2020年金融英语(FECT)证书考试模拟题1(英语学习).doc
(原)金融专业英语(FECT)中级会计模拟试卷1(题后含答案及解析)
（原）金融专业英语（FECT）中级会计模拟试卷1(题后含答案及解析)题型有：1. SECTION ONE 2. SECTION TWOSECTION ONE Answer all questions in this section.Question 11．For purpose of recording accounting information, each company is considered to be separate from its owners and all other companies. This concerns the entity concept.A．正确B．错误正确答案：A2．In an inflation economy, the inventory ending balance recorded by FIFO method is lower than that recorded by LIFO method.A．正确B．错误正确答案：B解析：In an inflation economy, the inventory ending balance recorded by FIFO method is higher than that recorded by LIFO method.3．If the purchaser has been given a purchase allowance, the amount of allowance should be debited to purchase return account.A．正确B．错误正确答案：B解析：If the purchaser has been given a purchase allowance, the amount of allowance should be credited to purchase return account.4．In long-term construction contracts, revenue is recognized at the point of the cash collected.A．正确B．错误正确答案：B解析：In long-term construction contracts, revenue is recognized in proportion tothe contract work performed each year.5．In business charges depreciation in accounts, the accounting concept to be considered is the materiality concept.A．正确B．错误正确答案：B解析：In business charges depreciation in accounts, the accounting concept to be considered is the going concern concept.6．Cumulative preference shares have the right to accumulate dividends in a given year if they are in arrears.A．正确B．错误正确答案：AQuestion 27．If retained earnings were understated and liabilities were overstated, which of the following errors could have been the cause?A．Making the adjustment entry for depreciation expenses twice.B．Failure to record interest accrued on a note payable.C．Failure to make the adjusting entry to record revenue which had been earned but not yet billed to clients.D．Failure to record the earned portion of fees received in advance.正确答案：D8．The selected data pertain to a company at 31 December 2003 as the following:Quick Assets ＄208,000Quick ratio 2.6 to 1Current ratio 3.5 to 1Net sales for 2003 ＄1,800,000Cost of good sold for 2003 ＄990,000Average total assets for 2003 ＄1,200,000The company’s inventory balance at 31 December 2003 is ______.A．＄72,000.B．＄186,990.C．＄231,111.D．＄68,000.正确答案：A9．An accrued expense can best be described as an amount ______.A．paid and currently matched with earnings.B．paid and not currently matched with earnings.C．not paid but currently matched with earnings.D．None of the above.正确答案：C10．Mr. Wong paid ＄3,000 in advance for insurance on 1 December 2001 and debited it to Insurance Expense. No entries were made subsequently in 2001 or in 200The accounting period ends on December 3As a result of this error ______.A．2001 income was understated ＄2,000.B．2002 income was understated ＄2,000.C．2001 income was understated ＄3,000.D．2002 income was understated ＄3,000.正确答案：A11．Mr. Ting’s net cash inflow from operating activities for the year ending 30 June is＄123,000. The following adjustments were included in the supplementary schedule reconciling cash flow from operating activities with net income:Depreciation ＄38,000Increase in net accounts receivable 31,000Decrease inventory 27,000Increase in accounts payable 48,000Increase in interest payable 12,000Net income is ______.A．＄29,000.B．＄41,000.C．＄79,000.D．＄217,000.正确答案：A12．Which of the following is not a characteristic of the accounting for non-trading organizations?A．They normally provide Receipts and Payments Accounts.B．They have Accumulated Fund, which is more or less the same as capital.C．It is more common to keep all records on a single entry basis.D．They must keep books on a double-entry system.正确答案：D13．Mr. Wong is a small company. And it failed to record every transaction. Now you are provided with the following information: capital at 1 January 2003 is ＄30,000, capital at 31 December 2003 is ＄31,000. During 2003, drawings are ＄2,000. Then the net profit for the year 2003 is ______.A．＄3,000.B．＄-1,000.C．＄1,000.D．＄-3,000.正确答案：A14．At the beginning of a given period, Mr. Ting’s inventory was all finished goods. The volume is 600. At file end of this period, 2,000 are completed units and 600 are partly completed. The partly completed units were deemed to be 50% complete. The manufacturing cost is ＄30,000. Then cost per unit is ______.A．＄17.64B．＄13.04C．＄10.34D．＄15正确答案：A15．Basic accounting assumptions include the following except ______.A．going concern.B．monetary unit.C．consistency.D．business entity.正确答案：C16．At 1 January 2003, the balance of Billy Company’s Provision for Bad Debts is ＄5,000. At 31 December 2003, the balance of trade debtors is ＄45,000. Billy Company’s provision for bad debts equals to 10% of trade debtors. During the year 2003, the bad debt written off is＄2,000. Then Bad Debt expenses of Billy Company this year must be ______.A．＄2,500.B．＄1,500.C．＄-1,500.D．＄-2,500.正确答案：BQuestion 317．As at 31 December Year 8, Sam Ltd’s cash book showed a debit balance of ＄1,055, although he had an overdraft of ＄3,511. The discrepancy is due to the following:—Bank interest of ＄10 had been included in the bank statement, but was not recorded in the cash book.—A cheque for ＄2,300 was banked on 28 December and correctly entered in the cash book. Unfortunately the customer had forgotten to sign the cheque and it was subsequently dishonored and returned by the bank on 31 December. The book-keeper recorded the return in the cash book on 3 January Year 9.—The bank had incorrectly deducted ＄907 from Sam’s account for a cheque drawn by May.—A refund of ＄85 received from a supplier and banked on 2 October had been recorded in the cash book as a receipt of ＄58.—A cheque for ＄450 issued on 29 December as a refund to a customer had been recorded as a receipt in the cash book. It has not been presented for payment by 31 December.—The book-keeper had intended to desposit ＄2,750 in the bank on 31 December and therefore recorded it as a receipt in the cash book on that date. Due to a delay, the amount was not banked until 3 January Year 9.—An amount of ＄350 paid directly into the bank by a customer had not been recorded in the cash book.—The cash book receipts had been undercast by ＄800.Required:(a)Calculate the corrected cash book balance on 31 December Year 8.(b)Prepare a bank reconciliation statement for Sam showing the bank overdraft which appeared on his bank statement on that date.正确答案：(a)Corrected Cash Book Balance:＄＄Original balance 1,055Add: Refund wrongly entered 27Direct banking 350Undercasting 800 1,1772,232Less: Bank interest 10Dishonored cheque 2,300Entered on wrong side 950Not deposited 2,750 6,0103,778 O/D(b)Bank Reconciliation Statement as at 31 December Year 8:＄＄Balance per bank statement 3,511 O/DLess: Unpresented chequesNovember 190December 450 6402,871 O/DAdd: Error by bank 9073,778 O/DQuestion 418．1. Ming’s Company produces CD appliances. The following is the cost information for the year ended 31 December 2003.1. Material put into production was valued at ＄360,000 and ＄80,000 of which was used as supplies.2. The payroll records showed that total labor cost was ＄350,000, ＄68,000 of which was the costs of foremen and storekeeping men.3. Factory power and utilities were at a total cost of ＄90,000.4. Selling and administration expenses totaled ＄100,000.5. There was no opening and closing work-in-progress. The production records indicated that 20,000 units were completed in the year.Required:Calculate the following:(a)Prime cost(b)Conversion cost(c)Cost of goods manufactured(d)Unit production cost正确答案：(a)Prime cost =＄(360,000-80,000)+＄(350,000-68,000) =＄562,000(b)Conversion cost =＄(350,000-68,000)+＄80,000+＄68,000+＄90,000=＄520,000(c)Cost of goods manufactured =＄(360,000-80,000)+＄520,000 =＄800,000(d)Unit production cost = Cost of goods manufactured / completed units= ＄800,000 / 20,000 = ＄40 per unitQuestion 519．Mr. Wong is a small manufacturer of bicycles in Hong Kong. His business incurred the following costs for the year ended 31 December 2003.＄Materials (100% variable) 300,000Labor (25% variable) 200,000Selling & distribution cost (20% variable) 50,000Other costs (fixed) 170,000 720,000Normally, the business sells3,000 units at ＄300 each:Required:(a)Calculate the breakeven point in units and dollar sales.(b)Calculate the contribution to sales ratio.