國際經濟學部分55道題目第一次刷題，答對率67%。
Q. The country of Australia classifies products departing from the port of Melbourne to other countries as:
exports.
imports.
net exports.
Solution
A is correct. Exports are products and services that are produced within a country’s borders and then transported to another country. B is incorrect because imports are products and services that are produced outside a country’s borders and then brought into the country. C is incorrect because net exports represent the difference between exports and imports of products and services.
Q. International trade most likely:
helps keep prices down.
reduces competition.
reduces demand for domestic products and services
Solution
A is correct. International trade promotes greater efficiency, which helps keep prices down. B and C are incorrect because international trade tends to increase competition and increase demand for domestic products and services.
Q. Which of the following would most likely be reduced if India imposed a tariff on goods from Japan?
India’s exports
India’s imports
Japan’s imports
Solution
B is correct. A tariff tends to make imported goods more expensive. Goods imported from Japan would likely be more expensive, which would reduce India’s imports (and Japan’s exports).
Q. Which of the following would most likely promote international trade?
Increased tariffs
Higher transportation costs
Faster transport of products and services
Solution
C is correct. Improvements in transportation, including faster transport, help international trade. A is incorrect because tariffs are trade barriers; they are effectively taxes (duties) levied on imported goods and services. Increased trade barriers limit international trade. B is incorrect because higher transportation costs increase the cost of importing and exporting goods, which limits international trade.
Q. Payments from a computer company in the United Kingdom to a company in India that operates a call centre to answer questions from the computer company’s customers are most likely included in the United Kingdom’s:
current account.
capital account.
financial account.
Solution
A is correct. Answering questions at a call centre in India to service a computer company’s customers in the United Kingdom is an export of service from India and an import of service for the United Kingdom. The flow of money for service is included in the current account in the balance of payments.
Q. Countries with exports greater than imports most likely have a current account:
deficit.
surplus.
in balance.
Solution
B is correct. A country with exports greater than imports has positive net exports, or a trade surplus. The trade balance tends to dominate the current account balance, so this country most likely has a current account surplus.
Q. If a country has a current account surplus, it most likely has a capital and financial account:
deficit.
surplus.
in balance.
Solution
A is correct. If a country has a current account surplus, it will have a capital and financial account deficit—the country is a net saver and ends up being a net lender to the rest of the world.
Q. A central bank’s intervention aimed at stabilising the value of its currency within a certain range best describes a:
fixed exchange rate system.
pure floating exchange rate system.
managed floating exchange rate system.
Solution
C is correct. Under a managed floating exchange rate system, a country’s central bank intervenes to stabilise its currency within a certain range. To do so, it buys its domestic currency using its foreign currency reserves to strengthen its domestic currency or buys foreign currency using its domestic currency to weaken its domestic currency.
Q. A company imports goods and pays for them in a foreign currency. Which of the following exchange rate systems would eliminate currency risk for the company?
Fixed
Pure floating
Managed floating
A是正確的。固定匯率制度的優點是它消除了貨幣風險（或外匯風險），即與匯率波動有關的風險。在固定匯率制度下，公司將確切地知道它將爲進口貨物支付的金額。B和C是不正確的，因爲在純粹的或有管理的浮動匯率制度下，公司面臨貨幣風險。
Q. Which of the following is most likely to cause a country’s currency to appreciate?
High inflation
Political instability
A current account surplus
Solution
C is correct. A current account surplus tends to lead to an appreciation of a country’s currency. A and B are incorrect because high inflation and political instability tend to lead to a depreciation of a country’s currency.
Q. A country’s currency will most likely depreciate when the country experiences high:
interest rates.
government debt.
economic growth.
Solution
B is correct. High government debt tends to lead to a depreciation of a country’s currency. A and C are incorrect because high interest rates and high economic growth tend to lead to an appreciation of the country’s currency.
Q. A currency dealer makes more money when the:
bid–offer spread is wide.
bid–offer spread is narrow.
bid rate is equal to the offer rate.
