No.PZ2025030806000012
来源:
Tugba Aydin Case Scenario
Tugba Aydin is a foreign exchange analyst for a global macro hedge fund. Aydin is considering investment opportunities in Country A and Country B.
Concerned about the recent boom-like conditions in Country A, an emerging market economy, Aydin has established an early warning system to detect a currency crisis. She notes the following trends:
• The ratio of exports to imports has declined
• The ratio of money supply to bank reserves has declined
• The foreign exchange reserves at the central bank have increased
The government of Country A recently proposed a policy which would require that all foreign direct investments be accompanied by a 6-month, non-interest-bearing deposit equal to 25% of the investment value. Aydin considers the objective of this proposal.
No.PZ202503080600001202
来源:
The objective most consistent with the policy proposal in Country A is to:
您的回答B, 正确答案是: C
A
A.attract foreign investment.
B
不正确B.prevent a depreciation of the domestic currency.
C
C.facilitate the pursuit of independent monetary policy.
解析
A Incorrect because such a non-interest-bearing deposit is an attempt to limit the potential damage associated with unrestricted inflows of overseas capital. However, one of the rationales is to limit the inflow of capital, not to attract it.
B Incorrect because such a non-interest-bearing deposit is an attempt to limit the potential damage associated with unrestricted inflows of overseas capital. However, one of the rationales is to prevent the appreciation of the domestic currency, not the depreciation.
C Correct because such a non-interest-bearing deposit is an attempt to limit the potential damage associated with unrestricted inflows of overseas capital. Three possible aims are associated with such measures: (1) prevent currencies from appreciating too strongly, (2) reducing the aggregate volume of capital inflows, (3) enabling monetary authorities to pursue independent monetary policies without having to worry about whether changes in policy rates might attract too much capital from overseas.
