Week 1 Flashcards

Question

Arbitrageurs investing in foreign assets are exposed to exchange rate risk. a) Discuss how forward contracts mitigate this risk in the context of CIP. b) Analyze the impact of arbitrage activity on the forward exchange rate and explain why this ensures that CIP holds in efficient markets.

Answer 1

a) Forward contracts lock the future exchange rate, eliminating uncertainty in converting foreign returns back to domestic currency. b) Impact of arbitrage:Increased supply of foreign currency in the forward market reduces the forward premium or increases the forward discount.Adjustments in forward and spot rates ensure (1+r)=(1+r∗)⋅(F/S), closing arbitrage opportunities.

Answer 2

a) U.S. GDP: Includes production from both factories because GDP considers location. b) GNP focuses on ownership:Production from a U.S.-owned firm in Mexico contributes to U.S. GNP but not U.S. GDP.Production from a German firm in the U.S. contributes to U.S. GDP but not U.S. GNP.

Answer 3

GNDI includes net unilateral transfers (e.g., remittances, foreign aid) and net factor income from abroad. Example: A country receives $2 billion in remittances from citizens working abroad. This directly boosts disposable income for consumption and savings. GDP doesn't capture these transfers, making GNDI a fuller measure.

Answer 4

When GDP = GNDI: Net factor income abroad and net unilateral transfers = 0. When these are non-zero: GNDI adds these flows to GDP to represent the total income available to a nation's residents.

Answer 5

GNDI includes net factor income and unilateral transfers from abroad. Changes in exchange rates affect their real value.

Answer 6

Unilateral Transfers: Examples include remittances and foreign aid sent without expecting goods/services in return. Factor Income: Income from foreign investments and labor. Key Difference: Unilateral transfers are one-way payments, while factor income involves ownership-related income flows.

Answer 7

GDP: The $1 billion in production does not count towards U.S. GDP because it is produced outside U.S. borders. GNP: The $1 billion does count toward U.S. GNP because it reflects U.S. ownership of production abroad.

Answer 8

Increase in Net Unilateral Transfers: Improves GNDI as it directly increases residents' income without requiring trade-offs in goods/services. Economic Well-being: Higher income allows for better consumption, savings, and investment.

Answer 9

Closed Economy: All national savings are used for domestic investment. Example: In a country with no international trade, all savings would only finance local projects. Open Economy: National savings can be used for domestic or foreign investment. Example: U.S. savings can finance domestic infrastructure projects or invest in foreign markets like European bonds.

Answer 10

Home country saves more than it invests domestically → this excess can be lent to a foreign country.

Answer 11

Foreign countries with trade deficits require financing to pay for excess imports.

Answer 12

National Savings Identity: S−I+T−G=CA. This shows no causal relationship; changes in savings, investment, or government spending can affect CA.

Answer 13

Trade Deficit (CA < 0): Spending exceeds earnings; financed by borrowing or selling assets abroad. Example: The U.S. has run consistent trade deficits, financing these deficits by selling bonds to foreign investors like China. These are asset outflows.

Answer 14

A country with a CA deficit borrows by selling financial assets, such as bonds and stocks, to foreign investors. This leads to capital inflow from foreign investment to support the deficit. Example: The U.S. sells Treasury bonds to China to finance its deficit, leading to increased capital flows into the U.S.

Answer 15

It indicates that a country’s savings are insufficient to finance its investment and government spending without borrowing. Implications: Increased debt from borrowing, reliance on foreign financing, and vulnerability to currency fluctuations. Example: The United States has historically borrowed from foreign countries to maintain its imports.

Answer 16

Capital flows represent the movement of financial assets (e.g., bonds, stocks, loans) across borders. They are linked to trade deficits and surpluses. Example: China’s capital flows into U.S. Treasury bonds (borrowing by the U.S.) finance America’s trade deficits by providing capital.

Answer 17

National savings shortfall → borrowing from abroad → leads to trade deficits and debt accumulation. Example: A nation with low savings like Greece in the Eurozone had to borrow heavily during the 2008 financial crisis, leading to debt dependency and economic austerity measures.

