24周年

财税实务 高薪就业 学历教育
APP下载
APP下载新用户扫码下载
立享专属优惠
安卓版本:8.6.82 苹果版本:8.6.82
开发者:北京东大正保科技有限公司
应用涉及权限:查看权限>
APP隐私政策:查看政策>

"economics"exercise:wealth effect

来源: 正保会计网校 编辑:小鞠橘桔 2020/12/23 10:04:15 字体:

学习是一个不断积累的过程,每天学习一点,每天进步一点!为了帮助大家更高效地备考2021年CFA考试,正保会计网校每日为大家上新CFA习题供大家练习。让网校与您一起高效备考2021年CFA考试,梦想成真!

Questions 1:

Which of the following statements is most accurate based on the FX quotations in the table?

economics exercise:wealth effect

A、 The forward rate is trading at a discount to the spot rate by 0.0049 points.

B、 The euro is trading at a forward premium of 49 points.

C、 The US dollar is trading at a forward premium of 49 points.

Questions 2:

 In order to reduce a trade deficit, the government of a country experiencing full employment moves to depreciate its currency. As a result, if the country’s domestic spending declines relative to income, the most likely mechanism that causes this to occur is the:

A、 income effect.

B 、wealth effect.

C、 substitution effect

View answer resolution
【Answer to question 1】B

【analysis】

B is correct. Forward premium = Forward rate – Spot rate = 1.3001 – 1.2952 = 0.0049. To convert to points, scale four decimal places—that is, multiply by 10,000 = 10,000 × 0.0049 = 49 points. Because the forward rate exceeds the spot rate for the base currency (euro), the euro is trading at a forward premium of 49 points. 

C is incorrect. When the forward rate (1.3001) is higher than the spot rate (1.2952), the base currency (EUR) is said to be trading at a forward premium, not a discount, to the price currency (USD). 

A is incorrect. When the forward rate (1.3001) is higher than the spot rate (1.2952), the forward points are positive, and the forward rate is said to be trading at a premium to the spot rate. The wrong number is derived from 1.3001 – 1.2952 = 0.0049. The USD/ EUR is quoted to four decimal places, so it needs to be scaled up by four decimal places or multiplied by 10,000 to 49 points.

【Answer to question 2】B

【analysis】

B is correct. At full employment, a weaker currency reduces the purchasing power of all domestic currency denominated assets (including the present value of current and future income). Households respond by reducing general expenditures and increasing savings. This response is the wealth effect and reflects the proportion of one’s income that is saved (or spent). 

A is incorrect. The income effect arises when the price of a good changes: with currency depreciation, foreign goods are more expensive, so real purchasing power (income) is reduced. 

C is incorrect. The substitution effect refers to the changes in the composition of spending across different product areas. With currency depreciation, less foreign goods relative to domestic goods are purchased.

成功=时间+方法,自制力是这个等式的保障。世上无天才,高手都是来自刻苦的练习。而人们经常只看到“牛人”闪耀的成绩,其成绩背后无比寂寞的勤奋。小编相信,每天都在勤奋练习,即使是一点点的进步,大家一定可以成为人人称赞的“牛人”。

点击了解更多CFA考试资讯>>

免费试听

特许金融分析师限时免费资料

  • CFA报考指南

    CFA报考指南

  • CFA考试大纲

    CFA考试大纲

  • CFA历年

    CFA历年

  • CFA学习计划

    CFA学习计划

  • CFA思维导图

    CFA思维导图

  • CFA备考建议

    CFA备考建议

回到顶部
折叠
网站地图

Copyright © 2000 - www.chinaacc.com All Rights Reserved. 北京东大正保科技有限公司 版权所有

京ICP证030467号 京ICP证030467号-1 出版物经营许可证 京公网安备 11010802023314号

正保会计网校

报考小助理

备考问题
扫码问老师