The Foreign Exchange Market

# 第17章 The Foreign Exchange Market

## 章节概览
The purpose of this chapter is to present the foreign exchange market and exchange rates, with an emphasis on spot exchange rates. Foreign exchange is the act of trading different countries' moneys. An exchange rate is the price of one money in terms of another. The spot exchange rate is the price for "immediate" exchange. The forward exchange rate is the price agreed to today for exchanges that will take place in the future.

## 知识点
### 1. The Basics of Currency Trading
- 教学说明：The purpose of this chapter is to present the foreign exchange market and exchange rates, with an emphasis on spot exchange rates. Foreign exchange is the act of trading different countries' moneys. An exchange rate is the price of one money in terms of another. The spot exchange rate is the price for "immediate" exchange.
- 支撑要点：Foreign exchange
- 支撑要点：is the act of trading different nations’ moneys.
- 来源类型：manual

### 2. Demand and Supply for Foreign Exchange
- 教学说明：We can picture the foreign exchange market by using demand and supply curves. Exports of goods and services and capital outflows (as well as income payments to foreigners) create a demand for foreign currency, as payments for these items typically require that at some point in the payment process the home currency is exchanged for the foreign currency to pay for the items that the home residents are buying.
- 支撑要点：Within the foreign exchange market, people want to trade moneys by trading in goods, services, and financial assets.
- 支撑要点：A nation’s export of goods, services, and financial assets typically causes foreign moneys to be sold to buy that nation’s money.
- 支撑要点：Thus, U.S. exports of goods, services, and financial assets create a supply of foreign currency and a demand for U.S. dollars.
- 来源类型：manual

### 3. Arbitrage Within the Spot Exchange Market
- 教学说明：The chapter concludes by introducing the two different kinds of arbitrage that can occur using the spot foreign exchange market. The simpler form is arbitrage of the same exchange rate between two locations. This arbitrage assures that, at a particular time, the same exchange rate is essentially the same value in different locations (at least within a small range that reflects transactions costs).
- 支撑要点：Arbitrage:
- 支撑要点：The process of buying and selling to make a (nearly) riskless pure profit
- 支撑要点：Ensures that exchange rate values in different locations are essentially the same.
- 来源类型：manual

### 4. Using the Foreign Exchange Market
- 教学说明：The purpose of this chapter is to present the foreign exchange market and exchange rates, with an emphasis on spot exchange rates. Foreign exchange is the act of trading different countries' moneys. An exchange rate is the price of one money in terms of another. The spot exchange rate is the price for "immediate" exchange.
- 支撑要点：The Foreign Exchange Market
- 来源类型：manual

### 5. Interbank Foreign Exchange Trading
- 教学说明：At the center of the foreign exchange market are a group of banks that use computers and telecommunications to conduct trades with their customers (the retail part of the market) and with each other (the interbank part of the market). Most foreign exchange trades are conducted by exchanging ownership of demand deposits denominated in different currencies.
- 支撑要点：Participation in the interbank (or interdealer) part of the market provides a bank with a continuous stream of information on conditions in the foreign exchange market through communications with traders at other banks and through observing quoted prices.
- 支撑要点：Interbank trading allows a bank to readjust its own position quickly and at a low cost.
- 支撑要点：It also permits a bank to take on a position in a foreign currency quickly if the bank and its traders want to speculate on exchange-rate movements in the near future.
- 来源类型：manual

### 6. Floating Exchange Rates
- 教学说明：The purpose of this chapter is to present the foreign exchange market and exchange rates, with an emphasis on spot exchange rates. Foreign exchange is the act of trading different countries' moneys. An exchange rate is the price of one money in terms of another. The spot exchange rate is the price for "immediate" exchange.
- 支撑要点：Under a
- 支撑要点：floating exchange-rate
- 支撑要点：system, the spot price of foreign currency is market-determined by the interaction of private demand and supply for that currency. The market clears itself through the price mechanism.
- 来源类型：manual

### 7. Fixed Exchange Rates
- 教学说明：The purpose of this chapter is to present the foreign exchange market and exchange rates, with an emphasis on spot exchange rates. Foreign exchange is the act of trading different countries' moneys. An exchange rate is the price of one money in terms of another. The spot exchange rate is the price for "immediate" exchange.
- 支撑要点：Under a
- 支撑要点：fixed exchange-rate system
- 支撑要点：government monetary authorities keep the exchange-rate value fixed (or pegged), even if the rate they choose differs from the current market equilibrium rate.
- 来源类型：manual

## 案例
### 案例 1: 4.The U.S. firm obtains a quotation from its bank on the ...
4.The U.S. firm obtains a quotation from its bank on the spot exchange rate for buying yen with dollars. If the rate is acceptable, the firm instructs its bank that it wants to use dollars from its dollar checking account to buy 1 million yen at this spot exchange rate. It also instructs its bank to send the yen to the bank account of the Japanese firm.