Answer 18

i. Current Account - Services Account: Software services are an intangible export. ii. Capital and Financial Account - Portfolio Investment: Purchasing shares falls under portfolio investments. iii. Capital and Financial Account - Capital Transfers: Debt forgiveness is considered a transfer of asset ownership. iv. Current Account - Unilateral Transfers Account: Remittances are one-way income flows. v. Official Reserves Account: Central bank holdings of foreign assets are recorded here.

Answer 19

An increase in remittances (a component of unilateral transfers) would improve Mexico’s current account balance as these are inflows of funds. For example, if Mexican workers in the US send more money back home, it raises disposable income for households, boosting consumption and potentially contributing to economic growth. However, heavy reliance on remittances can expose the economy to risks if inflows decline.

Answer 20

Capital flight would reduce the capital account surplus as foreign and domestic investors withdraw funds. If the central bank intervenes to stabilize the currency, official reserves would decrease. Short-term impacts include currency depreciation and inflation; long-term consequences could involve reduced foreign investment and slower growth.

Answer 21

a) A BoP surplus means inflows exceed outflows, leading to reserve accumulation, while a deficit indicates reliance on foreign borrowing. b) China’s surplus supported economic growth through reserves and exports. Greece’s deficit required external funding, leading to austerity measures and economic contraction during the crisis.

Answer 22

a) Capital outflows are recorded as a reduction in the capital account balance. b) These outflows reduced foreign reserves, forcing countries to devalue currencies. Currency devaluations led to inflation, reduced purchasing power, and economic contraction, deepening the crisis.

Answer 23

In a floating exchange rate regime: The central bank does not intervene, so ORA = 0 (no changes in official reserves). OSB = 0 because no central bank action adjusts flows, and the market balances via exchange rate changes. Therefore, there is no BoP deficit as imbalances adjust through currency appreciation or depreciation. In a fixed exchange rate regime: The central bank intervenes to maintain the exchange rate, leading to ORA ≠ 0. If OSB < 0, the central bank uses its reserves to cover the deficit, allowing a BoP deficit to exist.

Answer 24

In a fixed exchange rate regime, the central bank actively intervenes by buying or selling foreign reserves to maintain the exchange rate. For example, China historically bought USD to keep the yuan undervalued. In a floating exchange rate regime, such as the US dollar system, the central bank does not intervene, and exchange rates are determined by market forces of supply and demand.

Answer 25

If the US exporter holds euros: The euro supply in the forex market does not increase because the currency is not converted into USD. This action prevents additional depreciation pressure on the euro. The BoP still records the transaction as: Current account: Debit of −€1 (Dutch import). Financial account: Credit of +€1 (export of currency).

Answer 26

A current account deficit means a country imports more than it exports: Demand for foreign currency increases (to pay for imports). Supply of the domestic currency increases (to purchase foreign currency). This imbalance puts downward pressure on the domestic currency, leading to potential depreciation in a floating exchange rate system.

Answer 27

A current account surplus (e.g., Japan): Foreign demand for the domestic currency increases, appreciating the currency and reducing competitiveness of exports. A current account deficit (e.g., the US): Supply of the domestic currency in the forex market increases, depreciating the currency and making exports more competitive. Both surpluses and deficits self-adjust over time through exchange rate changes.

Answer 28

The financial account offsets the current account imbalance: If a country runs a current account deficit, it attracts foreign investments or borrows, creating a financial account surplus. Example: The US often runs a current account deficit, financed by foreign purchases of US assets (e.g., Treasury bonds). This results in a financial account surplus, balancing the BoP

Answer 29

In a fixed exchange rate regime, the central bank uses foreign reserves to maintain the peg: Persistent BoP deficits mean the country imports more than it exports. To support the domestic currency, the central bank sells foreign reserves to meet forex demand. Without corrective policies, reserves may deplete, risking a currency crisis (e.g., Mexico in 1994).

Answer 30

Effects of euro depreciation: Exports become cheaper for foreign buyers, increasing demand for European goods. Imports become more expensive for Europeans, reducing import volumes. Overall, the current account deficit may shrink, illustrating the self-correcting mechanism of a floating exchange rate system.

Answer 31

A BoP surplus occurs when exports and financial inflows exceed imports and outflows: The central bank buys foreign currency to prevent the domestic currency from appreciating. This leads to an accumulation of foreign reserves. Example: China’s persistent trade surplus with the US led to massive foreign reserve accumulation.

