Write a review paper on Finance markets and Institutions

Write a review paper on Finance markets and Institutions
Table 1 shows the components in percentage terms of GDP for US and
China. Calculate the figures that should appear in the boxes marked with a
question mark in Table 1, and critically analyse the main differences between
the two countries’ expenditure. Your answer should be approximately 150 words.
Table 1

CHINA
US

Personal Consumption Expenditures

38
?

Government Consumption Expenditures

16
17

Gross Capital Formation

?
18

Exports

19
13

Imports

16
18

(15 marks)

Question 2
Referring to the national accounting framework, can you expect fast
growing economies like China to run current account deficits or surpluses? Given
the expected current account, what impact could better growth prospects have on
the real exchange rate? Your answer should be approximately 150 words.
(15 marks)

Question 3
Assuming
that when the UK leaves the
European Union area
the following scenarios took place:

UK stops paying $1bn of
contributions to the overseas HQ of the EU
imports fall by $0.5bn and
exports fall by $1bn
Foreign direct investment into UK falls by
$1bn

Calculate what happens to the current account
and overall balance. Explain the formulae you use. Your answer should be approximately 150 words.

(15 marks)
Question 4

In 2021, the US dollar nominal
exchange rate appreciated significantly versus the Euro. Referring to the
appropriate theory, adopt an empirical approach using data which may explain
such move in the currency pair. Your
answer should be approximately 1,500 words.

(55 marks)

Note:
Three brief questions and then a short essay for the
last question 4.
The
last question is empirical in nature, although some theories should be explained/mentioned.
So, think about where to get the data. The best source would be the IFS of the
IMF. However, if you would like to use other providers, that is perfectly fine,
but please mention the sources (references; at least 10).

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