说明：用英语命题和答题

1．Pleaseexplainthefollowingterms(32points)

1.Marshall-LernerCondition2.SDRs

3.CrossRate4.CoveredInterestArbitrage

5.JointFloat6.InternationalLiquidity

7.Speculation8.InternationalBankingFacility

II.Questions(54points)

1.ExplainthestructuralapproachinBOPadjustment.(12points)

2.Explainhowthedevaluation(ordepreciation)ofacountry’scurrencyaffectsitseconomy.(15points)

3.WhatarethecharacteristicsoftheRenMinBiratesystem?(12points)

4.Makeacomparisonbetweeninternationaldirectinvestmentandportfolioinvestment.(15points)

III.Calculation(14points)

AssumeitisnowMarch.AUkcompanyowesanAmericansupplier$166000.Thisamountispayablein4months’time,
inJuly,andthefinancedirectoroftheUKcompanyisconcernedthatthedollarmaystrengthenagainstthe
sterlingbeforepaymentisdue.Thefinancedirectorisundecidedastowhethertouseaforwardcontractand
hasobtainedthefollowingquotations:

$/?forwardrates

spot1.42990~1.4370

onemonth0.35~0.33cpm

fourmonths1.42~1.38cpm

Required

EvaluatethismethodfortheUKcompanytohedgethecurrencyrisk.Assumeforthepurposeofyourevaluation
thatinJulythespotratewas1.3328~1.3408$/?