Answer 32

In a floating exchange rate regime: Depreciation pressure materializes as the exchange rate fluctuates based on market supply and demand. The BoP adjusts automatically with each transaction, maintaining equilibrium (ORA = 0, OSB = 0). The central bank does not intervene, allowing real-time adjustments in the forex market. Example: A weaker euro increases exports and reduces imports, helping correct a BoP deficit.

Answer 33

Depreciation challenges: Trade effects: Exports become cheaper, and imports more expensive, which can strain domestic consumers. Capital flows: Foreign investors may be deterred, fearing further depreciation and reduced returns. External debt: For countries with foreign currency-denominated debt, repayment costs increase. Example: Argentina's peso depreciation in 2001 worsened its debt crisis as dollar-denominated loans became unmanageable.

Answer 34

In a fixed exchange rate regime: The central bank sells foreign reserves to buy domestic currency. BoP records the intervention as: Official Reserve Account (ORA): +€1 (use of reserves). Capital Account (K): −€1 (capital inflow recorded to balance)

Answer 35

Higher interest rates attract foreign investment, creating a capital inflow: Capital account (K) sees an inflow due to increased demand for domestic assets. Official reserves (ORA) are unaffected as the inflows are market-driven. Example: In the 1990s, the UK used high interest rates to defend the pound before exiting the ERM.

Answer 36

Currency depreciation increases the local currency cost of servicing foreign currency debt: Example: If the euro depreciates against the dollar, repaying USD-denominated loans becomes more expensive in euros. This can strain government budgets and reduce financial stability, especially in highly indebted countries.

Answer 37

Floating regime: Exchange rates are fully market-driven by supply and demand. Example: A rise in demand for euros due to increased EU exports appreciates the euro. Fixed regime: The central bank intervenes to control rates, using reserves or monetary policy to counteract market forces.

Answer 38

The central bank sells foreign reserves to buy domestic currency, defending the peg. If pressure persists (e.g., large capital outflows or trade deficits), reserves can deplete entirely, risking a currency crisis. Example: Thailand’s reserve depletion during the 1997 Asian Financial Crisis forced it to abandon its currency peg.

Answer 39

Investors fear: Further depreciation, reducing the value of their returns in home currency. Economic instability as depreciation can signal fiscal or trade issues. Example: After the Turkish lira depreciated in 2018, foreign investment sharply declined due to perceived risk.

Answer 40

When euros are sold to acquire another currency: Supply of euros increases in the forex market. Excess supply relative to demand puts downward pressure on the euro, causing depreciation. Example: A large trade deficit where the EU imports significantly more than it exports can lead to sustained euro depreciation.

Answer 41

Depleting reserves can lead to: Loss of ability to defend the exchange rate, resulting in forced devaluation. Loss of investor confidence, leading to capital outflows. Currency crises, as experienced by Thailand during the 1997 Asian Financial Crisis. Example: Thailand’s depletion of reserves forced it to abandon its fixed peg, triggering a broader financial collapse.

Answer 42

High interest rates can: Discourage domestic borrowing and investment, slowing economic growth. Increase government debt servicing costs if public debt is substantial. Reduce consumer spending, exacerbating economic contraction. Example: The UK’s high interest rates in the 1990s ERM crisis hurt domestic businesses and led to public backlash before the pound exited the system.

Answer 43

Scenario: The central bank faces reserve depletion and cannot raise rates due to recession risks. Peg collapses, leading to uncontrolled devaluation. Avoidance strategies: Maintain adequate reserve levels. Use capital controls to stem outflows. Transition to a floating exchange rate if maintaining the peg becomes unsustainable. Example: Argentina’s inability to maintain its currency peg in 2001 led to a severe economic and social crisis.

Answer 44

Selling reserves: Pros: Immediate currency support without directly affecting the domestic economy. Cons: Limited by reserve holdings; depletion risks a currency crisis. Raising interest rates: Pros: Attracts foreign capital, boosting reserves indirectly. Cons: Reduces domestic investment and growth, potentially leading to a recession. Example: During the 1997 Asian Financial Crisis, several countries faced the dual challenge of depleted reserves and high rates, causing widespread economic damage.

Answer 45

Interventions are costly because: Selling reserves is unsustainable if pressures persist, risking reserve depletion and forced devaluation. High interest rates harm domestic economic growth and increase debt burdens. Broader implications: Effective BoP management is critical to avoid crises. Policymakers must weigh short-term stability against long-term economic health.