Solution
A is correct. The bid exchange rate (or bid rate) is the exchange rate at which the currency dealer will buy the foreign currency, and the offer exchange rate (or offer rate) is the exchange rate at which the currency dealer will sell the foreign currency. The currency dealer makes a profit by buying a unit of currency more cheaply than it sells it. Thus, the wider the bid–offer spread, the more money the currency dealer makes.
Q. The most likely objective of an exporter using the forward market in currencies is to:
reduce risk.
increase profit.
increase currency exposure.
A是正確的。出口商最有可能利用外匯遠期市場來降低與外幣未來現金流相關的貨幣風險。利用遠期市場，出口商可以獲得未來現金流暴露於貨幣風險的可預測性。因此，出口商可以專注於其核心業務活動，而不是擔心匯率風險。B是不正確的，因爲出口商不使用外匯遠期市場來增加利潤，而是降低貨幣風險。C是不正確的，因爲通過使用遠期市場，出口商試圖減少而不是增加貨幣風險。
Q. Which of the following is a foreign exchange transaction involving the forward market?
A company writes a cheque in foreign currency.
A tourist converts US$1,000 into euros at an airport.
A company agrees to buy US$100,000 for ¥7,500,000 in 60 days.
Solution
C is correct. An agreement to convert one currency into another in the future is a foreign exchange transaction that involves the forward market. A and B are incorrect because writing a cheque in a foreign currency and converting US dollars into euros at the airport are foreign exchange transactions conducted in the spot market.
Q. At the start of a year, the exchange rate between currencies in Canada and the United Kingdom was $1.80/£1. Six months later, it was $1.55/£1. Over this period, relative to the United Kingdom, Canada most likely experienced:
higher inflation.
higher interest rates.
a larger increase in its current account deficit.
B是正確的。由於下半年英鎊購買的加元較少，英鎊相對於加元貶值，或者說加元相對於英鎊升值。較高的利率通常會增加流入一個國家的資本，增加對該貨幣的需求並使其升值（即加元的升值）。A不正確。加拿大較高的通貨膨脹率將導致加元相對於英鎊的貶值，而不是這裏顯示的方向。C不正確。經常賬戶赤字的更大增長將導致加元相對於英鎊的貶值，而不是這裏顯示的方向。
Q. One of the limitations that prevents the purchasing power parity theorem from holding in the short to medium term is that:
exchange rates between countries are not the same.
import and export restrictions may exist between countries.
the price of the same good in its own domestic currency differs across countries.
B是正確的。購買力平價的基本概念是，考慮到兩國貨幣之間的匯率，兩個不同國家的一籃子商品的價格應該相同。如果不是這樣的話，套利機會就會存在，允許個人在一個國家購買商品，將其運往另一個國家，並以利潤出售。但是，如果國家之間存在貿易限制（如關稅、配額和非貿易壁壘），那麼將貨物從一個國家運輸到另一個國家可能很困難（或不可能）。A不正確。購買力平價持有國與國之間的匯率不必相同：只要考慮到兩國貨幣之間的匯率，貨物的成本應該是相同的。C不正確。商品在不同的國家可能有不同的價格，但是一旦考慮到匯率，購買力平價的價格應該是相同的。
Q. An import tariff can be described as a:
limit on the quantity of goods that can be imported.
subsidy paid by a government to discourage imports.
tax or duty levied on imported products and services.
Solution
C is correct. An import tariff is a tax or duty levied on imported products and services. Its purpose is to generate revenue for the government and protect domestic suppliers. A is incorrect. The description is of a quota. B is incorrect. Tariffs are amounts paid by importers not the government.
Q. The purpose of the General Agreement on Tariffs and Trade (GATT) was to:
reduce international trade barriers.
replace non-tariff barriers with tariffs.
provide better protection for domestic suppliers.