(c)Calculate the margin of safety in percentage.正确答案：(a) Total variable costs:＄Materials 300,000Labor (＄200,000×25%) 50,000Selling & distribution cost (＄50,000×20% ) 10,000360,000Variable cost per unit =＄360,000 / 3,000 =＄120Contribution per unit =Selling price - Variable cost =＄300 -＄120 =＄180Breakeven point (in units) = Fixed cost / Contribution per unit= (＄200,000×75% +＄50,000×80% +＄170,000)/＄180= ＄360,000/＄180= 2,000 unitsBreakeven point (dollars sales) = Breakeven units ×Selling price per unit= 2,000×＄300= ＄600,000(b) the contribution to sales ratio = ＄180 / ＄300×100% = 60%(c) the margin of safety = (Current sales - breakeven sales) / Current sales×100%= (3,000×＄300-＄600,000)/＄900,000×100%= 33.3%Question 620．If a company had 120,000, 4% preference shares of ＄1 each and 250,000 ordinary shares of ＄1 each, then the dividends would be payable as follows:Year 1 Year 2 Year 3 Year 4 Year 5＄＄＄＄＄Total Profits appropriated for dividends 7,000 3,000 20,000 4,000 5,000Required:(a)If the preference shares are cumulative, non-participating, calculate the preference dividends and ordinary dividends in each year.(b)If the preference shares are cumulative, participating, calculate the preference dividends and ordinary dividends in each year.正确答案：(a)If the preference shares are cumulative, non-participatingYear 1 Year 2 Year 3 Year 4 Year 5＄＄＄＄＄Preference Dividends (4%) 4,800 3,000 6,600 4,000 5,000Ordinary Dividends 2,200 —13,400 ——(b)If the preference shares is cumulative, participatingYear 1 Year 2 Year 3 Year 4 Year 5＄＄＄＄＄Preference Dividends (4%) 4,800 3,000 1,800 4,000 200(4%) (2.5%) (in arrears) (3.33%) (in arrears)4,800 4,800(4%) (4%)1,103 —(0.92%) 5,0005,903Ordinary Dividends 2,200 —10,000 ——(0.88%) (4%)2,297(0.92%)12,297SECTION TWO Answer any two questions in this section.Question 721．After the first year of trading, Mr. Wong provided you the following list of ledger balances as at 31 December 2003:＄Stock, 1 January 2003 3,300Stock, 31 December 2003 25,200Sales 160,000Purchases 100,000Premises 142,600Fixtures & Fittings 45,200Motor Vehicles 42,500Returns Inwards 1,500Returns Outwards 2,600Carriage Inwards 1,000Carriage Outwards 250Debtors 30,500Creditors 41,500Wages 17,495Rent and Rates 3,900Lighting & Heating 18,455Insurance 10,600Motor Vehicle Expenses 2,400Cash at Bank 4,700Bank Loan 29,000LoanInterest 2,300Drawing 6,400You are further given the following information:1.Wages owing are ＄550.2.Prepaid rent is ＄600.3.Depreciation of Fixtures & Fittings is 10% per annum on cost.4.Depreciation of Premises is based on a 10-year lease.5.Depreciation of Motor Vehicles is 50% life using the reducing balance method.6.Stock taken for Mr. Wong’s own use is ＄1,100. Such a transaction has not yet been recorded.7.It is estimated that one-third of the driving time is for private purposes.8.5% of the outstanding accounts at the year end is thought to be uncollectible.9.There was no error made in the recording of business transactions for the year.Required:(a)Prepare a Trading and Profit and Loss Account for the year ended 31 December 2003.(b)Prepare a Balance Sheet as at 31 December 2003.(c)Explain the meaning and the significance of Working Capital.正确答案：(a) Mr. Wong’s BusinessTrading and Profit and Loss Account for the year ended 31 December 2003＄＄＄Sales 160,000Less: Returns inwards 1,500Net sales 158,500Less: Cost of goods soldOpening stock 3,300Purchases 100,000Carriage inwards 1,000101,000Less: Returns outwards 2,60098,400Less: Stock drawing 1,100 97,300100,600Less: Closing stock 25,200 75,400Gross Profit 83,100Less: ExpensesWages (17,495 + 550) 18,045Rent and Rates (3,900-600) 3,300Lighting & Heating 18,455Insurance 10,600Motor Vehicle Expenses (2,400×2/3) 1,600Loan Interest 2,300Carriage Outwards 250Bad debts 1,525Depreciation:—Premises (142,600×1/10) 14,260—Fixtures & Fittings (45,200×10%) 4,520—Motor Vehicle (42,500×50%) 21,250 96,105(13,005)(b) Mr. Wong’s BusinessBalance Sheet as at 31 December 2003＄＄＄Cost Dep NBVFixed AssetsPremises 142,600 14,260 128,340Fixtures & Fittings 45,200 4,520 40,680Motor vehicles 42,500 21,250 21,250230,300 40,030 190,270Current AssetsStock 25,200Debtors 30,500Less: Provision for bad debts 1,525 28,975Prepaid rent 600Cash at bank 4,70059,475Less: Current LiabilitiesCreditors 41,500Accrued wages 550 42,050Net Current Assets 17,425Total Net Assets 207,695Represented ByCapital (Workings 1) 200,000Less: Net Loss 13,005186,995Less: Drawings (6,400+1,100+1/3×2,400) 8,300178,695Bank loan 29,000207,695Workings 1: The initial capital contributed by Mr. Wong is determined by drawing up the following trial balance:Dr Cr＄＄Stock 3,300Sales 160,000Purchases 100,000Premises 142,600Fixtures & Fittings 45,200Motor Vehicles 42,500Returns Inwards 1,500Returns Outwards 2,600Carriage Inwards 1,000Carriage Outwards 250Debtors 30,500Creditors 41,500Wages 17,495Rent and Rates 3,900Lighting & Heating 18,455Insurance 10,600Motor Vehicle Expenses 2,400Cash at Bank 4,700Bank Loan 29,000Loan Interest 2,300Drawings 6,400Capital (Balance Figure) _____ 200,000433,100 433,100(c) Working capital is defined as the excess of current assets over current liabilities. It is one of the important financial indicators of the liquidity position of a business entity. A positive working capital position means that a business is able to manage its affairs to such a state that current assets are sufficiently ready to meet the requirement of settling the debts which are to be due within one year. In other words, a business is to be solvent in the short term if there is a positive working capital. This indicates that the liquidity position of a business is financially sound.However, a positive working capital does not necessarily indicate that the business is solvent in the long term or in a forced liquidation.Question 822．The following are the summarized financial statements of Mr. Wong’s business for the years ended 31 December 2002 and 2003 respectively.Balance Sheets as at 31 December2002 2003＄＄Fixed Assets (net book value) 22,500 18,000Current Assets:Stock 10,500 27,000Debtors 18,000 54,000Bank 1,500 —Current liabilities:Creditors (9,000) (22,500)Bank overdraft —(15,000) 43,500 61,500Capital at 1 January 18,000 43,500Net Profit for the year 45,000 52,500Drawings (19,500) (34,500) 43,500 61,500Profit and Loss AccountSales 180,000 300,000Cost of sales 120,000 225,000Gross profit 60,000 75,000Operating expenses 15,000 22,500Net profit 45,000 52,500Additional information is given as follows:1. All sales were on credit basis.2. There were no purchase or disposals of fixed assets during the year.3. The stock value and debtor balance as at 31 December 2001 were ＄15,000 and ＄30,000 respectively.Required:(a)Calculate the following financial ratios for years both 2002 and 2003:(i)Gross profit margin(ii)Net profit margin(iii)Return on capital employed(iv)Current ratio(v)Acid test ratio(vi)Stock turnover period (days)(vii)Debtors collection period (days)(viii)Gearing ratio(b)Why is the gearing ratio important to a banker in making a lending decision?(c)Based on the financial ratios in (a), comment on the profitability, liquidity and management efficiency of Mr. Wong’s business.正确答案：(a) (i) Gross profit margin = Gross profit / Sales×100%year 2002: = 60,000/180,000×100% = 33.3%year 2003: = 75,000/300,000×100% = 25%(ii) Net profit margin = Net profit/Sales×100%year 2002: = 45,000/180,000×100% = 25%year 2003: = 52,500/300,000×100% = 17.5%(iii) Return on capital employed = Net profit / Capital employed×100%year 2002: = 45,000/43,500×100% = 103.4%year 2003: = 52,500/61,500×100% = 85.4%(iv) Current ratio = Current assets / Current liabilitiesyear 2002: = 30,000/9,000 = 3.33 to 1year 2003: = 81,000/37,500 = 2.16 to 1(v) Acid test ratio = (Current assets- Stocks) / Current liabilitiesyear 2002: = 19,500/9,000 = 2.17 to 1year 2003: = 54,000/37,500 = 1.44 to 1(vi) Stock turnover period (days) = 365×Average Stock / Cost of salesyear 2002: = 365×0.5×(15,000+10,500)/120,000 = 39 daysyear 2003: = 365×0.5×(10,500+27,000)/225,000 = 30 days(vii) Debtors collection period (days) = 365×Average debtors/Salesyear 2002: = 365×0.5×(30,000+18,000)/180,000 = 49 daysyear 2003: = 365×0.5×(18,000+54,000)/300,000 = 44 days(viii) Gearing ratio = Long-term loan/(Long-term loan + Shareholders’ fund)×100%year 2002: = 0year 2003: = 0(b) Gearing ratio is an expression of the way companies are financed and the proportion of capital provided by risk taking shareholders and by lenders to the company.This ratio assists the bankers in their loan lending decisions. Basically, gearing ratio is an indication of the risk to be undertaken by the ordinary shareholders because of the interest obligation of the long-term financial position, particularly thecash flows. A company’s borrowing power will be correspondingly lower when there is an increase in the geared ratio.