Zero

103.

Devaluation of currency is:

a)

The reduction of the purchasing power of a country's currency compared to foreign currency

b)

That is, lowering the exchange rate of one unit of foreign currency

c)

The increase of the purchasing power of a country's currency compared to foreign currency.

d)

The exchange rate of the unit of foreign currency does not change

104.

The characteristic of a regulated floating exchange rate system is:

a)

The domestic market is unified at one exchange rate

b)

There are many different exchange rates in different market segments

c)

The exchange rate fluctuates entirely depending on the supply and demand for foreign currency

d)

The exchange rate is determined by the state or the central bank

105.

If a foreigner buys US government bonds

a)

Supply of USD increases

b)

Government deficit decreases

c)

Demand for USD increases

d)

The money supply of the US remains unchanged

106.

In a country, if imports increase faster than exports, what will the exchange rate (direct quote) be?

a)

Increase

b)

Decrease

c)

Not increase

d)

Zero

107.

The value of the domestic currency increases when:

a)

Exports increase

b)

FDI inflows decrease

c)

Exports increase and FDI inflows increase

d)

FDI inflows increase

108.

When the foreign exchange market of a country applies direct quotation, if the exchange rate decreases, how will it affect the import and export situation of that country?

a)

Restrict exports and stimulate imports

b)

Stimulate exports and restrict imports

c)

Restrict imports and exports

d)

Stimulate imports and exports

109.

What is it like?

a)

Limit exports and stimulate imports

b)

Stimulate exports and limit imports

c)

Limit both exports and imports

d)

Stimulate both exports and imports

110.

The floating exchange rate regime with regulation is:

a)

An exchange rate regime that lies between floating and fixed

b)

An exchange rate regime that lies between floating and non-fixed

c)

An exchange rate regime that lies between floating and regulated

d)

An exchange rate regime that lies between floating and unregulated

111.

The exchange rate fluctuates when there is a change in:

a)

The inflation differential between currencies

b)

The method of quoting the exchange rate

c)

The method of determining the exchange rate

d)

The position of the quoted currency

112.

The characteristic of the floating exchange rate regime with regulation is:

a)

The domestic market is unified at one exchange rate

b)

There are multiple exchange rates in different market segments

c)

The exchange rate fluctuates entirely based on supply and demand for foreign currency

d)

The exchange rate is determined by the state or central bank

113.

If the direct exchange rate increases, then:

a)

Foreign currency depreciates

b)

Domestic currency depreciates

c)

Foreign currency appreciates

d)

Domestic currency depreciates and foreign currency appreciates

114.

Which of the following issues are assumptions of the law of one price?

a)

Imperfect competition

b)

Quota

c)

Transportation and insurance costs

d)

Perfect competition, ignoring trade barriers and transportation and insurance costs

115.

If a country's currency appreciates against other currencies, then:

a)

The price of exported goods from this country will become more expensive for importing countries if other factors remain constant

b)

Inflation in that country may increase

c)

No change in export and import prices

d)

The price of exported goods from this country will become cheaper for importing countries if other factors remain constant

116.

According to the theory of purchasing power parity

4 lines
117.

According to the theory of purchasing power parity, if the market is perfect, the prices of identical goods must be equal when expressed in a common currency.

a)

If the market is perfect, the prices of identical goods must be equal when expressed in a common currency.

b)

Explain how exchange rates change when there is a change in interest rates between countries.

c)

Explain how exchange rates change when there is a change in the current account between countries.

d)

Explain how exchange rates change when there is a change in the capital account between countries.

118.

Which of the following characteristics is a disadvantage of the absolute purchasing power parity theory?

a)

Comparing the prices of a basket of goods in local currency and the prices of the same goods in foreign currency.

b)

Respecting the assumption of the law of one price.

c)

The weight of goods in the basket.

d)

Differences in the level of education.

119.

If inflation in the US is higher than inflation in the UK by 2%, then

a)

The USD will definitely depreciate by about 2% against GBP.

b)

The USD needs to depreciate by about 2% against GBP.

c)

The USD needs to appreciate by about 2% against GBP.

d)

The exchange rate remains unchanged.