Solution
A是正確的。促進國際貿易的一個主要趨勢是減少國際貿易壁壘；自1947年關貿總協定通過以來，這些壁壘一直在穩步減少。B不正確。關稅和非關稅壁壘都會減少國際貿易。關貿總協定的目標是減少一切壁壘，促進國際貿易。C不正確。關稅允許政府建立貿易壁壘，以保護國內供應商（以及賺取收入）。關貿總協定的目標是減少這些貿易壁壘。
Q. Country X has an absolute advantage over Country Y in producing both Items A and B. Compared with Country X, Country Y has a higher opportunity cost producing Item A relative to Item B. Which country should produce Item A?
Country X because its opportunity cost to produce Item A is lower.
Country Y because its opportunity cost to produce Item A is higher.
Country X because it has an absolute advantage in producing both items.
Solution
A is correct. Opportunity cost refers to what must be given up to undertake a particular alternative. Production should be carried out by the country that, on a relative basis, gives up the least to produce a particular product. Country X should produce Item A because it has a lower opportunity cost in producing the item; Country X is said to have a comparative advantage over Country Y in producing Item A. B is incorrect. The country with the lower opportunity cost should be the producer. C is incorrect. Absolute advantage means that Country X uses less resources to produce both products (or produces more in a given time period). The important consideration in deciding who should produce a product, however, is what is given up in producing one product over the other.
Q. Several years ago, a country’s central bank changed its foreign exchange rate system. Prior to the change, the exchange rate system in place had the following characteristics:
Importers and exporters faced no foreign exchange risk.
When the country’s current account balance worsened as the country became uncompetitive, the currency was devalued.
Under the new exchange rate system, the central bank infrequently intervenes to stabilise the country’s currency as needed. The original and new foreign exchange rate systems, respectively, are referred to as:
floating rate and fixed rate.
fixed rate and managed floating rate.
managed floating rate and floating rate.
Solution
B is correct. The initial characteristics are that of a fixed rate system, and with occasional central bank intervention, the new system has the characteristic of a managed floating rate system. A is incorrect. Under a floating rate system, the exchange rate is left alone to find its own value. C is incorrect. The initial characteristics are that of a fixed rate system.
Q. The forward exchange rate is the exchange rate at which a bank or currency dealer will convert one currency into another:
today, at a rate determined today.
at a future date, at a rate determined today.
at a future date, at a rate determined in the future.
Solution
B is correct. The forward exchange rate is the exchange rate at which a bank or currency dealer will exchange one currency for another at a future date.
Q. A Canadian supermarket chain imported some fruits from the United States and must pay in US dollars in 30 days. From the time the order was placed until payment was made, the Canadian dollar appreciated relative to the US dollar. This change means that:
it takes more Canadian dollars to buy one US dollar.
the Canadian supermarket chain will require fewer US dollars to settle its bill.
the change in the exchange rate is beneficial to the Canadian supermarket chain.
Solution
C is correct. With the Canadian dollar appreciating relative to the US dollar, it takes fewer Canadian dollars to buy one US dollar, which is beneficial for the Canadian importer. Because the invoice is in US dollars, the same number of US dollars will be required, regardless of the exchange rate at the time of payment. A is incorrect. With the appreciation of the Canadian dollar, it takes fewer Canadian dollars to purchase 1 US dollar. B is incorrect. Payment is required in US dollars, so the same number of them will have to be purchased; it will just take fewer Canadian dollars to do so, which is beneficial to the Canadian supermarket chain.
Q. In international trade, quotas:
help promote foreign trade.
are beneficial to foreign exporters of goods and services.
limit the quantity of goods or services that can be imported.
Solution
C is correct. A quota limits the quantity of goods or services that can be imported. A is incorrect. A quota reduces foreign competition and increases consumption of domestic goods. B is incorrect. A quota limits the quantity of goods or services that can be imported into the country and is therefore a disadvantage to foreign exporters.
Q. A country has a lower opportunity cost in producing a particular good than other countries. This country is said to have a(n):
absolute advantage.
strategic advantage.
comparative advantage.