### 案例 2: The text explains the downward slope of the demand curve for ...
The text explains the downward slope of the demand curve for foreign currency through changes in the dollar price of products that the home country might buy from the foreign country, as the going spot exchange rate would be one or another value. (The text assumes that the supply curve slopes upward, without much discussion at this point.

### 案例 3: Suggested answers to case study discussion question Foreign Exchange Tra ...
Suggested answers to case study discussion question Foreign Exchange Trading: In Europe there is one major location for foreign exchange trading, London. In North America (really, the Americas, or the Western Hemisphere) there is one major location, New York. Asia is different, it has three locations that are all about equal in size—Tokyo (Japan), Singapore, and Hong Kong.

### 案例 4: b.Demand for yen. The U.S. import company probably begins with dollars ...
b.Demand for yen. The U.S. import company probably begins with dollars, and the Japanese producer probably wants to receive payments in yen. Dollars must be sold to obtain yen.

## 习题
### 题目 1
Which of the following refers to foreign exchange?
- A) The act of trading different nations' moneys
- B) The holdings of foreign assets
- C) The act of exchanging goods and services internationally
- D) The adoption of foreign trade policies

### 题目 2
If the price of British pounds in terms of U.S. dollars is $1.80 per pound, then the price of U.S. dollars in terms of British pounds is
- A) £1.80 per dollar.
- B) £0.556 per dollar.
- C) £0.90 per dollar.
- D) £3.60 per dollar.

### 题目 3
The exchange rate set for an immediate trade is often referred to as a
- A) managed exchange rate.
- B) pegged exchange rate.
- C) forward exchange rate.
- D) spot exchange rate.

### 题目 4
The exchange rate that is set now for a currency trade that will take place sometime more than a few days in the future is often referred to as a
- A) spot exchange rate.
- B) forward exchange rate.
- C) pegged exchange rate.
- D) managed exchange rate.

### 题目 5
The retail part of the foreign exchange market does not include traders at banks trading with
- A) national governments.
- B) stock brokers who trade in the assets of the firms in different nations.
- C) traders at other banks.
- D) nonfinancial companies that sometimes want to buy and sell different currencies.

### 题目 6
Which of the following is true of foreign exchange markets?
- A) The foreign exchange market is a single gathering place where traders shout buy-and-sell orders at each other.
- B) Individuals' exchanges of currencies comprise the largest portion of overall foreign exchange trading.
- C) The laws of demand and supply are not applicable in a foreign exchange market.
- D) Most foreign exchange trading involves the exchange of U.S. dollars for other currencies.

### 题目 7
The U.S. dollar is called a ________ because it is often used as an intermediary to accomplish trading between two other currencies.
- A) vehicle currency
- B) main currency
- C) common currency
- D) primary currency

### 题目 8
Suppose the dollar per pound exchange rate is $2 per pound while the dollar per Swiss franc exchange rate is 50 cents per franc. From the given information we can conclude that the Swiss franc per pound exchange rate is
- A) 1 franc per pound.
- B) too low.
- C) too high.
- D) 4 francs per pound.

## 参考答案
- 题目 1: 答案：A | 选项内容：The act of trading different nations' moneys | Topic：The Basics of Currency Trading | Difficulty：1 Easy
- 题目 2: 答案：B | 选项内容：£0.556 per dollar. | Topic：The Basics of Currency Trading | Difficulty：1 Easy
- 题目 3: 答案：D | 选项内容：spot exchange rate. | Topic：The Basics of Currency Trading | Difficulty：1 Easy
- 题目 4: 答案：B | 选项内容：forward exchange rate. | Topic：The Basics of Currency Trading | Difficulty：1 Easy
- 题目 5: 答案：C | 选项内容：traders at other banks. | Topic：The Basics of Currency Trading | Difficulty：1 Easy
- 题目 6: 答案：D | 选项内容：Most foreign exchange trading involves the exchange of U.S. dollars for other currencies. | Topic：The Basics of Currency Trading | Difficulty：2 Medium
- 题目 7: 答案：A | 选项内容：vehicle currency | Topic：The Basics of Currency Trading | Difficulty：1 Easy
- 题目 8: 答案：D | 选项内容：4 francs per pound. | Topic：The Basics of Currency Trading | Difficulty：2 Medium

## AI / NextLab 使用建议
- Mundell Trilemma Lab：将《The Foreign Exchange Market》对应的理论或政策机制放到贸易分析实验室中做交互式验证。 https://digitconnection.ai/nextlab/