题目内容（请给出正确答案）

[主观题]

The Euro skeptics contend that the risks of monetary union far outweigh any advantages it

may bring. Since exchange rates can (1)_____ be used to offset the strains of different economic conditions prevailing in various member countries, growth and employment problems are inevitable, they say. The resulting political pressures will (2)_____ to demands for large intra-union (3)_____ payments. And (4)_____ political resistance to such payments is inevitable, skeptics regard the EMU as a (5)_____ to further European integration.

The (6)_____ of the EMU is groundless. The countries that will soon formally renounce the right to adjust their nominal exchange rates are not (7)_____ up anything they have not already voluntarily surrendered as part of preparations for monetary union. In the past years not one of the 11 founding members of EMU has (8)_____ in order to enhance its (9)_____. What better proof of the determination and (10)_____ of the European countries to form. an economic and monetary union？

The claims by Euro skeptics that the (11)_____ to EMU membership have sacrificed growth and employment in order to fulfill the convergence criteria don't hold water.(12)_____, government spending of over 50 percent of GDP and taxes and social (13)_____ contributions of over 40 percent were clear (14)_____ that many countries had widely (15)_____ from being market economies. True, the plan for monetary union (16)_____ countries to get their public finances in (17)_____. But such reforms—to put fiscal and social policies on a healthy, economic footing would have been indispensable anyway.

Only with a common currency will the EU's single market develop its full dynamic potential. The euro will make pricing more transparent, (18)_____ in greater competition and, (19)_____, stronger growth. The days will be over (20)_____, for want of competition, Europe's economies became rigid and inflexible.

A．on no account

B．no longer

C．without exception

D．in vain

提问人：网友zhb_999 发布时间：2022-01-07

参考答案

查看官方参考答案

如搜索结果不匹配，请联系老师获取答案

您可能会需要：

重置密码查看订单联系客服

安装简答题APP，拍照搜题省时又省心！

更多“The Euro skeptics contend that…”相关的问题

第1题

The following scenario relates to questions 1 to 5.

Herd Co is based in a country whose currency is the dollar ($). The company expects to receive €1,500,000 in six months’ time from Find Co, a foreign customer. The finance director of Herd Co is concerned that the euro (€) may depreciate against the dollar before the foreign customer makes payment and she is looking at hedging the receipt.

Herd Co has in issue loan notes with a total nominal value of $4 million which can be redeemed in 10 years’ time. The interest paid on the loan notes is at a variable rate linked to LIBOR. The finance director of Herd Co believes that interest rates may increase in the near future.

The spot exchange rate is €1·543 per $1. The domestic short-term interest rate is 2% per year, while the foreign short-term interest rate is 5% per year.

What is the six-month forward exchange rate predicted by interest rate parity？

A.€1·499 per $1

B.€1·520 per $1

C.€1·566 per $1

D.€1·588 per $1

As regards the interest rate risk faced by Herd Co, which of the following statements is correct？A.In exchange for a premium, Herd Co could hedge its interest rate risk by buying interest rate options

B.Buying a floor will give Herd Co a hedge against interest rate increases

C.Herd Co can hedge its interest rate risk by buying interest rate futures now in order to sell them at a future date

D.Taking out a variable rate overdraft will allow Herd Co to hedge the interest rate risk through matching

Which of the following hedging methods will NOT be suitable for hedging the euro receipt？A.Forward exchange contract

B.Money market hedge

C.Currency futures

D.Currency swap

Which of the following statements support the finance director’s belief that the euro will depreciate against the dollar？

(1) The dollar inflation rate is greater than the euro inflation rate

(2) The dollar nominal interest rate is less than the euro nominal interest rate

A.1 only

B.2 only

C.Both 1 and 2

D.Neither 1 nor 2

As regards the euro receipt, what is the primary nature of the risk faced by Herd Co？A.Transaction risk

B.Economic risk

C.Translation risk

D.Business risk

点击查看答案

第2题

The following scenario relates to questions1 to 5.Herd Co is based in a country whose curr

The following scenario relates to questions 1 to 5.

Herd Co is based in a country whose currency is the dollar ($). The company expects to receive €1,500,000 in six months’ time from Find Co, a foreign customer. The finance director of Herd Co is concerned that the euro (€) may depreciate against the dollar before the foreign customer makes payment and she is looking at hedging the receipt.

Herd Co has in issue loan notes with a total nominal value of $4 million which can be redeemed in 10 years’ time. The interest paid on the loan notes is at a variable rate linked to LIBOR. The finance director of Herd Co believes that interest rates may increase in the near future.

The spot exchange rate is €1·543 per $1. The domestic short-term interest rate is 2% per year, while the foreign short-term interest rate is 5% per year.

What is the six-month forward exchange rate predicted by interest rate parity？

A.€1·499 per $1

B.€1·520 per $1

C.€1·566 per $1

D.€1·588 per $1

As regards the interest rate risk faced by Herd Co, which of the following statements is correct？A.In exchange for a premium, Herd Co could hedge its interest rate risk by buying interest rate options

B.Buying a floor will give Herd Co a hedge against interest rate increases

C.Herd Co can hedge its interest rate risk by buying interest rate futures now in order to sell them at a future date

D.Taking out a variable rate overdraft will allow Herd Co to hedge the interest rate risk through matching

Which of the following hedging methods will NOT be suitable for hedging the euro receipt？A.Forward exchange contract

B.Money market hedge

C.Currency futures

D.Currency swap

Which of the following statements support the finance director’s belief that the euro will depreciate against the dollar？

(1) The dollar inflation rate is greater than the euro inflation rate

(2) The dollar nominal interest rate is less than the euro nominal interest rate

A.1 only

B.2 only

C.Both 1 and 2

D.Neither 1 nor 2

As regards the euro receipt, what is the primary nature of the risk faced by Herd Co？A.Transaction risk

B.Economic risk

C.Translation risk

D.Business risk

请帮忙给出每个问题的正确答案和分析，谢谢！

点击查看答案

第3题

GXJ Co, whose home currency is the dollar, wishes to borrow €12 million for a period of si

x months in three months’ time. The lending bank will fix the interest rate for the loan period at its prevailing lending interest rate when the loan is taken out. The finance director of GXJ Co believes this lending interest rate could be a minimum of 3·5% per year or a maximum of 5·5% per year. The uncertainty regarding the future interest rate is caused by the volatile state of the economy and impending elections which could lead to a change in political leadership and direction. Interest on the euro loan would be payable at the end of the loan period.

