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发布时间：2023-11-02 02:49:08

Chapter8—RelationshipsamongInflation,InterestRates,andExchangeRates

1.Assumeatwo-countryworld:CountryAandCountryB.Whichofthefollowingiscorrectaboutpurchasingpowerparity(PPPasrelatedtothesetwocountries?a.IfCountryA'sinflationrateexceedsCountryB'sinflationrate,CountryA'scurrencywillweaken.b.IfCountryA'sinterestrateexceedsCountryB'sinflationrate,CountryA'scurrencywillweaken.c.IfCountryA'sinterestrateexceedsCountryB'sinflationrate,CountryA'scurrencywillstrengthen.d.IfCountryB'sinflationrateexceedsCountryA'sinflationrate,CountryA'scurrencywillweaken.

ANS:APTS:1
2.Givenahomecountryandaforeigncountry,purchasingpowerparity(PPPsuggeststhat:a.ahomecurrencywilldepreciateifthecurrenthomeinflationrateexceedsthecurrentforeigninterestrate.b.ahomecurrencywillappreciateifthecurrenthomeinterestrateexceedsthecurrentforeigninterestrate.c.ahomecurrencywillappreciateifthecurrenthomeinflationrateexceedsthecurrentforeigninflationrate.d.ahomecurrencywilldepreciateifthecurrenthomeinflationrateexceedsthecurrentforeigninflationrate.

ANS:DPTS:1
3.TheinternationalFishereffect(IFEsuggeststhat:a.ahomecurrencywilldepreciateifthecurrenthomeinterestrateexceedsthecurrentforeigninterestrate.b.ahomecurrencywillappreciateifthecurrenthomeinterestrateexceedsthecurrentforeigninterestrate.c.ahomecurrencywillappreciateifthecurrenthomeinflationrateexceedsthecurrentforeigninflationrate.d.ahomecurrencywilldepreciateifthecurrenthomeinflationrateexceedsthecurrentforeigninflationrate.

ANS:APTS:1
4.Becausethereareavarietyoffactorsinadditiontoinflationthataffectexchangerates,thiswill:a.reducetheprobabilitythatPPPshallhold.b.increasetheprobabilitythatPPPshallhold.c.increasetheprobabilitytheIFEwillhold.d.BandC

ANS:APTS:1
5.Becausetherearesometimesnosubstitutesfortradedgoods,thiswill:a.reducetheprobabilitythatPPPshallhold.b.increasetheprobabilitythatPPPshallhold.c.increasetheprobabilitytheIFEwillhold.d.BandC
ANS:A
PTS:1

6.AccordingtotheIFE,ifBritishinterestratesexceedU.S.interestrates:a.theBritishpound'svaluewillremainconstant.b.theBritishpoundwilldepreciateagainstthedollar.c.theBritishinflationratewilldecrease.d.theforwardrateoftheBritishpoundwillcontainapremium.e.today'sforwardrateoftheBritishpoundwillequaltoday'sspotrate.

ANS:BPTS:1
7.Givenahomecountryandaforeigncountry,theinternationalFishereffect(IFEsuggeststhat:a.thenominalinterestratesofbothcountriesarethesame.b.theinflationratesofbothcountriesarethesame.c.theexchangeratesofbothcountrieswillmoveinasimilardirectionagainstothercurrencies.d.noneoftheabove

ANS:DPTS:1
8.Givenahomecountryandaforeigncountry,purchasingpowerparitysuggeststhat:a.theinflationratesofbothcountrieswillbethesame.b.thenominalinterestratesofbothcountrieswillbethesame.c.AandBd.noneoftheabove

ANS:DPTS:1
9.IfinterestratesontheeuroareconsistentlybelowU.S.interestrates,thenfortheinternationalFishereffect(IFEtohold:a.thevalueoftheeurowouldoftenappreciateagainstthedollar.b.thevalueoftheeurowouldoftendepreciateagainstthedollar.c.thevalueoftheeurowouldremainconstantmostofthetime.d.thevalueoftheeurowouldappreciateinsomeperiodsanddepreciateinotherperiods,butonaveragehaveazerorateofappreciation.
ANS:APTS:1
10.IftheinternationalFishereffect(IFEdidnotholdbasedonhistoricaldata,thenthissuggeststhat:a.somecorporationswithexcesscashcanlockinaguaranteedhigherreturnonfutureforeignshort-terminvestments.b.somecorporationswithexcesscashcouldhavegeneratedprofitsonaveragefromcoveredinterestarbitrage.c.somecorporationswithexcesscashcouldhavegeneratedhigherprofitsonaveragefromforeignshort-terminvestmentsthanfromdomesticshort-terminvestments.d.mostcorporationsthatconsistentlyinvestinforeignshort-terminvestmentswouldhavegeneratedthesameprofits(onaverageasfromdomesticshort-terminvestments.
ANS:CPTS:1
11.Underpurchasingpowerparity,thefuturespotexchangerateisafunctionoftheinitialspotrateinequilibriumand:a.theincomedifferential.b.theforwarddiscountorpremium.c.theinflationdifferential.d.noneoftheabove
ANS:CPTS:1

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