(c) The following points should be noted:Profitability —Decrease in gross profit margin, net profit margin and return on capital employed.—Although turnover is improved, profit margins am decreased. This may be due to inefficient control on operating expenses and/or less effective marketing strategy.Liquidity—Both current ratio and acid test ratio indicate that the liquidity position is worsening.—It may be due to piling up of inventory and substantial outstanding debtors amounts.Management Efficiency—The credit control policy has been tightened up as the debtors’ collection period has been reduced by 5 days.—The stock control has also been improved as the stock turnover becomes faster.Question 923．The following ledger balances are extracted from the books of White Trading Company as at 31 December 2003:＄Bad debts 750Bank overdraft 1,650Capital 100,000Carriage inwards 3,500Carriage outwards 1,400Creditors 18,500Debenture interest 900Debtors 12,500Discounts allowed 1,300Discounts received 1,500Drawings 24,900Equipment (at cost) 150,000Insurance 1,000Lighting 5,000Motor Van 40,000Provision for bad debts 1,100Provision for depreciation—Equipment 90,000—Motor Van 18,000Purchases 1,000,000Rent & rates 110,000Salaries and wages 210,000Sales 1,400,000Stock 1 January 2003 90,000Returns inwards 13,000Returns outwards 13,5009% 1998-2008 10-year Debenture 20,000Additional information relevant to the year ended 31 December 2003 is as follows:1. Closing stock at 31 December 2003 ＄115,0002. Accrued wages ＄20,0003. Prepaid insurance ＄2004. Outstanding telephone bill ＄2005. Outstanding rent ＄10,0006. Removal expenses of ＄950 are still outstanding because of dispute and they have not yet been entered into the accounting records.7. The depreciation policy is:(a)Equipment reducing balance method at 5% p.a(b)Motor Van: 25% p.a on cost8. It is a policy to make a provision for bad debts at 4% of outstanding debtors on the balance sheet date.Required:Prepare the Trading and Profit and Loss Account for the year ended 31 December 2003.正确答案：White Trading CompanyTrading and Profit and Loss Account for the year ended 31 December 2003＄＄＄Sales 1,400,000Less: Returns inwards 13,000 1,387,000Less: Cost of goods soldOpening stock 90,000Purchases 1,000,000Add: Carriage inwards 3,500Less: Returns outwards (13,500) 990,0001,080,000Less: Closing stock 115,000 965,000Gross Profit 422,000Other revenues:Discounts received 1,500Bad debts recovery 950424,450Less: ExpensesSalaries and wages 230,000(210,000 + 20,000)Rent & rates 120,000(110,000 + 10,000)Lighting 5,000Insurance (1,000 - 200) 800Removal expenses 950Bank services charges 160Telephone 200Discount allowed 1,300Carriage outwards 1,400Bad debts (750 + 25,000 ×650- 1,100)Debenture interest 2,700(900 + 20,000 ×9%)Depreciation-equipment 3,000 366,160(150,000 - 90,000)×5%Net Profit 58,290。
金融专业英语证书考试FECT单选练习100题-2
1. Usually the low in terest rate curre ncy trades at a ____ to the high in terest rate curre ncy in the forward market.A. premiumB. parC. disco untD. bar2. Which of the followi ng stateme nts about sta ndby letters of credit is true ___ .A. They can serve as a guara ntee to a buyer aga inst a seller default ingB. They are contrary to the general rule that letters of credit may only be used for the actual moveme nt of goodsC. They are un like a ten der (or other) bond in their legal sta nding and method of operati onD. They are unlike a tender bond with its fixed expiry date3. The most liquid of all assets is _____ .A. the stock of commercial banksB. M 1C. i ntellige neeD. the debt of major corporati ons4. Beta and sta ndard deviati on differ as risk measures in that beta measures ____ .A. only unsystematic risk, while standard deviation measures total riskB. only systematic risk, while standard deviation measures total riskC. both systematic and un systematic risk, while sta ndard deviati on measures on ly un systematic riskD. both systematic and un systematic risk, while sta ndard deviatio n measures only systematic risk5. What information would you find in a statement of cash flows that you would not be able to get from the other two primary finan cial stateme nts ____ .A. Cash provided by or used in financing activitiesB. Cash bala nee at the end of the periodC. Total liabilities due to creditors at the end of the periodD. Net in come6. An an alyst estimates that a stock has the follow ing probabilities of retur n depe nding on the state of the economy:The expected return of the stock is _____ .A. 7.8% C. %D. %B. %7. Accordi ng to the rules of debit and credit for bala nee sheet acco unts ____ .A. i ncreases in asset, liability, and own er's equity acco unts are recorded by debitsB. decreases in asset and liability accounts are recorded by creditsC. in creases in asset and own er's equity acco unts are recorded by debitsD. decreases in liability and owner's equity accounts are recorded by debits 2658. In dividuals will accept the medium of excha nge in retur n for goods and services only if they are con fide nt that ____ .A. the inflation rate is zeroB. it possesses intrin sic valueC. they can pass it on to othersD. they can excha nge it for gold9. Whe n a coun try's curre ncy appreciates, the coun try's goods abroad become _______ a nd foreig n goods in that country become _____ .A. cheaper... more expe nsiveB. more expe nsive... cheaperC. cheaper...cheaperD. more expe nsive... more expe nsive10. A US compa ny is biddi ng for a con tract in Chi na. Its Chin ese customer asks for a performa nee bond. What is the most likely course of acti on ____ .A. It asks its bank to issue a tender bond which can be converted into a performance bondB. It gives up its bidC. It consults its bank about issuing a standby letter of creditD. It asks its bank to issue a performance bond11. ABCCo. Ltd. has a $3 500 accou nt receivable from XYZStore. On March 20, XYZmakes a partial payme nt of $2 100 to ABC. The journal entry made on Mdrch 20 by ABC to record this tran sacti on in cludes _______ .A. a debit to the cash received acco unt of $2 100B. a credit to the Acco unts Receivable acco unt of $2 100C. a debit to the Cash accou nt of $1 400D. a debit to the Accou nts Receivable accou nt of $1 40012. I nterve ntio n in the foreig n excha nge market means the gover nment _ .A. restricts in dividuals from buying and selli ng foreig n excha ngeB. restricts the importation of certain goodsC. or cen tral bank buys or sells foreig n excha ngeD. devalues the curre ncy in the foreig n-excha nge market13. Which of the followi ng is not a form of coun tertrade ____ .A. Coun terpurchaseB. Buy-backC. OffsetD. Bala nee trade14. A credit to a reve nue acco unt _____ .A. decreases reve nuesB. in creases equityC. decreases equityD. in creases assets15. If the gover nment guara nteed that anyone wishi ng a job would be provided one, the likely result would be _____ .A. massive layoffsB. an in crease in the money supplyC. an in crease in in flatio nary expectati onsD. the developme nt of a barter system16. Given $100 000 to invest, what is the expected risk premium in dollars of investing in equitiesA. $20000B. $18000C. $15000D. $1300017. Econo mists assume that most people take risks ____A. because doing so is excit ingB. on ly whe n they have no riskless alter nativeC. very in freque ntlyD. if they are compensated for taking the risks18. The Phillips Curve shows the relationship between ____ .A. aggregate demand and aggregate supplyB. interest rates and inflationC. recessions and boomsD. inflation and the unemployment rate19. In a fixed exchange rate system, speculative selling of a currency is based on anticipation of .A. appreciationB. devaluationC. a foreign trade surplusD. interest rate increase20. A collecting bank is employed by ____ .A. the principalB. the remitting bankC. the drawerD. the drawee, who is its customer21. The following statements describing net income are all correct except that ____ .A. net income is computed in the income statement, appears in the statement of owner's equity, and increases owner's equity in the balance sheetB. net income is equal to revenues minus expensesC. net income is computed in the income statement, appears in the statement of owner's equity, and increases the amount of cash shown in the balance sheetD. net income can be determined using the account balances appearing in an adjusted trial balance22. A strong dollar encourages _____ .A. travel to the United States by foreignersB. purchase of American goods by foreignersC. Americans to travel abroadD. Americans to save dollars23. In what circumstances would the beneficiary of a confirmed documentary credit not receive payment ____________ .A. Failure of the applicantB. Failure of the issuing bankC. Failure to fulfil the credit termsD. Failure to fulfil the commercial contract24. The balance in the owner's capital account of ABC Co. Ltd. at the beginning of the year was $65 000. During the year, the company earned revenue of $430 000 and incurred expenses of $360 000, the owner withdrew $50 000 in assets, and the balance of the Cash account increasedby $10 000. At year-end, the company's net income and the year-end balance in the owner's capital account were, respectively .A. $20 000 and $95 000B. $70 000 and $95 000C. $70 000 and $85 000D. $60 000 and $75 00025. Assume the inflation rate is expected to be 5 percent and the unemployment rate is 8 percent. If workers wish to get a 2 percent real wage increase, they should bargain for a money wage increase of __________ .A. 3 percentB. 5 percentC. 7 percentD. 13 percent26. Which statement about portfolio diversification is correct .A. Proper diversification can reduce or eliminate systematic riskB. As more securities are added to a portfolio, total risk typically would be expected to fall at a decreasing rateC. The risk-reducing benefits of diversification do not occur meaningfully until at least 30 individual securities are included in the portfolioD. Diversification reduces the portfolio's expected return because it reduces a portfolio's total risk27. Your customer is the applicant for a documentary credit. Which of the following points would appear to be illogical if they appeared on the application form __________ .A. Invoice price shown as FOB, bills of lading to be marked freight paidB. Last date for shipment one week before expiry dateC. Invoice price shown as C&F, but no insurance document requestedD. No mention of the latest date of shipment28. Portfolio theory as described by Markowitz is most concerned with ___ .A. the effect of diversification on portfolio riskB. B. the elimination of systematic riskC. active portfolio management to enhance returnD. the identification of unsystematic risk29. Commercial bank deposits with the central bank are part of the bank'sA. net worthB. demand depositsC. loan portfolioD. reserves30. Foreign trade can be conducted on the following terms except for ____ .A. open accountB. documentary collectionC. documentary creditsD. public bonds31。
金融英语证书考试试题
金融英语证书考试（FECT）Exercises-1（1）1.Which of the following is not a function of money？______。
?A.To act as a medium of exchangeB.To act as a unit of accountC.To act as a store of valueD.To provide a double coincidence of wantsE.To act as a means of payment2.The price in the foreign exchange market is called ______。
A.the trade surplusB.the exchange rateC.the money priceD.the currency rate3.Market risk refers to the risk of______。
A.financial prices fluctuationsB.defaultC.fraudD.deferred payments4.Which of the following is not among the generally accepted accounting principles？______。
A.Cash basisB.PrudenceC.ConsistencyD.Going concernE.Money measurement。
5.What is a documentary letter of credit？______。
A.A conditional bank undertaking to pay an exporter on production of stipulated documentationB.A method of lending against documentary securityC.An international trade settlement system biased in favour of importersD.All of the above6.Holding a group of assets reduces risk as long as the assets ______。
2020年金融英语考试复习备考及模拟习题1(英语学习).doc
2011年金融英语考试复习备考及模拟习题1（英语学习）1．The financial statements that are dated for a time period （rather than a specific time）are the ______．A．balance sheet and income statementB．income statement and statement of cash flowsC．balance sheet and statement of owners‘equityD．all of the above2．Which of the following is an example of off－balance－sheet financing？______．A．Operating leaseB．Debenture bondsC．Current portion of long－term debtD．Convertible bonds3．Borrowers can gain access to the surplus funds of savers ______．A．by issuing securities to saversB．through financial intermediariesC．by purchasing securities such as stocks and bondsD．all of the aboveE．both A and B4．Which of the following assets are most liquid？______．A．High grade corporate bondsB．Time“ depositsC．Stocks in General Electric CompanyD．Passbook savings deposits5．Secondary markets for securities ______．A．deal only in bondsB．are markets primarily for the initial sale of new issuesC．are markets for trading in outstanding debts and equity claimsD．are also called ”investment banks“6．The concept of ______ is based on the common－sense notion that a dollar paid to you in the future is less valuable to you than a dollar today．A．future valueB．present valueC．deflationD．interest7．Which of the following would not result in a credit entry in the China’s balance of payments？______．A．The sale of a piece of furniture to a business firm in JapanB．Interest and dividends paid on foreign investment in ChinaC．Interests on a Chinese bank deposit in the United KingdomD．An increase in foreign investment in China8．Futures contracts can be ______．A．used as protection against large price swingsB．countered by an offsetting purchase or saleC．participated by hedgers or speculatorsD．all of the above9．Suppose that you own a business and are considering expanding yourproductive capital through an increase in investment spending．You will invest only if ______．A．you are able to obtain the necessary funds at a low nominal interest rateB．the investment does not affect your cost of productionC．the present value of future income exceeds the cost of the investment plus interest on any money that you must borrowD．you observe that your competitors are expanding their productive capital10．If Y and V are constant，and M doubles，the quantity equation implies that the price level ______．A．more than doublesB．less than doublesC．doublesD．might do any of the aboveE．more information is needed11．Posting is the process of transferring information from the ______．A．journal to the trial balanceB．ledger to the financial statementsC．ledger to the trial balanceD．journal to the ledger12．A long call option is ______．A．the right to buy the underlying instrumentB．the right to sell the underlying instrumentC．the obligation to buy the underlying instrumentD．the obligation to sell the underlying instrument13．Which of the following $1 000 face－value securities has the highest yield to maturity？______．A．A 5% coupon bond selling for $1000B．A 15% coupon bond selling for $1000C．A 10% coupon bond selling for $1000D．A 15% coupon bond selling for $90014．When the price of a bond is ______ the equilibrium price，there is an excess demand of bonds and the price will ______．A．above．．．riseB．above．．．fallC．below．．．fallD．below．．．rise15．Which of the following accounts is not closed？______．A．Supplies ExpenseB．Prepaid InsuranceC．Interest RevenueD．Dividends16．Which of the following instruments is traded in a capital market？______．A．Bankers acceptanceB．S．Treasury BillC．EurodollarD．Commercial paperE．None of the above17．Which of the following is generally true of all bonds？______．A．The longer a bond maturity，the lower is the rate of return that occurs as a result of the increase in an interest rateB．Even though a bond has a substantial initial interest rate，its return can turn out to be negative if interest rates riseC．Prices and returns for long－term bonds are more volatile than those for shorter－term bondsD．All of the aboveE．Only A and B18．According to the market segmentation theory of the term structure，______．A．investors‘strong preference for short－term relative to long－term bonds explains why yield curves typically slope downwardB．bonds of one maturity are not substitutes for bonds of other maturities；therefore，interest rates on bonds of different maturities do not move together over timeC．the interest rate for bonds of one maturity is determined by supply and demand for bonds of that maturityD．all of the aboveE．only B and C19．Successful financial intermediaries have higher earnings on their investments because they are better equipped than individuals to screen out good from bad risks，thereby reducing losses due to ______．A．moral hazardB．adverse selectionC．bad luckD．financial panics20．A long－term debt instrument is best defined as one with maturity ______．A．of more than one yearB．of more than five yearsC．of more than ten yearsD．of thirty years or more。