Answer 46

A current account (CA) deficit implies that a country spends more on imports and foreign transfers than it earns from exports and foreign income. To balance the deficit: - The country must attract foreign capital, leading to a positive capital account (K > 0). - This results in borrowing from abroad or selling domestic assets to foreign investors, increasing Net Foreign Debt (NFD). Over time, persistent CA deficits worsen NIIP as foreign liabilities exceed foreign assets. Example: The United States has sustained CA deficits for decades, financed by foreign investors purchasing U.S. assets, making the U.S. the world’s largest debtor nation with a negative NIIP.

Answer 47

In a floating exchange rate regime, BoP = 0 because any imbalance in the current account (CA) is offset by the capital account (K). A CA deficit (CA < 0) is balanced by foreign capital inflows (K > 0). Example: The U.S. consistently has a CA deficit, financed by foreign investors buying U.S. assets (K > 0). While BoP = 0, the sustained CA deficit worsens the U.S.’s NIIP as foreign ownership of U.S. assets increases.

Answer 48

When CA = 0, NIIP can still change due to valuation effects, which reflect changes in the value of existing foreign assets and liabilities. Example (Exchange Rate Changes): If the euro appreciates against the dollar, the dollar value of U.S. assets in the Eurozone increases. Suppose the U.S. owns €100 million in Eurozone stocks; an appreciation of the euro raises the dollar value of these assets, improving U.S. NIIP despite no new asset purchases.

Answer 49

A BoP = 0 simply reflects a balance between the current account (CA) and capital account (K). If BoP = 0 due to persistent CA deficits: 1. Foreign debt increases as the country borrows or sells domestic assets. 2. NIIP worsens over time, making the country more dependent on foreign capital. Example: The U.S. has had a BoP = 0 for years, but sustained CA deficits have made it the largest debtor nation, with a negative NIIP that reflects long-term financial vulnerability.

Answer 50

Depreciation can stabilize or improve NIIP through valuation effects: 1. It increases the local currency value of foreign assets held by domestic residents. 2. Makes existing liabilities relatively cheaper in foreign currency terms. Example: From 2001-2007, the U.S. ran ongoing CA deficits. However, the U.S. dollar depreciated against other currencies, increasing the dollar value of its foreign-held assets. This offset the worsening effect of the CA deficit, keeping NIIP relatively stable.

Answer 51

When a currency depreciates (e.g., euros), foreign buyers find goods cheaper in their own currency (e.g., dollars). This increases demand for exports, enabling exporters to raise prices in the domestic currency to capitalize on higher demand. This leads to increased export revenue and can improve the current account (CA). Example: After the euro depreciated in 2014, European car manufacturers like Volkswagen saw increased sales in the U.S., as their cars became cheaper for American consumers. This boosted Germany's export revenue and improved its CA balance.

Answer 52

Currency depreciation makes a country’s goods cheaper in foreign currencies, increasing their competitiveness. Foreign buyers purchase more, leading to higher export volumes and an improvement in the current account. Example: After the Japanese yen depreciated in 2013, exports of Japanese electronics and vehicles surged due to their reduced prices in foreign markets, positively affecting Japan’s CA.

Answer 53

Depreciation raises the cost of imported goods in the home currency. The country spends more on the same quantity of imports, worsening the CA deficit if import volumes remain steady. Example: Following the depreciation of the British pound after Brexit in 2016, the U.K. saw rising costs for imported goods like oil and food, increasing its import bill and negatively impacting the CA.

Answer 54

Depreciation increases the price of imports in the home currency, leading domestic consumers to reduce their reliance on imports and switch to locally produced goods. This reduces import volumes and improves the CA. Example: After the Argentine peso depreciated in 2018, imports of luxury goods dropped significantly as consumers turned to local alternatives, helping stabilize Argentina's CA.

Answer 55

Depreciation affects exports and imports through four main channels (price and volume effects for both). The net effect depends on the elasticities of demand for exports and imports: High elasticity: Significant increases in export volume and reductions in import volume improve the CA. Low elasticity: Export volumes may not rise enough, and import costs could dominate, worsening the CA. Example: The 2016 pound depreciation initially hurt the U.K.'s CA due to high import costs but later improved due to increased exports of British goods.