Solution
C is correct. A comparative advantage arises when one country has a lower opportunity cost in producing a good than another country. In other words, the country gives up less (of some other good) to produce the item in which it has a comparative advantage over other countries. A is incorrect. An absolute advantage arises when a country is more efficient in producing a good or service than another country, i.e., it can produce the good or service with less resources B is incorrect. A comparative advantage arises when one country has a lower opportunity cost in producing a good than another country
Q. In theory, the sum of the current account and the capital and financial account for a country:
equals zero.
is less than zero if the country exports more than it imports.
is greater than zero if the country exports more than it imports.
Solution
A is correct. The balance of payments accounts are a record of all of the monetary transactions between a country and the rest of the world; it is represented by the sum of the current and capital and financial accounts and must sum to zero. B is incorrect. The balance of payments account (which is the sum of the current and capital and financial accounts) must sum to zero. C is incorrect. The balance of payments account (which is the sum of the current and capital and financial accounts) must sum to zero.
A是正確的。美國零售商必須在90天內支付15萬英鎊的發票金額。遠期合同規定了一種匯率，零售商可以在90天內從經銷商處購買15萬英鎊，以便支付發票。B不正確。零售商將通過遠期合同出售美元併購買英鎊，以便與服裝供應商結算賬單。C不正確。遠期合約鎖定匯率，而不是指定貨幣交易商支付合約。
Q. Which of the following factors will result in the depreciation of a country’s currency?
A lower interest rate
A lower level of inflation
An increase in the capital account deficit
Solution
A is correct. Lower interest rates will make domestic investments less attractive to foreign investors, and they will sell their holdings (or not purchase them), leading to a depreciation of the country’s currency. B is incorrect. Lower inflation results in currency appreciation. C is incorrect. An increase in the capital account deficit means a current account surplus which results in currency appreciation.
Q. An identical good selling for different prices in two different countries, even after taking foreign exchange rates into account, is known as:
an absolute advantage.
purchasing power parity.
an arbitrage opportunity.
Solution
C is correct. After adjusting for foreign exchange rates, an identical good selling at different prices in different countries is considered to be an arbitrage opportunity. The item can be purchased in the low-price country and sold in the high-price country to make a profit on the difference in purchase and selling price. A is incorrect. An absolute advantage is when a country is more efficient in producing a good or service than another country. B is incorrect. Purchasing power parity is the concept that the same basket of goods should cost the same amount after taking into account the exchange rates – not that the basket of goods are valued differently as in this case.
Q. If Mexico is running a large current account deficit with Canada, which of the following will most likely occur?
Canada will reduce its imports from Mexico.
There will be an increase in Canadian exports to Mexico.
The Mexican peso will depreciate relative to the Canadian dollar.
Solution
C is correct. If Mexico is running a large current account deficit with Canada, it means that Mexican consumers are purchasing more Canadian dollar–denominated goods than Canadians are purchasing peso-denominated goods. There is a net excess demand for Canadian dollars, which will put downward pressure on the value of the peso relative to the Canadian dollar.
Q. An American importer has purchased aircraft engine parts from a supplier in the United Kingdom. The importer will have to pay £800,000 in six months, when delivery is to occur. Believing that the British pound will appreciate against the US dollar over this time period, the importer enters into a forward contract to purchase British pounds at £0.6724/$1 in six months. Which of the following statements is most appropriate? The importer’s cost will be:
unaffected by the future spot price of British pounds in six months.
lower if the spot price of British pounds in six months is £0.7396/$1.
lower if the spot price of British pounds in six months is £0.6052/$1.
Solution
A是正確的。一旦進口商達成購買英鎊的遠期交易，他就承諾以遠期匯率兌換貨幣，其成本與遠期即期匯率無關。
Q. Generally, the largest component of a country’s current account balance arises from the:
income account.
current transfers account.
goods and services accounts.
