Transcription of SOLUTIONS TO EXERCISES - Princeton University
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SOLUTIONS TO EXERCISES - Princeton University
Princeton University Press . International Finance: Theory Into Practice by Piet Sercu SOLUTIONS TO EXERCISES . magnanimously prepared by Thi Ngoc Tuan Bui, Leuven SB&E. Marian Kane, KBC Bank Fang Liu, Cheung Kong Business School Thi Tuon Van Nguyen, Leuven SB&E. 15:01 on 8 March 2009. 15:01 on 8 March 2009 P. Sercu, SB&E. Foreword Writing the textook itself was an enormous task, over and above my regular work as a teacher, researcher, supervisor and administrator. Fortunately, as far as EXERCISES were concerned I could fall back to a large extent on the predecessor book, Sercu- Uppal's International Financial Markets and the Firm.
7. Under a fixed exchange rate regime, if a country’s private sector sells abroad more than it purchases, the central bank must sell foreign exchange. 8. BOP theory is flawed is because it assumes that investors only invest in risk-free domestic and foreign assets. 3
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