2022年金融英语证书考试FECT模拟试题及答案-1
金融英语 FECT 试题模拟试题1. Multiple-choice questions: from the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points)1. Only what happens if the supply is less than demand? （）A. actual price is lower than the equilibrium priceB. actual price is higher than the equilibrium priceC. equilibrium price equivalent to the actual priceD. eliminate the scarcity of goodsA. No difference curveB. consumption may LineC. Line and its outputD. enterprise budget line3. Opportunity cost: （）A. Is always measurable in money terms.B. Is an indicator of productivity performance.C. Relates peculiarly to business affairs alone.（）B. The adroitness of advertisers.C. Limited spending power.D. Technological advance.5. For a closed two-good economy, the output of the two goods should be at the point where: （）A. The highest indifference curve touches the production possibility curve.B. The lowest indifference curve touches the production possibility curve.C. The indifference curve crosses the production possibility curve.D. The marginal cost curve touches the production possibility curve.6. The "J-curve" shows that following depreciation: （）A. The quantity of exports falls, making the current account balance worse.B. Here is an initial drop in imports but this is later reversed.C. The cost of imports rises immediately from the price effect, worsening the current account balance, but later quantities of imports and exports respond and the current account balance improves.D. There is an improvement in the balance of payments so long as the Marshall-Lerner conditions are met.7. Which of the following statements about standby letters of credit is true? :（）A. They can serve as a guarantee to a buyer against a seller defaultingB. They are contrary to the general rule that letters of credit may only be used for the actual movement of goods金融英语 FECT 试题C. They are unlike a tender (or other) bond in their legal standing and method of operationD. They are unlike a tender bond with its fixed expiry date8. What information would you find in a statement of cash flows that you would not be able to get from the other two primary financial statements? （）A. Cash provided by or used in financing activitiesB. Cash balance at the end of the periodC. Total liabilities due to creditors at the end of the period9. Which of these best describes the U.S. Federal Reserve? （）A. Responsible for monetary policy/money supplyB. Prints money.C. Keeps the country out of debt.D. Helps people in need.10. What is the basic purpose of profits in our market economy? （）A. Pay for wages and salaries of workers.B. Lead businesses to produce what consumers want.D. All of the above.Part 1)金融英语 FECT 试题all of the following EXCEPT: （）B. Profits increase as firms enter the industry.C. Profits are low and firms flee the industry.D. Prices could increase or decrease depending on the level of profits.Part 2)In a recessionary environment, an automaker such as Ford would be expected to: （）A. Produce higher end vehicles.B. Maintain the same product mix as 5 years ago.C. Gain market share if it produces high end vehicles.D. Produce lower end vehicles.Part 3)Assume domestic automakers are growing at a rate of –2%. Ford expects to increase its market share by 0.5%. What is Ford’s growth rate? （）A. 1.5%.B. -3.0%.C. -1.5%.D. 3.0%.Part 4)Suppose instead that Ford’s growth of firm sales is expected to be –3% and the growth of industry sales is 1%. What is Ford’s expected change i n market share? （）A. 3%.Part 5)Which of the following scenarios would be most likely to have a positive impact on Ford’s market share? （）A. New carmakers enter the market.B. An increase in its marketing budget.C. War with an oil producing country.D. The overall number of cars sold increases.Explanations of terms：(10 points)1. Official interest rate2. Fiat money3. GDP4. Mean5. Primary marketsQuestion3: What are the basic objectives of economic policies?Question4: What is the Money Market Mutual Funds?Question5: Why Should I Lease Equipment Instead of Buy？Quetion6：Tell us The Practice of China’s Monetary Policy since Economic Reform and Opening up briefly?金融英语 FECT 试题参考答案1. B A D C A， C A C A BPart 1)Your answer: B was correct!Part 2)Your answer: D was correct!During economic downturns, producers of low-cost products increase their market share at the expense of high-cost producers. This also is true within firms that produce various priced products.Part 3)Your answer: B was incorrect. The correct answer was C!(1 + growth of firm sales) = (1 + growth of industry sales) x (1 + fractional change of market share)= 0.98 x 1.005= 0.9849Growth of firm sales = –1.51%Part 4)Your answer: B was incorrect. The correct answer was C!–Part 5)Your answer: The correct answer was B!An increase in its marketing budget.Explanations of terms：(10 points)1. Official interest rate ：Official interest rate is the rate set by the central bank or monetary authorities. The interest rate is one of levers used by governments to regulate economy.金融英语 FECT 试题and by governments to finance budget deficits.Question3：Answer:Since the Great Depression of the 1930s, governments have actively pursued the goal of economic stability at full employment. Known as internal balance, this objective has two dimensions; (D a fully employed economy, and ©no inflation—or, more realistically, a reasonable amount of inflation. Nations traditionally have considered internal balance to be of primary importance and have formulated economic policies to attain this goal.Question 4Answer:The money markets are wholesale markets where most securities trade in large denominations. This characteristic effectively blocks most individuals from investing directly in these securities. However, the markets usually find a way to correct for such deficiencies, especially when potential customers are available. Money market mutual funds represent one sucha of inception in the early 1970s because they provide a means for small investors to take advantage of the returns offered on money market securities. These securities would be out of reach to most small investors because of their large minimum denominations.Question5：Answer:(2) Leasing is practical. By leasing, you transfer the uncertainties and risks of equipment ownership to the lessor, which allows you to concentrate on using that equipment as a productive part of your business.(3) Leasing is cost effective. Equipment is costly and some of the costs are unexpected. When you lease, your risk of getting caught with obsolete equipment is lower because you can upgrade or add equipment to best meet your needs.金融英语 FECT 试题(4) Leasing has tax advantages. Rather than dealing with depreciation schedules and Alternative Minimum Tax (AMT) problems, you, the lessee, simply make the lease payment and deduct it as a business expense.(5) Leasing helps conserve your operating capital. Leasing keeps your lines of credit open. You don’t tie up your cash in equity. Also, you avoid costly down payments. With other advantages such as offbalance sheet financing, leasing helps you better manage your balance sheet.Question6：Answer:China’s monetary policy, in general sense, is the same as the concept of monetary policy in western economics, including such factors as operating instruments, operating targets, intermediate targets and final targets. The impact of monetary policy on China’s macro-economy is produced through the transmission of those factors one by one.