Solution
C is correct. For most countries, the largest component of the current account balance arises from net exports—that is, the goods and services accounts. A is incorrect. Trade dominates the current account balance. B is incorrect. Trade dominates the current account balance.
Q. A country operates a managed floating exchange rate system against the euro. During a period of economic turmoil, its currency strengthens against the euro. In response, the country’s central bank should:
sell euros.
sell the domestic currency.
deplete its non-domestic currency reserves.
Solution
B是正確的。央行將希望穩定人民幣匯率，因爲人民幣兌歐元正在升值。它將出售本國貨幣並積累非本國貨幣儲備。賣出本幣將削弱本幣匯率，並有助於將本幣匯率維持在規定範圍內。A不正確。央行將購買歐元，而不是出售歐元。C不正確。中央銀行將希望積累外匯儲備，即購買歐元和其他外幣，而不是耗盡將需要出售歐元和其他外幣的儲備。
Q. On 1 May, a Swedish automaker purchases electronic equipment from a manufacturer in the United Kingdom. The invoice is denominated in British pounds, with payment due in 90 days (29 July). On 1 May, the automaker enters into a three-month forward contract with a currency dealer. In three months, the currency dealer will sell the automaker British pounds at the:
spot rate in effect on 1 May.
spot rate in effect on 29 July.
three-month forward rate in effect on 1 May.
Solution
C is correct. A forward currency contract is an agreement to exchange currency at a predetermined rate on a future date, but no actual transaction takes place on the day the forward contract is initiated. In three months, the currency dealer will provide the Swedish company with pounds at the previously agreed-on rate (i.e., the forward rate in effect on 1 May), and the Swedish company will pay the invoiced amount to the UK manufacturer. A is incorrect. Forward contracts are completed with the dealer selling pounds at the agreed upon forward rate. B is incorrect. Forward contracts are completed with the dealer selling pounds at the agreed upon forward rate.
Q. Over a period of time, the balance of payments tracks transactions between:
governments of various countries.
a country and the rest of the world.
corporations domiciled in different countries.
Solution
B is correct. The balance of payments tracks transactions between a country and the rest of the world during a period of time, typically one year. These transactions include those of individuals, companies, governments, and government agencies that are in the domestic country, as well as a similar list of entities abroad. A is incorrect. The balance of payments tracks transactions broader than just between governments in various countries. C is incorrect. The balance of payments tracks transactions broader than just between corporations in various countries.
Q. In a particular year, Denmark reported a trade surplus, which means that Denmark’s:
exports exceeded imports.
net exports were negative.
growth rate of GDP was positive.
Solution
A is correct. A trade surplus occurs when exports exceed imports—that is, net exports are positive or inflows exceed outflows. B is incorrect. A trade deficit occurs when imports exceed exports, or net exports are negative. C is incorrect. Although X-M is one component of GDP and was positive here adding to the growth in GDP, other factors, C+I+G may have declined by a greater amount, so without that information we cannot infer what the impact of GDP would have been.
Q. Although the balance of payments should total zero, it seldom does so automatically and an errors and omissions adjustment is normally required. This adjustment is mainly because of:
inadequate attention to bookkeeping by international agents.
the way that data are aggregated using sampling and estimation techniques.
the incentive that financial institutions have to under-report transactions for tax reasons.
Solution
B is correct. Data for the balance of payments are collected from customs authorities for imports and exports, but surveys and sampling techniques are used in estimating the flows from many other sources. Because these values are not exact, it is quite unlikely that the balance of payments will equal zero. To force it to be zero, a “plug figure” called “errors and omissions” is applied. A is incorrect. Estimation and survey methods are the main cause of the problem. C is incorrect. Estimation and survey methods are the main cause of the problem.
Q. An advantage of a fixed exchange rate system is that:
the currency is likely to undergo appreciation.
importers and exporters face little foreign exchange risk related to their transactions.
an economy that becomes uncompetitive will find its capital account balance worsening.
