Ifm Exam
1
School of Economics and Management /HES
Exam International Financial Markets (IFM)
Exam Code IFMVH2EL05
Group 3IBL-REST
Semester : 2 Date : 27 May 2011
Time : 11:45 – 13:45
Lecturer : C. Rensen (REC)
Allowed : dictionary, writing materials
The exam contains 15 open questions (3 points each; your grade = (Total number of points + 5) / 5
* Write your name, group and student number on every separate answer sheet you use. * You may take this question booklet with you when you leave.
EXPLAIN YOU ANSWERS PROPERLY!!!
From the Financial Times, May 5 2011: Euro falls as Trichet signals no rate rise
The euro retreated sharply from a 17-month peak against the dollar and a 13-month high against the pound as Trichet, president of the European Central Bank, signaled that the interest rate on the main refinancing operations would remain on hold next month. Analysts said the single currency had received support in recent weeks since the ECB, in contrast to the Federal Reserve and the Bank of England, was seen as being ready to tighten monetary policy further in the coming months in a bid to stem inflationary pressures in the eurozone. 1. What’s meant with the statement that the single currency (euro) had received support in recent weeks since the ECB was seen as being ready to tighten monetary policy further in the coming months in a bid to stem inflationary pressures in the eurozone? 2. Explain why the euro depreciated against the dollar as Trichet signaled that the euro zone interest rates would remain on hold next month. 3. Explain how the ECB can stem inflation pressure by increasing the interest rate on the main refinancing operations.
A month earlier Mr. Trichet explained that the gradual increase in the growth rate of the money stock (M3) might facilitate the accommodation of price pressure (inflation) in the eurozone. 4. Explain how an increase in the growth rate of the money stock can increase
School of Economics and Management /HES
Exam International Financial Markets (IFM)
Exam Code IFMVH2EL05
Group 3IBL-REST
Semester : 2 Date : 27 May 2011
Time : 11:45 – 13:45
Lecturer : C. Rensen (REC)
Allowed : dictionary, writing materials
The exam contains 15 open questions (3 points each; your grade = (Total number of points + 5) / 5
* Write your name, group and student number on every separate answer sheet you use. * You may take this question booklet with you when you leave.
EXPLAIN YOU ANSWERS PROPERLY!!!
From the Financial Times, May 5 2011: Euro falls as Trichet signals no rate rise
The euro retreated sharply from a 17-month peak against the dollar and a 13-month high against the pound as Trichet, president of the European Central Bank, signaled that the interest rate on the main refinancing operations would remain on hold next month. Analysts said the single currency had received support in recent weeks since the ECB, in contrast to the Federal Reserve and the Bank of England, was seen as being ready to tighten monetary policy further in the coming months in a bid to stem inflationary pressures in the eurozone. 1. What’s meant with the statement that the single currency (euro) had received support in recent weeks since the ECB was seen as being ready to tighten monetary policy further in the coming months in a bid to stem inflationary pressures in the eurozone? 2. Explain why the euro depreciated against the dollar as Trichet signaled that the euro zone interest rates would remain on hold next month. 3. Explain how the ECB can stem inflation pressure by increasing the interest rate on the main refinancing operations.
A month earlier Mr. Trichet explained that the gradual increase in the growth rate of the money stock (M3) might facilitate the accommodation of price pressure (inflation) in the eurozone. 4. Explain how an increase in the growth rate of the money stock can increase