TRƯỜNG ĐẠI HỌC NGOẠI THƯƠNG ĐỀ THI KẾT THÚC HỌC PHẦN

CƠ SỞ II TẠI TP. HỒ CHÍ MINH Học kỳ II Năm học 2017 – 2018

BỘ MÔN NGHIỆP VỤ
Môn thi: TIỀN TỆ - NGÂN HÀNG Thời gian: 60 phút Mã lớp: xxx
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Đề thi gồm 05 trang
INSTRUCTIONS TO STUDENTS:
The exam consists of 5 short questions and 20 multiple choice questions.
The duration of the exam is 60 minutes. DO NOT OPEN the exams until you are told to do so
and STOP writing when you are told that the exam is over. This is a CLOSED BOOK exam.

SECTION A. SHORT QUESTIONS (6 points)

A1. Short questions (3 points)
Answer three (03) questions only in this section. Each question in this section is worth 1
point.
1. Open market purchase will always cause a decrease in the Fed funds rate. Comment on this.
2. Using both the supply and demand for bonds and liquidity preference frameworks, show
what the effect is on interest rates when the riskiness of bonds rises. Are the results the same
in the two frameworks?
3. Why has the development of overnight loan markets made it more likely that banks will
hold fewer excess reserves?
4. If there were an increase in interest rates, would you rather be holding long-term or short-
term bonds? Why?
5. What bank regulation is designed to reduce moral hazard problems created by deposit
insurance? Describe TWO regulations. Will they completely eliminate the moral hazard
problems?

A2. Challenging questions (3 points)

Answer two (02) question only in this section. Each question in this section is worth 1.5 point.
6. During the Great Depression years, 1930–3, the currency ratio c rose dramatically.
However, in the recent Global Financial Crisis 2007-2009, the currency ratio remained
unchanged. Explain the difference.
7. “US stocks took a further steep plunge on Monday (5 Feb 2018), with the Dow Jones
industrial average dropping 1,175 points, the largest one-day points fall on record and
erasing all the gains made so far this year. The drop came after another bad day on global
markets as investors reacted to global equity losses overnight and concern that central
banks will increase interest rates in response to inflationary pressures from surging global
economies.” Explain this.
8. “In the subprime crisis, major central banks have intervened aggressively to provide
liquidity to contain disruptions and contagion in financial markets. At the same time, the
U.S. Federal Reserve has cut interest rates substantially to ease monetary conditions, and
the U.S. Congress has approved a fiscal stimulus package. In the Asian 1997 – 1998 crisis,
monetary and fiscal policies were initially tightened to support exchange rates. Only after
exchange rates had stabilized at a lower level did governments adopt more expansionary
fiscal policies to support the real economies” (Ee and Xiang, 2008). Explain this difference
in policy responses to financial crisis.

SECTION B. MULTIPLE CHOICE QUESTIONS (4 points)

There are 20 questions in this section. Answer ALL questions. Give ONE answer only for each
question. Each question is worth 0.2 points.