Solution
B is correct. In a fixed rate system, the amount paid and received for goods and services is known with a great deal of certainty. There is not perfect certainty, however, because it is always possible for the central bank to devalue or revalue the currency before the trade is completed. A is incorrect. The solution to an overvalued currency in a fixed rate system is devaluation by the central bank. Appreciation occurs with undervalued currencies in a floating exchange rate system. Depreciation of a currency is a market reaction to an overvalued currency in a floating rate system. C is incorrect. An economy that becomes uncompetitive will see its current account balance worsen since its currency will be overvalued and its exports considered too expensive and imports too cheap. The capital account balance will show a surplus under such circumstances.
Q. Which of the following statements about international trade is correct? International trade:
leads to fewer choices for customers.
results in higher prices and lower quality goods and services.
allows countries to access resources that might otherwise be in short supply.
Solution
C is correct. International trade will result in increased competition which should result in lower prices, as well as innovation which should generate better quality goods and services. A is incorrect. Through imports international trade provides customers with a greater choice of products. B is incorrect. International trade will result in increased competition which should result in lower prices, as well as innovation which should generate better quality goods and services.
Q. In the following situation, which country would report an export?
Pat, an auto retailer in Ireland, purchased a car stereo from its manufacturer in Japan.
A US toothpaste manufacturer allows its product to be manufactured by a Kenyan firm, under licence. The Kenyan firm is restricted to selling the product domestically.
Japan only
United States only
Both Japan and the United States
C是正確的。出口是指在一國境內生產的貨物或服務，然後運往另一國。日本製造商正在出口一種商品，美國牙膏製造商正在出口一種服務（生產許可證）。A不正確。兩者都是出口的例子：一個是物品，另一個是服務。B不正確。兩者都是出口的例子：一個是物品，另一個是服務。
Q. The Mexican peso is appreciating relative to the Canadian dollar. This appreciation will cause Canadian imports of Mexican products to:
increase.
decrease.
be unchanged.
Solution
B is correct. An appreciating Mexican peso relative to the Canadian dollar means that Canadian purchasers of Mexican goods will face higher prices. Demand for Mexican goods will decline. A is incorrect. Mexican goods will be more expensive to Canadians and demand will fall. C is incorrect. Mexican goods will be more expensive to Canadians and demand will fall. The goods are more costly, not more valuable.
Q. A country has a comparative advantage for a particular good over another country if it can:
produce more of the good than the other country.
generate a profit by selling the good to the other country.
produce the good at a lower opportunity cost than the other country.
Solution
C is correct. A comparative advantage exists when a country can produce a good at a lower opportunity cost than another country. A is incorrect. This is an absolute advantage not a comparative advantage. B is incorrect. A profit is essential (in the long run) for trade to exist, but higher profits result when lower opportunity cost items are sold.
Q. Which of the following statements is correct about the balance of payments for the indicated countries?
When Portugal sells tungsten to Great Britain, it is recorded as an outflow in Portugal’s current account.
When a Japanese investor receives dividend payments on shares issued by a Swiss company, it is recorded as an inflow into Japan’s capital account.
When an Australian mining company purchases office equipment from the United States, it is recorded as an outflow from Australia’s goods and services subaccount of its current account.
C是正確的。**經常賬戶顯示了該國的消費和投資額（流出）與接收額（流入）之比。**澳大利亞礦業公司從美國購買辦公設備時，記爲其經常賬戶中澳大利亞商品和服務子賬戶的流出。A不正確。鎢的銷售是一種出口：流入經常賬戶的資金。B不正確。瑞士股票的股息似乎流入了日本經常賬戶的收入子賬戶。
Q. The difference between exports and imports of goods and services is called the:
balance of trade.
balance of payments.
current account balance.