(1) The final targets of Chi na’s monetary policy(2) The operating and intermediate targets of China’s monetary policy(3) The monetary policy instruments金融英语 FECT 试题instruments that conform to the socialist market economy has been lawfully set up. With the establishment of socialist market economy the gradual shift from direct to indirect monetary policy instruments has greatly improved transmission mechanism of monetary policy and effectiveness of macroeconomic management in China. But in a transition period the potency of monetary policy is still subject to various factors as follows：●Government’s intervention. In economic activities, intervention by governments at each level is still strong. It is not rarely seen that local governments often force banks to make loans for the sake of development of local economy, which interferes the independence of the central bank’s monetary policy and blurs monetary policy targets, so monetary policy instruments are partly ineffective.●Less developed markets. In the transition period market mechanism is not perfect while the planned mechanism has lost much of its share. So the vacuum in management of national economy appears. As a result distribution of resources is in disorder and the contradiction in economic structure is obvious. The central government has to increase investment in order to better economic structure, so it’s hard to contract investment size, wipe out investment expansion of fixed assets and control the money supply. So implementation of monetary policy of the central bank is interfered with.●Imperfect self-constraint mechanism of financial institutions. As China’s financial institutions are still under reform, their behavior is not standardized because of imperfect self-constraint mechanism. So the impact of the central bank’s monetary policy on reserves of financial institutions is not sure and the operating targets cannot respond sensitively.●Lack of self-constraint mechanism of enterprises. In order to maintain certain increasing rate of funds they banks and the central bank and is harmful to the central bank’s control on the money supply.。
金融英语证书考试修订稿
金融英语证书考试内部编号：（YUUT-TBBY-MMUT-URRUY-UOOY-DBUYI-0128）金融英语证书考试（FECT）Exercises-1（1）of the following is not a function of money ______。
act as a medium of exchangeact as a unit of accountact as a store of valueprovide a double coincidence of wantsact as a means of paymentprice in the foreign exchange market is called ______。
trade surplusexchange ratemoney pricecurrency raterisk refers to the risk of______。
prices fluctuationspaymentsof the following is not among the generally accepted accounting principles______。
basisconcernmeasurement。
is a documentary letter of credit______。
conditional bank undertaking to pay an exporter on production of stipulated documentationmethod of lending against documentary securityinternational trade settlement system biased in favour of importersof the abovea group of assets reduces risk as long as the assets ______。
金融英语：FECT单项选择题汇总练习
1. Which of the following is not a function of money? ______.A. To act as a medium of exchangeB. To act as a unit of accountC. To act as a store of valueD. To provide a double coincidence of wantsE. To act as a means of payment2. The price in the foreign exchange market is called ______.A. the trade surplusB. the exchange rateC. the money priceD. the currency rate3. Market risk refers to the risk of______.A. financial prices fluctuationsB. defaultC. fraudD. deferred payments4. Which of the following is not among the generally accepted accounting principles? ______.A. Cash basisB. PrudenceC. ConsistencyD. Going concernE. Money measurement.5. What is a documentary letter of credit? ______.A. A conditional bank undertaking to pay an exporter on production of stipulated documentationB. A method of lending against documentary securityC. An international trade settlement system biased in favor of importersD. All of the above6. Holding a group of assets reduces risk as long as the assets ______.A. are perfectly correlatedB. are completely independentC. do not have precisely the same pattern of returnsD. have a correlation coefficient greater than one7. An amount, payable in money goods, or service, owed by a business to a creditor, is known as a/an .A. liabilityB. debtC. equityD. asset8. What function is money serving when you buy a ticket to a movie? ______.A. store of valueB. a medium of exchangeC. transaction demandD. a unit of account9. If foreigners expect that the future price of sterling will be lower, the ______.A. supply of sterling will increase, demand for sterling will fall, and the exchange rate will fallB. supply of sterling will increase, demand for sterling will rise, and the exchange rate may or may not increaseC. supply of sterling will fall, demand for sterling will increase, and the exchange rate will riseD. supply of sterling will fall, demand for sterling will fall, and the exchange rate may or may not fall10. The documentary collection provides the seller with a greater degree of protection than shipping on ______.A. open accountB. bank's letter of guaranteeC. banker's draftD. documentary credit11. Which of the following statements is not true of central banks? ______.A. They pay the government's salariesB. They always undertake the regulation of the banking systemC. They are always the lender of last resortD. None of the above12. When GBP/USD rate goes from 1.6150 to 1.8500, we say the dollar ______.A. appreciates by 12.70%B. depreciates by 14.55%C. depreciates by 12.70%D. appreciates by 14.55%13. According to diversification principle in investment, suppose you invest Stock X and Stock Y with equal funds, which of the following is not true? ______.A. If X and Y are totally independent with each other, the risk of the portfolio is reducedB. If X and Y are perfectly negatively correlated, the risk of the portfolio is perfectlyoffsetC. If X and Y are perfectly positively correlated, the risk of the portfolio is neither reduced nor increasedD. If X and Y are perfectly negatively correlated, the risk of the portfolio is neither reduced nor increased14. These are four main methods of securing payment in international trade:(1) Payment under documentary credit(2) Open account(3) Collection that is document against payment or acceptance of a bill of exchange(4) Payment in advanceFrom an exporter's point of view, the order of preference is ______.A. (4) , (2) , (3) , (1)B. (4) , (1) , (3) , (2)C. (4) , (3) , (1) , (2)D. (2) , (4) , (1) , (3)15. The main liability on a bank balance sheet is ______.A. depositsB. capital and reservesC. loans and overdraftsD. cash16. ______ shows that net income for a specified period of time and how it was calculated.A. The income statementB. The capital statementC. The accounting statementD. The statement of financial condition17. Why must the liabilities and assets of a bank be actively managed? ______.A. Because assets and liabilities are not evenly matched on the same time scaleB. Because assets and liabilities are evenly matchedC. Because the inter bank market uses LIBORD. Because assets and liabilities can be underwritten18. If the expected returns of two risky assets have a perfect negative correlation, then risk .A. is increasedB. falls to zeroC. is unaffectedD. is reduced by one-half19. A possible disadvantage of freely fluctuating exchange rates with no officialintervention is that .A. some nations would experience continual deficitsB. the exchange rates may experience wide and frequent fluctuationsC. nations would no longer be able to undertake domestic policies designed to achieve and maintain full employmentD. nations would need a larger supply of international reserves than otherwise20. What are your GBP/USD position and the average rate if you sell £4m at 1.6350 buy £5m at 1.6340 and sell $5m at 1.6348?A. Short £2 058 478.10 long $3 370 000 at 1.6371B. Long £5 941 521.90 short $9710 000 at 1.6342C. Short £5 941 521.90 long $9 710 000 at 1.6342D. Long £4 058 478.10 short $6 630 000 at 1.6336答案：1.D2.B3.A4.A5.A6.C7.A8.B9.A 10.A11.B 12.B 13.D 14.B 15.A 16.A 17.A 18.B 19.B 20.DBear Market Normal Market Bull Market Probability 0.2 0.5 0.3Stock X_ -20% 18% 50%Stock Y -15% 20% 10%1. What are the expected returns