ChatGPT Easily Passed My Finance Exam What Should We Do About It?
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Authors
Wu, Congsheng
Issue Date
2023-03-24
Type
Other
Language
en_US
Keywords
ChatGPT , Financial Course , Exam
Alternative Title
Abstract
ChatGPT, OpenAI's new chat bot, has caused lots of fanfare since its introduction to the public in November 2022. Within the first two months of its launch ChatGPT has more than 100 million users and has more than 13 million daily visitors.
I have encouraged my students to register and use ChatGPT. Since it is based on large language models, ChatGPT can write quality essays on sorts of topics within a few seconds. This amazing capability has raised red flags in some quarters of higher education. In this project, I challenged ChatGPT to see how well it could do in my finance exam. The exam in question is the midterm exam I just gave in my FIN525/International Financial Management class. FIN525 is an introductory course about international financial management with special emphasis on multinational enterprises (MNEs). A MNE is defined broadly as one that is incorporated in one country, but has operating subsidiaries, branches or affiliates located in other countries. Today, almost all large companies are MNEs. The main topics covered in this course include the international monetary system, foreign trade, foreign direct investment, balance of payments, foreign exchange market, exchange rate determination, currency risk management, and global debt and equity financing. It is already known that ChatGPT excels in writing essays. Since this is a finance course, the exam does not have this component. The exam consists of three types of questions: 1) multiple-choice questions, 2) special terminologies used in international finance, and 3) basic calculations with short answers. The questions, correct answers, and answers by ChatGPT are presented on the right. Out of the 20 multiple-choice questions, ChatGPT got 16 correctly. For the ten acronyms related to international finance, ChatGPT got all correctly. This should be the easiest job for a chat bot like ChatGPT. Problem III is related to a well-known phenomenon in international finance: the impossible trinity or trilemma. The trilemma says that out of the three characteristics regarding exchange rates, a country can only choose two, regardless of what currency regime it adopts. ChatGPT did extremely well in the problem. Problem IV involves some basic calculations regarding exchange rates. ChatGPT got it completely wrong in Ql. After given a second chance, it erred again. In Q2 ChatGPT got the correct answer at the second attempt. ChatGPT did very well in Problem V, which is about changes in exchange rates over time. In Problem VI, ChatGPT got the calculations incorrectly. Its answer to Q2, on the other hand, was more than satisfactory.
Problem VII involves a one-time change in exchange rates. ChatGPT messed up with the calculations, but provided a perfect answer to Q2. Overall, ChatGPT scored 85 out of 100. The grade is somewhere between B and B+. It excelled in short answers and most of the multiple-choice questions. However, it did very poorly in problem-solving questions. What should we do about ChatGPT in teaching and learning? This issue is too complicated to be addressed here, and I don't have the answers to this important and urgent question.
Description
UB RISE 2023, Trefz School of Business, University of Bridgeport.