Find Exercise 200 related to International Monetary and Financial Economics

The choice of exchange rate should be based on the situation of the party, in both directions, the former (the number is small) is the exchange rate of the base currency of the party, and the latter is the exchange rate of the base currency sold by the party.

In this case, the ** party is "you" and the base currency is the US dollar.

1. The bank wants to buy US dollars from you, that is, "you" sell US dollars at an exchange rate of 2, if you want to buy US dollars, the exchange rate.

3. If you want to buy Hong Kong dollars, that is, sell US dollars, the exchange rate is.

1.The bank buys US dollars.

Copy, is my bai selling price, exchange rate 1 US dollar = Hong Kong dollar. du2.I want to buy US Zhi Yuan, DAO exchange rate 1 US dollar = Hong Kong dollar.

3.I want to buy Hong Kong dollars, the exchange rate is 1 US dollar = Hong Kong dollars, or 1 Hong Kong dollars = US dollars.

It should be like this -(:

Under the condition of $10, the demand is 300 The supply is 100 Quota 50 When the ** per unit of peanuts is $10, and the country does not set a quota, the import volume is:

d-s = (400-10*10)-(50+5*10)=200 When the import of 200 units of peanuts is limited to the quota of 50 units, the following effects will occur:

1) The **** of peanuts in the country is: 400-10p=50+5p+50, p=20

2) Quota rent is: (20-10)*50=500 (3) Consumption distortion is Production distortion is.

--elliott

Answer]: All other things being equal, and assuming that the economy is initially in a long-term equilibrium. In the short term, a country's aggregate real money demand falls, and the country's interest rate level falls due to the unchanged level, which leads to an increase in the exchange rate.

In the long run, the rise in the exchange rate increases the country's exports, increases the aggregate demand, and rises in the country, so that the supply of real money decreases, the interest rate rises to the long-term equilibrium level, and the exchange rate falls until the long-term equilibrium level is restored.

Answer]: C The key currency is the most commonly used in a country's international economic transactions, the largest proportion of foreign exchange reserves, and can be exchanged by the delay.

Answer] Sock change: b

Based on the comparison of the real value of the national currency with the key currency, the exchange rate against it is determined, and this exchange rate is the basic exchange rate. Generally speaking, the US dollar is the currency used more often in international payments, and all countries regard the US dollar as the main currency for setting exchange rates, and often regard the exchange rate against the US dollar as the basic exchange rate. The arbitrary exchange rate refers to the exchange rate between the local currency and the non-key currency calculated on the basis of the basic exchange rate, which is the exchange rate calculated by the exchange rate of the two judgment currencies against the third country.

The impact of the balance of payments on the money supply is mainly reflected in foreign exchange reserves, which increase in the balance of payments surplus and vice versa. In the late sixties and early seventies of the 20th century, the balance of payments theory developed by Mundell and Johnson: Balance of Payments Currency Analysis said that the relationship between the balance of payments and the domestic money supply under the open economy was made.

According to this theory, under the basic premise that the money demand function is a long-term stability function, the money supply of a country in an open economy is generated by two ways: domestic credit DC and international reserves FX (mainly foreign exchange reserves), i.e., M[2] K H K (FX DC) ......

k: currency multiplier, h: high-energy currency).

Differentiating the equation yields: m[s] (fx dc) k (b k dc) k.........

B: Current Account Balance, K: Foreign Capital Inflows).

The formula suggests that every unit of domestic currency in an open economy must be generated by the expansion of domestic credit or the increase in foreign exchange reserves. Among them, domestic credit is directly or indirectly controlled by the national monetary authority, so it can be regarded as an exogenous policy variable, while whether foreign exchange reserves are exogenous depends on different exchange rate regimes. Specifically, under the floating exchange rate system, the change in the supply and demand of the foreign exchange market caused by the imbalance of the balance of payments determines the new exchange rate level, and the foreign exchange reserves will not change because of this, that is, FX is zero, and both foreign exchange reserves and money supply are exogenous; Under a fixed exchange rate system (including the pegged exchange rate system), changes in reserves are caused by the imbalance between demand and supply inherent in the foreign exchange market.

If there is an excess supply of domestic currency (excess demand for foreign currency), the local currency exchange rate can be prevented by using reserves to buy the local currency**; Conversely, an oversupply of foreign currency will lead to an increase in reserves, and in order to prevent the appreciation of the local currency, it will be necessary to use the local currency to buy foreign currency. It can be seen that under the fixed exchange rate system, both the foreign exchange reserve fx and the money supply m[s] are endogenous, and only the change in the exchange rate is exogenously fixed to zero.