120.

The significance of the relative purchasing power parity theory is:

a)

Evaluating production costs and labor productivity between countries.

b)

Predicting future exchange rate changes.

c)

The cause of exchange rate changes.

d)

Predicting exchange rate changes and being the cause of exchange rate changes.

121.

Which of the following issues is not a reason for the exchange rate to differ from PPP?

a)

Statistics of 'identical' goods.

b)

Transportation costs.

c)

Labor productivity.

d)

No substitute goods for import.

122.

The relative purchasing power parity theory states that:

a)

Any currency with a high inflation rate tends to depreciate.

b)

Any currency with a higher inflation rate will have a higher interest rate.

123.

The theory of relative purchasing power parity states that:

a)

A currency with a high inflation rate will tend to depreciate

b)

A currency with a higher inflation rate will have a higher interest rate

c)

The exchange rate difference reflects the inflation difference

d)

Interest rates are always higher than the inflation rate

124.

Assuming the law of one price is violated. In a fixed exchange rate regime, the equilibrium state of the law of one price will be established because:

a)

The government reserves foreign currency to intervene in the market

b)

The central budget uses market tools

c)

The government will apply a high income tax rate

d)

Goods are moved from places with low prices to places with high prices. Thus, the prices of goods will be equal in the markets

125.

The law of one price states that the prices of goods in the world will …… if measured in a common currency:

a)

Be equal

b)

Be approximately equal

c)

Differ

d)

Create arbitrage opportunities

126.

The spot exchange rate GBP/USD = 1.89. The 6-month forward rate F1/2(GBP/USD) = 1.91. What does the difference between the forward rate and the spot rate imply? (assuming CIP exists)

a)

GBP interest rate is higher than USD interest rate

b)

GBP depreciates against USD

c)

The inflation rate of GBP decreases

d)

GBP is expected to appreciate against USD

127.

If the direct exchange rate increases:

a)

Foreign currency depreciates

b)

Domestic currency depreciates

c)

Foreign currency appreciates

d)

Domestic currency depreciates and foreign currency appreciates

128.

If the price level in the United States decreases relatively compared to Vietnam (lower inflation rate) with the condition that other factors remain unchanged, then:

a)

USD depreciates against VND

b)

USD appreciates against VND

c)

USD remains the same against VND

d)

VND appreciates against USD

129.

Exchange rates fluctuate when there is a change in:

a)

The inflation rate difference between currencies

b)

The method of quoting exchange rates

c)

The method of determining exchange rates

d)

The position of the currency

130.

What causes exchange rates to fluctuate?

a)

Inflation differentials between currencies

b)

Exchange rate quotation methods

c)

Methods of determining exchange rates

d)

The position of the quoted currency

131.

What will happen if the FED increases the supply of USD?

a)

USD will appreciate as it stimulates US economic growth

b)

USD will appreciate by increasing US interest rates

c)

USD will depreciate and inflation will rise in the short term

d)

USD will depreciate as it pressures other countries to raise interest rates

132.

How will the value of VND change if commodity prices increase equally in the US and Vietnam?

a)

The value of VND remains unchanged

b)

VND appreciates

c)

VND depreciates

d)

There is no basis for making a statement

133.

If American investors demand a real return of 6% and expected inflation in the US is 4%, what is the nominal interest rate of USD?

a)

7%

b)

8%

c)

9%

d)

10%

134.

What is the English abbreviation for the interest rate parity theory in the case of exchange rate risk insurance?

a)

IRP

b)

CIP

c)

UIP

d)

PPP

135.

If the 6-month forward rate of AUD/VND is 2% and the interest rate of VND is 7%, what must the corresponding AUD interest rate be according to the CIP rule?

a)

2.80%

b)

2.85%

c)

2.94%

d)

2.99%

136.

What assumptions are made to form the interest rate parity theory?

a)

No transaction costs and capital flow barriers

b)

No transaction costs and capital flow barriers; No risk;

c)

No transaction costs and capital flow barriers; No risk; Securities of quality n