Answer 56

High elasticity means that buyers significantly adjust their behavior in response to price changes: Export volumes increase sharply due to lower prices in foreign currencies, boosting export revenue. Import volumes decrease significantly as higher prices discourage domestic consumers, reducing import costs. This combination leads to a strong improvement in the CA. Example: South Korea’s CA benefited after the won depreciated in the early 2000s, as both export volumes surged and import demand fell sharply.

Answer 57

With low elasticity: Export volumes may not increase significantly, limiting revenue growth despite lower prices. Import volumes may remain unchanged, but higher prices lead to increased costs, worsening the CA. Example: In 1997, Thailand's currency depreciation during the Asian Financial Crisis failed to improve its CA quickly due to inelastic demand for key imports like oil.

Answer 58

Currency depreciation makes it more expensive to repay foreign-currency-denominated debt in the home currency. This increases financial strain and can offset any benefits from improved export competitiveness. Example: Argentina faced increased debt servicing costs in 2018 after the peso depreciated, as much of its external debt was denominated in U.S. dollars.

Answer 59

Export price effect: Exporters raise prices in the home currency due to increased foreign demand, boosting revenue. Export volume effect: Lower foreign-currency prices increase export volumes. Together, these effects improve the CA if demand for exports is price-elastic. Example: Post-2014 euro depreciation improved the Eurozone’s CA through both higher-priced exports and increased export volumes in industries like automotive and luxury goods.

Answer 60

The Marshall-Lerner condition states that depreciation improves the CA if the sum of the absolute price elasticities of demand for exports and imports exceeds 1. Example: Elastic markets (e.g., electronics): Depreciation improves the CA, as export demand rises significantly and imports drop sharply. Inelastic markets (e.g., oil): Depreciation may worsen the CA, as import volumes remain steady while costs rise. Japan’s yen depreciation in 2013 improved its CA due to elastic demand for its automotive exports.

Answer 61

A horizontal supply curve implies perfectly elastic supply, where the quantity supplied can increase or decrease without any change in price. In this scenario: Exports (X): Export prices (Px) are fixed in the home currency. Thus, only changes in foreign demand influence export volumes. Imports (M): Import prices (Pm) are fixed in the foreign supplier's currency. Changes in home demand determine import volumes. Example: A German car exported to the U.S. is always priced at €30,000 in euros, regardless of how many units the U.S. imports. The U.S. demand alone determines the volume of exports.

Answer 62

The price elasticity of export demand (ηx) measures how sensitive export volume (x) is to changes in the foreign price of exports (Px*). Under the horizontal supply curve: A higher ηx means small changes in Px* cause large changes in x. A lower ηx means export volumes are less responsive to price changes. Example: If ηx = 2 for European wine exports, a 5% decrease in the price of wine in dollars (Px*) would lead to a 10% increase in U.S. demand for European wine.

Answer 63

Under this assumption, exporters supply as much as demanded at a fixed price in the home currency. Export prices do not change, even if demand increases or decreases. Implications: Export revenue depends only on export volume (not price changes). Exporters face greater risk if foreign demand collapses because they cannot raise prices to compensate. Example: A Brazilian coffee exporter sells coffee at a fixed price of BRL 100 per unit, regardless of demand fluctuations in international markets.

Answer 64

With horizontal supply curves: The price of imports (Pm) is fixed in the supplier's currency. Import volumes (M) depend only on the price elasticity of import demand (ηm) and changes in domestic demand. Example: If ηm for smartphones is -1.5, a 10% increase in the price of imported smartphones in the home currency leads to a 15% decrease in import volume.

Answer 65

ηx (price elasticity of export demand): Indicates how sensitive export volumes are to changes in foreign prices. Higher ηx implies exports are highly responsive to price changes, benefiting from lower foreign prices. ηm (price elasticity of import demand): Indicates how sensitive import volumes are to changes in home prices. Higher ηm suggests consumers will drastically reduce imports when prices rise. Example: A country with high ηx and ηm will experience significant trade volume changes when exchange rates fluctuate.

