【正文】 第一篇：國際金融課后習(xí)題答案You are given the following information about a country’s international transactions during a year: the values of the country’s goods and services balance,current account balance,and official settlements balance? trade balance: $330198 + 196198 + 1968 = $119 Official settlements balance: $330204 + 3202 + 4 = $23 are the value of the change in official reserve assets(net)?Is the country increasing or decreasing its net holdings of official reserve assets? in official reserve assets(net)=(1 + )= .(Note that the interest rate used must match the time period of the investment.)There is a covered interest differential of % for 30 days(6 percent at an annual rate).The can make a higher return, covered against exchange rate risk, by investing in SFrdenominated bonds, so presumably the investor should make this covered the interest rate on SFrdenominated bonds is lower than the interest rate on dollardenominated bonds, the forward premium on the franc is larger than this difference, so that the covered investment is a good of covered interest arbitrage,what pressures are placed on the various rates?if the only rate that actually changes is forward exchange rate,to what value will it bu driven? lack of demand for dollardenominated bonds(or the supply of these bonds as investors sell them in order to shift into SFrdenominated bonds)puts downward pressure on the prices of —upward pressure on extra demand for the franc in the spot exchange market(as investors buy SFr in order to buy SFrdenominated bonds)puts upward pressure on the spot exchange extra demand for SFrdenominated bonds puts upward pressure on the prices of Swiss bonds—downward pressure on Swiss interest extra supply of francs in the forward market(as cover their SFr investments back into dollars)puts downward pressure on the forward exchange the only rate that changes is the forward exchange rate, this rate must fall to about $, the covered interest differential is close to is testing whether uncovered interest parity holds for actual rates more difficult than testing whether covered interest parity holds? In testing covered interest parity, all of the interest rates and exchange rates that areneeded to calculate the covered interest differential are rates that can observed in the bond and foreign exchange whether the covered interest differential is about zero(covered interest parity)is then straightforward(although some more subtle issues regarding timing of transactions may also need to be addressed).In order to test uncovered interest parity, we need to know not only three rates—two interest rates and the current spot exchange rate—that can be observed in the market, but also one rate—the expected future spot exchange rate—that is not observed in any tester then needs a way to find out about investors39。 way is to ask them, using a survey, but they may not say exactly what they really way is to examine the actual uncovered interest differential after we know what the future spot exchange rate actually turns out to be, and see whether the statistical characteristics of the actual uncovered differential are consistent with an expected uncovered differential of about zero(uncovered interest parity)the following rates currently exist: spot exchange rate: ＄:3% Annual interest rate on 180day dollardenominated bonds:4% Ibvestors currently expect the spot exchange rate to be about＄(approximately)at these rates euro is expected to appreciate at an annual rate of approximately((% = 0, so uncovered interest parity holds(approximately).What is likely to be the effect on the spot eschange rate if the interest rate on 180day dollardenominated bonds declines to 3%? If the euro interest rate and the expected future spot rate are unchanged,and if uncovered interest parity is reestablished,what will the new current spot exchange rate be?has the dollar appreciated or depreciated? the interest rate on 180day dollardenominated bonds declines to 3%, then the spot exchange rate is likely to increase—the euro will appreciate, the dollar the initial current spot exchange rate, the initial expected future spot exchange rate, and the initial euro interest rate, the expected uncovered interest differential shifts in favor of investing in eurodenominated bonds(the expected uncovered differential is now positive, 3% + 1%3% = 0)You observe the following current rates: Spot exchange rate: ＄:4% Annual interest rate on 90day yendenominated bonds:4% uncovered interest parity holds,what spot exchange rate do investors expect to exist in 90 days? uncovered interest parity to hold, investors must expect that the rate of change in the spot exchangerate value of the yen equals the interest rate differential, which is must expect that the future spot value is the same as the current spot value, $,investors expect the exchange rate to be＄$, then they expect the yen to depreciate from its initial spot value during the next 90 the other rates, investors tend to shift their investments toward dollardenominated extra supply of yen(and demand for dollars)in the spot exchange market results in a decrease in the current spot value of the yen(the dollar appreciates).The shift toexpecting that the yen will depreciate(the dollar appreciate)sometime during the next 90 days tends to cause the yen to depreciate(the dollar to appreciate)immediately in the current spot aid in its efforts to get reelected,the current government of o country decides to increase the growth rate of the domestic money supply by two percentage increased growth rate bees”permanene”because once started it is difficult to to the monetary approach,how will this affect the longrun trend for the exchange rate value of the country’s currency? the growth rate of the domestic money supply(M s)is two percentage points higher than it was previously, the monetary approach indicates that the exchange rate value(e)of the foreign currency will be higher than