11. Suppose the yuan against the dollar is 6.8275. This course is the result of the interaction of supply and demand in the system of freely floating exchange rates.

How does this course will affect the following processes:

• the fall in interest rates in China

• increase in consumer spending in the US

• reduction of the income tax in China


12. Assume that the interest rate on deposits of reserves in Russia 20% per annum in the US - 1.5%. The current rate is 30 rubles. per dollar. How to determine the expected rate of the dollar (in a year), based on the theory of interest rates.


13. If as a result of unexpectedly high volume of exports from the Russian ruble became unacceptably high, lower it to the Central Bank shall:

a) to increase the foreign exchange reserves

b) impose restrictions on the export of capital from the country;

c) to reduce the money supply;

d) increase the refinancing rate;

e) to reduce the foreign exchange reserves.

Explain your choice.


14. In the era of the gold standard Russia owes Britain 50 thousand. Pounds. After repayment of the debt, as trade ties continued, the United Kingdom has proved to be 100 thousand. Rubles. 1 ruble coin contains 1 gram of gold coin one pound sterling - 10 grams of gold. The cost of transporting gold was 1 penny per 1 gram.

What is the amount of gold had to take out to pay off its debts:

a) Russia

b) United Kingdom


15. The material presented in this course, and by independent search features make a list of credit characteristic of Export-Import Bank (no more than 0.5 pages).


16. In 2000, the euro was worth 28.5626 rubles., 2003 - 35.3625 rubles. During the same period the index of prices in Russia amounted to 138.8%, and in Germany - 108.8%. According to the theory of purchasing power parity, the ruble in 2003 was:

a) is undervalued;

b) is overvalued.

Explain your choice.


17. Fill in the table "forms of international lending" (filled for example):

The criterion of classification of forms Forms of international credit Main features of this form of credit


18. How do you understand the statement "The connection between the spot market, forward market and the financial markets that create a state of equilibrium is achieved through a secured interest arbitrage."


19. Fill in the table "Formation of an international financial center in Moscow":

Direction of works on creation of a financial center in Moscow, available capacity (Russian and international) Tasks in this area, which should be solved


20. Suppose Samara city administration has decided to build a new bridge across the Volga. In which of the international financial institutions is advisable to seek a loan - the IMF, the IBRD, IDA, and why? What are the conditions and requirements necessary to provide that guarantee to count on a loan?

References