for Stocks X and Y respectively? ______.A. 20% and 10%B. 18% and 12%C. 20% and 11%D. 18% and 5%2. Which of the following payment terms eliminates the exchange risk, assuming the exporter invoices in foreign currency? ______.A. Confirmed irrevocable documentary creditB. Open accountC. Documentary collection D/AD. None of the above3. ABC Co. Ltd. purchased a car for $ 12 000, making a down payment of $5 000 cash and signing a $7 000 note payable due in 60 days. Which of the following is not correct? ______.A. From the viewpoint of a short-term creditor, this transaction makes the business less solventB. Total liabilities increased by $7 000C. Total assets increased by $12 000D. This transaction had no immediate effect on the owner's equity in the business4. Which of the following terms of payment will entirely eliminate country risk? ______.A. Revocable documentary creditsB. Confirmed Irrevocable documentary creditsC. Documentary collection D/PD. Documentary collection D/A5. The expiry date of a documentary credit is Sunday, 24 February, and documents have to be a presented to you. Which of the following is an acceptable presentation? (Assume there is no latest stated date for shipment stipulated.) ______.A. Presentation to you on Monday 25 February with the bill of lading dated 25 FebruaryB. Presentation on Monday 25 February with the bill of lading dated Sunday 24 FebruaryC. Presentation on Tuesday 26 February with the bill of lading dated Sunday 24 FebruaryD. Presentation on Friday 22 February with the bill of lading dated Sunday 29 January6. What are the standard deviations of returns on Stocks X and Y respectively? ______.A. 15% and 26%B. 24% and 13%C. 20% and 4%D. 28% and 8%7. Who makes the first presentation of documents under a transferable credit? ______.A. ApplicantB. First beneficiaryC. Second beneficiaryD. None of the above8. A transaction caused a $10 000 decrease in both total assets and total liabilities. This transaction could have been ______.A. repayment of a $ 10 000 bank loanB. an asset with a cost of $10000 was destroyed by fireC. purchase of a delivery truck for $10 000 cashD. collection of a $10 000 account receivable9. Money ceases to serve as an effective store of value when ______.A. the government runs large deficitsB. the unemployment rate is very highC. productivity in the economy declinesD. rapid inflation occurs10. An indication that the money supply is greater than the desirable amount would be .A. insufficient spending and excessive savingB. deflationC. inadequate spending and rising unemploymentD. rising wages and prices11. If a nation's interest rates are relatively low compared to those of other countries, then the exchange value of its currency will tend to ______ under a system of exchange rates.A. appreciate... floatingB. depreciate...floatingC. appreciate... fixedD. depreciate... fixed12. Which of the following is true of a company's balance sheet? ______.A. It displays sources and uses of cash for the periodB. It is unnecessary if both an income statement and a statement of cash flows are availableC. It is a separate representation of the company's revenue and expense transactions for the yearD. It is an expansion of the basic accounting equation of Assets=Liabilities Owner's Equity13. When Americans or foreigners expect the return on dollar deposits to be high relative to the return on foreign deposits, there is a ______ demand for dollar deposits and a correspondingly ______ demand for foreign deposits.A. higher... higherB. lower... higherC. higher... lowerD. lower...lower14. Velocity is the ______.A. inverse of GNPB. speed at which checking accounts are converted into cashC. relationship between the price level and the money supplyD. rate at which money turns over15. Assume that of your $10 000 portfolio, you invest $9 000 in Stock X and $1 000 in Stock Y. What is the expected return on your portfolio? ______.A. 18%B. 20%C. 19%D. 3%16. Which of the following would you expect to find in a correctly prepared income statement? .A. Cash balance at the end of the periodB. Expenses incurred during the period to earn revenuesC. Contributions by the owner during the periodD. The reported company's financial position at a specific date17. The concept of beta is most closely associated with ______.A. correlation coefficientB. the capital asset pricing modelC. nonsystematic riskD. mean-variance analysis18. The velocity of money for a given year can be calculated by ______.A. dividing GNP by the money supplyB. dividing aggregate supply by aggregate demandC. dividing the price level by the money supplyD. multiplying the price level by total output19. The theory of purchasing power parity states that exchange rates between any two currencies will adjust to reflect changes in ______.A. the price levels of the two countriesB. the current account balances of the two countriesC. the fiscal policies of the two countriesD. the trade balances of the two countries20. Before issuing a credit, it is important for the issuing bank ______.A. to make certain of the importer's creditworthinessB. to go through the contract termsC. to have a thorough understanding of the exporterD. all of the above答案：1.A2.D3.C4.B5.B6.B7.C8.A9.D 10.D11.B 12.D 13.C 14.D 15.C 16.B 17.B 18.A 19.A 20.A1. Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract? ______.A. Import of goods priced in a foreign currencyB. Import of goods priced in RMBC. Export of goods priced in RMBD. Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract2. Incoterms address ______.A. the risks of loss between the partiesB. breaches of contractC. ownership rightsD. type of ship used3. Which of the following is or was an example of representative full-bodied money? ______.A. Debt moneyB. ATS accountC. Gold certificateD. Demand deposit4. Risks associated with investing in foreign countries are the following except ______.A. voting riskB. exchange rate riskC. country riskD. political risk5. An exporter sells goods to a customer abroad on FOB and on CIF term. Who is responsible for the freight charges in each? ______.A. Exporter; ExporterB. Exporter; ImporterC. Importer; ImporterD. Importer; Exporter6. Default risk refers to the possibility that a borrower may ______.A. be unable to repay the principal on his loanB. be unable to make the interest payments on his loanC. go bankruptD. all of the above7. What is the reserve requirement? ______.A. The requirement of a bank to deposit a percentage of moneyB. The requirement for deposits in cashC. The percentage of a bank's deposits in the form of cash reservesD. The requirement for cash reserves8. A draft is like a check that can be endorsed but it isn't a title to goods, like ______.A. a bill of ladingB. an inspection certificateC. a certificate of originD. an insurance certificate9. Arbitrage ______.A. is a general economic term for buying something where it is cheap and selling it where it is dearB. keeps exchange rates consistent across marketsC. has been outlawed by the International Monetary FundD. cannot occur where there is a forward exchange marketE. both A and B10. What is the purpose of comparing the ledger entries with the documents? ______.A. To prove that all the transactions have made for the right amountsB. To prove that all the accounts have been posted correctlyC. To check the number of all the debits and creditsD. To post the right accounts11. What is Dollar Cost Averaging? ______.A. A brokerage account that gives investors cheap tradesB. The idea that prices tend to rise over the long termC. Buying stocks that are below average in valueD. A flat quarterly mutual fund fee averaged throughout the yearE. A strategy of investing money on a regular basis to take advantage of market fluctuations12. From a Chinese bank's point of view, the currency account which it maintains abroad is known as______, while a RMB account operated in China for a foreign bank is termed ______.A. a vostro account... a nostro accountB. a vostro account…a mirror accountC. a mirror account…a nostro accountD. a nostro account... a vostro account13. Under FOB terms the bill of lading would state goods ______.A. loaded on board, freight payable at destinationB. loaded on board, freight paidC. received for shipment, freight paidD. received for shipment, freight