Bader shifts her focus to currency expectations relative to clients’ base currency and summarizes her assumptions in Exhibit 1.
During a conversation about Exhibit 1, Bader and her research assistant discuss the composition of each country’s currency portfolio and the potential for triggering a crisis. Bader notes that some flows and holdings are more or less supportive of the currency, stating that investments in private equity make up the majority of Country
A’s currency portfolio, investments in public equity make up the majority of Country B’s currency portfolio, and investments in public debt make up the majority of Country C’s currency portfolio.
（1）Based only on the emerging markets discussion, developments in which of the following areas most likely signal increasing risk for Country B’s equity market?
A Politics B Competitiveness C Accounting standards
答案：A
（2）Based on Exhibit 1, which country’s central bank is most likely to buy domestic bonds near term to sterilize the impact of money flows on domestic liquidity?
A 、Country A B 、Country B C、 Country C
答案：B
buy bond：央行释放流动性，实行宽松的货币政策，货币供给增加，本币不是应该贬值吗？怎么去抵消hot money outflow带来的货币贬值？