A是正確的。貨物和服務進出口之間的差額稱爲貿易差額或淨出口。B不正確。國際收支平衡跟蹤一個國家與世界其他地區之間的所有交易。C不正確。經常賬戶餘額是三個子賬戶的總和：貨物和服務、收入和經常轉賬。
Q. A country has been running a persistent current account deficit. The natural correction of this situation would arise if the domestic currency:
appreciates, resulting in higher imports and lower exports.
depreciates, resulting in lower imports and higher exports.
depreciates, resulting in higher imports and lower exports.
B是正確的。經常賬戶赤字（進口大於出口）的自然修正是本幣貶值。貨幣貶值使進口（外國商品和服務）更加昂貴，因此它們會減少。對外國人來說，在國外銷售的國內商品和服務將更便宜，出口應會增加。這兩個效應應該有助於糾正經常賬戶赤字。A不正確。經常賬戶赤字應導致貨幣貶值，並在外國商品變得更貴、國內商品對外國人更便宜時導致修正。C不正確。貨幣走向是正確的，但對進出口的影響是倒退的。
Q. In a managed floating exchange rate system, a central bank:
does not intervene in the foreign exchange market but allows the market to determine the value of the currency.
will intervene to stabilise its currency by buying foreign currency using its foreign currency reserves to weaken the domestic currency.
will intervene to stabilise its currency by buying domestic currency using its foreign currency reserves to strengthen the domestic currency.
C是正確的。在有管理的浮動匯率制度中，中央銀行將通過使用外匯儲備購買本國貨幣來加強本國貨幣，從而進行干預以穩定本國貨幣。A不正確。在純粹的浮動匯率制度中沒有干預，但在有管理的浮動匯率制度中，央行將試圖穩定其貨幣。B不正確。爲了削弱本國貨幣，中央銀行將用本國貨幣購買外幣。
Q. A Swiss tourist is returning home after visiting Mexico and finds herself with 25,000 Mexican pesos remaining. Her local bank quotes her the following exchange rates:
| Bid | Offer |
|---|---|
| CHF0.0728/MXN | CHF0.0732/MXN |
In converting her Mexican pesos (MXN) to Swiss francs (CHF), the bank will apply the:
bid rate.
offer rate.
rate that is halfway between the bid and offer rates.
A是正確的。因爲銀行將購買墨西哥比索（MXN），它將應用出價率。B不正確。因爲銀行將購買墨西哥比索（MXN），它將應用出價率。C不正確。因爲銀行將購買墨西哥比索（MXN），它將應用出價率。
Q. Country A can produce 1 electric turbine using 10 units of labour and 4 refrigerators using 10 units of labour. Country B can produce 1 electric turbine using 7 units of labour and 4 refrigerators using 12 units of labour. According to the theory of comparative advantage, Country A should produce:
refrigerators and trade with Country B for electric turbines.
electric turbines and trade with Country B for refrigerators.
electric turbines and refrigerators and not trade with Country B.
Solution
A is correct. Country A has both an absolute and a comparative advantage in the production of refrigerators. It only takes 2.5 units of labour (10 units of labour divided by 4 refrigerators) to produce a refrigerator in Country A compared with 3.0 units of labour (12 units of labour divided by 4 refrigerators) in Country B. By contrast, Country B has both an absolute and a comparative advantage in the production of electric turbines. It only takes 7 units of labour to produce an electric turbine in Country B compared with 10 units of labour in Country A. Thus, according to the theory of comparative advantage, both countries will be better off if Country A makes refrigerators, Country B makes electric turbines, and they trade with each other.
Q. A South African investor purchases bonds in the UK market and pays for them with funds in his brokerage account in South Africa. In South Africa’s balance of payments, the purchase of the bond is treated as a:
direct investment.
portfolio investment.
reserve account transaction.
B是正確的。證券的買賣（如股票和債券）是國際收支中金融子賬戶的組合投資。A不正確。如果土地或生產公司被收購，將產生直接投資，C是不正確的。儲備賬戶交易是各國貨幣當局之間的交易。
Q. In a pure floating exchange rate system the:
central bank intervenes occasionally to stabilise its currency.
currency exchange rate is purely determined by demand and supply for each currency.
central bank only intervenes in the currency market when a target exchange rate is violated.