Answer 66

When Pm rises due to depreciation: High ηm: Import volumes drop significantly, reducing import expenditures and improving the current account. Low ηm: Import volumes remain relatively constant, worsening the current account due to higher import costs. Example: After the Indian rupee depreciated in 2018, the price of imported oil rose. Since oil has low ηm (inelastic demand), import volumes did not drop significantly, worsening India's trade deficit

Answer 67

If the foreign currency appreciates, the price of exports in foreign currency (Px*) decreases: High ηx: Export volumes increase significantly, boosting trade revenue. Low ηx: Export volumes change marginally, limiting revenue growth. Example: The yen depreciation in 2013 caused Japanese electronics to become cheaper in foreign markets, leading to a sharp increase in exports due to high ηx in the electronics sector.

Answer 68

Under horizontal supply: Prices remain constant, so policymakers must focus on factors affecting demand (e.g., exchange rate adjustments or trade agreements). Elasticities (ηx and ηm) determine the effectiveness of such measures. Example: A depreciation of the British pound after Brexit improved export demand for U.K. goods (high ηx) but had a limited impact on reducing oil imports (low ηm).

Answer 69

Horizontal supply curves assume perfect elasticity, which is rarely true due to: Supply constraints (e.g., production capacity limits). Price adjustments by producers in response to demand changes. Market imperfections like tariffs or trade barriers. Example: In 2021, supply chain disruptions caused semiconductor prices to rise significantly, contradicting the horizontal supply assumption and affecting global trade volumes.

Answer 70

Currency depreciation (increase in S) makes exports cheaper and imports more expensive, affecting the CA via the Marshall-Lerner condition: Marshall-Lerner: If ηx + ηm > 1, the volume effect dominates, and CA improves. Numerical Example: Suppose ηx = 0.8 and ηm = 0.4. Then ηx + ηm = 1.2 > 1 → CA improves as depreciation increases export demand and reduces import demand.

Answer 71

Price Effect: Export prices (Px): Constant → no impact on CA. Import prices (Pm): Rise with depreciation → negative impact on CA. Net Price Effect: 0 - 1 = -1 → Negative overall impact. Thus, without a strong volume effect, the CA worsens due to increased import costs.

Answer 72

When ηx + ηm < 1, the price effect dominates because the change in volumes (exports and imports) is not significant enough to offset the increased cost of imports. Example: In the 1980s, the U.S. experienced persistent trade deficits despite dollar depreciation because import volumes remained high (low ηm) while export growth was sluggish (low ηx).

Answer 73

Short-Run: Limited change in export/import volumes due to contracts, habits, and production constraints. Import costs rise immediately, worsening the CA. Long-Run: Export volumes rise, and import volumes fall as buyers adjust to new prices. Positive volume effect improves the CA. Example: The J-Curve effect describes this pattern: initial CA deterioration followed by improvement over time

Answer 74

Calculation: ηx + ηm = 0.6 + 0.8 = 1.4 > 1. Since ηx + ηm > 1, the volume effect dominates the price effect, and CA will improve with a 10% depreciation as exports rise and imports fall.

Answer 75

High absolute import volumes mean that even small price increases significantly raise total import expenditures. Example: If the U.S. spends $1 trillion annually on imports, a 10% price rise adds $100 billion to costs, potentially offsetting gains from higher exports.

Answer 76

In a surplus, the negative price effect is minimal because imports are low relative to exports. Depreciation makes exports even more attractive, boosting export volumes and sustaining the surplus. Example: China’s export-driven economy benefited from a weaker yuan in the early 2000s, maintaining large trade surpluses.

Answer 77

The elasticity approach indicates that policymakers should focus on increasing ηx and ηm to ensure ηx + ηm > 1. Measures include improving export competitiveness and reducing dependency on inelastic imports. Example: South Korea diversified exports and reduced energy import reliance, enabling better CA adjustment post-1997 currency crisis.

Answer 78

Example: Assume ηx = 0.5, ηm = 0.6. dCA/dS = 0.5 + 0.6 – 1 = 0.1 > 0. A 5% depreciation improves the CA slightly (5% × 0.1 = 0.5% improvement). If ηx = 0.3 and ηm = 0.4, then dCA/dS = -0.3 → CA worsens.

Answer 79

Initial Decline: Import costs rise before export and import volumes adjust. Delayed Improvement: Export volumes rise, and import volumes fall as contracts expire and buyers adapt. Example: After the 1992 sterling devaluation, the U.K. initially saw a worsening trade deficit, followed by gradual improvement as exports surged.

Week 1 Flashcards

(103 cards)