The finance director of GXJ Co would like to hedge the interest rate risk arising from the future loan and the company’s bank has offered a 3–9, 4·5%–3·5% forward rate agreement.

The finance director is also concerned about the foreign currency risk associated with the euro interest payment which would be due in nine months’ time.

The following exchange rates are available:

GXJ Co, whose home currency is the dollar, wishes

Required:

(a) Evaluate the proposed forward rate agreement as a way of managing the interest rate risk anticipated by GXJ Co. (3 marks)

(b) Analyse the foreign currency risk associated with the future interest payment of GXJ Co and briefly discuss ways that this risk might be hedged. (4 marks)

(c) Explain the nature of four-way equivalence in the relationship between spot exchange rates, forward exchange rates and future (expected) spot rates. (3 marks)

点击查看答案

第4题

Alecto Co, a large listed company based in Europe, is expecting to borrow €22,000,000 in f

our months’ time on 1 May 2012. It expects to make a full repayment of the borrowed amount nine months from now. Currently there is some uncertainty in the markets, with higher than normal rates of inflation, but an expectation that the inflation level may soon come down. This has led some economists to predict a rise in interest rates and others suggesting an unchanged outlook or maybe even a small fall in interest rates over the next six months.

Although Alecto Co is of the opinion that it is equally likely that interest rates could increase or fall by 0·5% in four months, it wishes to protect itself from interest rate fluctuations by using derivatives. The company can borrow at LIBOR plus 80 basis points and LIBOR is currently 3·3%. The company is considering using interest rate futures, options on interest rate futures or interest rate collars as possible hedging choices.

The following information and quotes from an appropriate exchange are provided on Euro futures and options. Margin requirements may be ignored.

Three month Euro futures, €1,000,000 contract, tick size 0·01% and tick value €25

March 96·27

June 96·16

September 95·90

Options on three month Euro futures, €1,000,000 contract, tick size 0·01% and tick value €25. Option premiums are in annual %.

Alecto Co, a large listed company based in Europe,

It can be assumed that settlement for both the futures and options contracts is at the end of the month. It can also be assumed that basis diminishes to zero at contract maturity at a constant rate and that time intervals can be counted in months.

Required:

(a) Briefly discuss the main advantage and disadvantage of hedging interest rate risk using an interest rate collar instead of options. (4 marks)

(b) Based on the three hedging choices Alecto Co is considering and assuming that the company does not face any basis risk, recommend a hedging strategy for the €22,000,000 loan. Support your recommendation with appropriate comments and relevant calculations in €. (17 marks)

(c) Explain what is meant by basis risk and how it would affect the recommendation made in part (b) above. (4 marks)

点击查看答案

第5题

Despite the true remarkable benefits of DNA testing, some skeptics have questioned whether

it is sufficiently regulated and reliable.

点击查看答案

第6题

What is the skeptics （Line 3. Para. 3) view of media violence？ A) Violence on televis

What is the skeptics (Line 3. Para. 3) view of media violence？

A) Violence on television is a fairly accurate reflection of real-world life.

B) Most studies exaggerate the effect of media violence on the viewers.

C) A causal relationship exists between media and real-world violence.

D) The influence of media violence on children has been underestimated.

点击查看答案

第7题

Thus, global-warming skeptics write off the______of climate research investigators, emphas

izing the______of others' reasoning, but not of their own.

A．data… accessibility

B．infighting … vagueness

C．resources… virtues

D．experiments … pragmatism

E．consensus … uncertainty

点击查看答案

第8题

As for winning over skeptics, the author would most likely suggest______.A．collecting a hu

As for winning over skeptics, the author would most likely suggest______.

A．collecting a huge amount of data showing global warming

B．presenting global warming in a more agreeable way

C．offering guidance in approaching to global warming objectively

D．providing more and better science on global warming

点击查看答案

第9题

Thus, global-warming skeptics write off the ______ of climate research investigators, emph

asizing the ______ of others' reasoning, but not of their own.

A．data… accessibility

B．infighting … vagueness

C．resources … virtues

D．experiments … pragmatism

E．consensus … uncertainty

点击查看答案

第10题

Skeptics have debated whether welfare rights, including those to medical care or employmen

t training,______solidarity and fellow-feeling, or whether they erode initiative and______dependency.

A．decrease … encourage

B．affect… reject

C．retract… invite

D．control … diminish

E．express… inculcate

点击查看答案

警告：系统检测到您的账号存在安全风险

为了保护您的账号安全，请在“简答题”公众号进行验证，点击“官网服务”-“账号验证”后输入验证码“”完成验证，验证成功后方可继续查看答案！

微信搜一搜

简答题

点击打开微信

警告：系统检测到您的账号存在安全风险

抱歉，您的账号因涉嫌违反简答题购买须知被冻结。您可在“简答题”微信公众号中的“官网服务”-“账号解封申请”申请解封，或联系客服。

微信搜一搜

简答题

点击打开微信