Solution
B is correct. In a pure floating exchange rate system, the central bank does not intervene in the currency market but allows the value of the currency to be determined by the interaction of demand and supply. A is incorrect. In a pure floating exchange rate system, the central bank does not intervene in the currency market. C is incorrect. In a pure floating exchange rate system, the central bank does not intervene in the currency market.
Q. A US businessman is about to depart on an unexpected trip to England. In a busy US airport, he finds three currency dealers with the following bid and offer rates for British pounds (£1):
| Dealer | Bid | Offer |
|---|---|---|
| 1 | $1.50/£1 | $1.60/£1 |
| 2 | $1.53/£1 | $1.59/£1 |
| 3 | $1.49/£1 | $1.61/£1 |
To meet his currency needs in England as cheaply as possible, the traveler should undertake a transaction with:
Dealer 1.
Dealer 2.
Dealer 3.
B is correct. The traveler wants to convert US dollars to British pounds to meet his currency needs in England. As such, he should compare the dealers’ offering rate (the rate at which the dealer is willing to sell pounds for dollars). Dealer 2 provides him with the best rate: It will only cost $1.59 to purchase £1. Both of the other dealers are charging more per pound. A is incorrect. The lowest offering rate is $1.59 from Dealer 2. C is incorrect. The lowest offering rate is $1.59 from Dealer 2.
Q. Over a period of time, the exchange rate between the euro and British pound changed from €1.23/£1 to €1.26/£1. For this period, relative to the pound, the euro is said to have:
devalued.
depreciated.
appreciated.
B是正確的。變動後，歐元的成本相對於英鎊有所增加（1.26歐元，而此前爲1.23歐元）。英鎊對歐元升值，歐元對英鎊depreciated。A不正確。devalued是一個國家的中央銀行決定降低本國貨幣相對於另一種貨幣的價值。C不正確。歐元對英鎊貶值了。
Q. The following events have been observed in three separate countries:
Country A The central bank lowered its key interest rate.
Country B The most recent release of inflation data indicates that inflation has continued to decline consistently over the past eight quarters.
Country C Recent attempts by the government to introduce several austerity programs have been received very unfavourably by unions, political groups, and most of the population. Polls indicate that the current government will not be re-elected in the upcoming election and will likely be replaced by a radical political party.
Which country will see an appreciation of its currency?
Country A
Country B
Country C
B是正確的。總的來說，一個通脹率持續較低的國家，隨着貨幣購買力的提高，其貨幣價值將上升。
Q. Interest on a Canadian government bond is paid to an investor in Spain. In Spain’s balance of payments, the interest is included in the:
current account.
trade surplus account.
capital and financial account.
A是正確的。投資者在西班牙獲得的外國利息和股息是流入西班牙經常賬戶收入子賬戶的資金。B不正確。當出口大於（小於）進口，即流入大於流出時，儘管存在貿易順差（赤字），但不存在此類賬戶。C不正確。收到的外國利息和股息是流入經常賬戶收入子賬戶的資金。購買債券本應是資本賬戶交易。
Q. A temporary worker comes from Mexico each year to help with the harvest on Canadian farms. The worker sends a large portion of his weekly earnings back to his homeland. What treatment is given to the wages paid to this worker in Canada’s balance of payments account?
The entire wage payment is an inflow into Canada’s capital account.
The amount sent to Mexico is an outflow from Canada’s current account.
The amount retained in Canada is an inflow into Canada’s current account.
Solution
B is correct. Money sent home by migrant workers is an outflow from the current account of the country where they work and an inflow to the current account of the country where the money is sent. This amount is included in the current transfers subaccount of the current account. A is incorrect. Only the portion sent abroad enters the BOP accounts, and is a deduction from the current account of the country where the money is earned. C is incorrect. The amount retained does not enter the balance of payments account – only the amount sent abroad is deducted from the current account of the country where the money is earned.
