15 Q15 Table 6 Exhibits The Change In Jpy Usd The Exchange Rate Between Japanese Yen Jpy And Us Dollar Usd Betw 1 (115.87 KiB) Viewed 34 times
15. Q15. [Table 6] exhibits the change in JPY/USD, the exchange rate between Japanese Yen (JPY) and US Dollar (USD) between 2021 and 2022. For example, 1 USD is exchanged with 128 JPY in April 2022. Choose all true statements (no partial point) [Table 6] Exchange rate between USD and JPY (JPY per 1 USD), 2021 - 2022 US Dollar Japanese You 10 120 110 2022 Tagesonic.com (2점) 01) Japanese firms that do not imports materials from outside of Japan but exports products would get better off as a result of the trend. 2) The trend would attract global investors to own financial assets denominated in JPY. 3) Broadly speaking, JPY has become appreciated over USD since March 2022. 4) it becomes more costly for Japanese consumers to purchase imported products in the Japanese market. 5) The trend was triggered by the recent increase in interest rates in Japan. 16. Choose all true statements among the following statements. (No partial point) (1점) 01) The relative increase in the domestic interest rate compared to the foreign interest rate, narrows the gap between the forward exchange rate and the spot exchange rate. 2) The higher interest rate a foreign bank provides the smaller amount of foreign currencies a domestic bank needs to borrow in order to offer a forward exchange rate contract to domestic firms. 3) Usually, it takes a few months or years of time lag for an international trade partner to complete payment in international transaction. It discloses exporting and importing firms to exchange rate volatility risk. 4) Firms can keep the expected future cash flow stable against the exchange rate volatility risks, by using hedging techniques such as the forward exchange rates. 5) Since most countries adopted floating exchange rates, the volatility of exchange rates has added burden to exporting firms, although it doesn't affect importing firms.
17. Which of the following is/are true about the "1997 IMF foreign currency crisis" in Korea? (No partial point) (1점) 01) When global investors requested early redemption of debts, many Korean firms were not able to return the amount immediately, which had globlal investors even more panicked, leading to the serial market reactions. 2) The International Monetary Fund (IMF) lent money to the Korean government to pay back the debt, and, in return, requested a series of restructuring of firms as well as the increase in transparency and efficiency of the finance market 3) Shortly after the crisis in 1997, the Korean economy fully recoverd to achieve the high growth rate as it used to. 4) While Korea temporarily suffered from the social disruption right after the shock, including the sharp increase in serial bankruptcies of firms, unemployment rate, divorce rate, suicide rate and so forth, most of the social issues caused by the crisis have been resolved well for the last two decades. 5) The collapse of Thailand Baht in 1997, along with the increasing level of uncertainty of emerging economies in the Asian Pacific regions, had concerned global investors about the high level of debt leverage used by Korean conglomerate firms.
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