payable at destination14. The liabilities of the bank as shown in its balance sheet represent the ______ which it uses in its business.A. sources of the fundsB. share capitalC. investmentsD. advances to customers15. International payments and other messages are often sent through an international computer network called ______.A. CHAPSB. BACSC. SWIFTD. EIMT16. Low levels of uncertainty (risk) are associated with .A. stocksB. stock optionsC. higher potential returnsD. lower potential returns17. Government securities would appear on a commercial bank's balance sheet as ______.A. an assetB. reservesC. part of net worthD. a liability18. A major problem with a fixed exchange rate system is that when countries run foreign trade deficits, ______.A. there is no self-correcting mechanismB. currency values become unstableC. the value of the reserve currency declinesD. world inflation increases19. In a particular economy banks are required to keep 25 percent of all deposits in the form of reserves; this gives a credit-creation multiplier of ______.A. fourB. threeC. twoD. five20. Regulation of the money supply and financial markets is referred to as ______.A. fiscal policyB. income policyC. monetary policyD. budgetary policy答案：1.A2.A3.C4.A5.D6.D7.A8.A9.E 10.B11.E 12.D 13.A 14.A 15.C 16.D 17.A 18.A 19.A 20.C1. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .A. imports automatically increaseB. currency automatically depreciatesC. exports automatically declineD. currency automatically appreciates2. Which of the following statements is not true of accounting? ______.A. Accounting is language of businessB. The user of accounting includes business, government, nonprofit organizations and individuals.C. Accounting is useful for decision makingD. Accounting is an end rather than a means to an end3. The term foreign exchange is best defined by the following statement: it is ______.A. the rate of exchange between two currenciesB. synonymous with currency exchangeC. the place in which foreign currencies is exchangedD. an instrument such as paper currency, note, and check used to make payments between countries4. What is Asset Allocation? ______.A. Buying assets of different types, risks, and potential returnsB. Buying assets with more than one brokerage accountC. The ability to buy mutual fundsD. Buying stocks for the long term5. External users of financial accounting information include all of the following except .A. suppliersB. line managersC. general publicD. creditors6. CAPM is short for .A. Capital Asset Pricing ModelB. Cash Added Price MatrixC. Capital Asset Pricing MatrixD. Cost and Price Model7. Liquidity measures the ______.A. value of an assetB. ease with which an asset can be exchangedC. usefulness of an assetD. economic and monetary reliability of an asset compared with other assets8. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.A. documents... the creditB. merchandise... the contractC. documents... the contractD. merchandise...the buyer ordered9. A barter economy is one that does not possess _______.A. any wealthB. printed currencyC. a medium of exchangeD. gold10. Which of the following is not true of airway bill? ______.A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goodsB. Airway bill is a document of title to the goodsC. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flightD. None of the above1. When a country runs a foreign trade deficit under a flexible foreign exchange rate system，its .A. imports automatically increaseB. currency automatically depreciatesC. exports automatically declineD. currency automatically appreciates2. Which of the following statements is not true of accounting? ______.A. Accounting is language of businessB. The user of accounting includes business, government, nonprofit organizations and individuals.C. Accounting is useful for decision makingD. Accounting is an end rather than a means to an end3. The term foreign exchange is best defined by the following statement: it is ______.A. the rate of exchange between two currenciesB. synonymous with currency exchangeC. the place in which foreign currencies is exchangedD. an instrument such as paper currency, note, and check used to make payments between countries4. What is Asset Allocation? ______.A. Buying assets of different types, risks, and potential returnsB. Buying assets with more than one brokerage accountC. The ability to buy mutual fundsD. Buying stocks for the long term5. External users of financial accounting information include all of the following except .A. suppliersB. line managersC. general publicD. creditors6. CAPM is short for .A. Capital Asset Pricing ModelB. Cash Added Price MatrixC. Capital Asset Pricing MatrixD. Cost and Price Model7. Liquidity measures the ______.A. value of an assetB. ease with which an asset can be exchangedC. usefulness of an assetD. economic and monetary reliability of an asset compared with other assets8. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.A. documents... the creditB. merchandise... the contractC. documents... the contractD. merchandise...the buyer ordered9. A barter economy is one that does not possess _______.A. any wealthB. printed currencyC. a medium of exchangeD. gold10. Which of the following is not true of airway bill? ______.A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goodsB. Airway bill is a document of title to the goodsC. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flightD. None of the above11. The value of money varies _____.A. directly with the unemployment rateB. directly with the price levelC. inversely with the unemploymentD. inversely with the price level12. The economics news on the television reports that the dollar has strengthened relative to the Japanese yen. This means that ______.A. the dollar has depreciated relative to the yenB. the dollar can now purchase more yenC. the yen can now purchase more dollarsD. the US trade balance with the Japanese economy has improved13. The theory of international exchange that holds that exchange rates are set so that the price of similar goods in different countries is the same is the ______.A. price feedback theoryB. trade feedback theoryC. purchasing power parity theoryD. J-curve theory14. According to the optimal portfolio theory, where should portfolios lie? ______.A. On the efficient frontierB. Above the efficient frontierC. Under the efficient frontierD. Anywhere, as long as the portfolio is diversified15. Which of the following is not a user of management accounting information? ______.A. Store managerB. CreditorC. CEOD. CFO16. Based on the scenarios below, what is the expected return for a portfolio with the following return profile? ______.Market ConditionBear Normal BullProbability 02 0.3 05Rate of return —25% 10% 24%A. 4%B. 10%C. 20%D. 25%Use the following expectations on Stocks X and Y to answer questions 17 through 19 (round to the nearest percent).Bear Market Normal Market Bull MarketProbability 0.2 0.5 0.3Stock X_ -20% 18% 50%Stock Y -15% 20% 10%17. Financial markets serve to channel funds from ______.A. the government to contractorsB. investors to consumersC. consumers to producersD. savers to investors18. The agreements that were reached at the Bretton Woods conference in 1944 established a system .A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed-upon value of its currencyB. of floating exchange rates determined by the supply and demand of one nation's currency relative to the currency of other nationsC. that prohibited governments from intervening in the foreign exchange marketsD. in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading19. Which of the following statements is not consistent with generally accepted accounting principles relating to asset valuation? .A. Assets are originally recorded in accounting records at their cost to the business entityB. Accountants prefer to base the valuation of assets upon objective, verifiable evidence rather than upon appraisals or personal opinionC. Accountants assume that assets such as office supplies, land and buildings will be used in business operations rather than sold at current market pricesD. Subtracting total liabilities from total assets indicates what the owner's equity in the business is worth under current market conditions20. A fiscal expansion in the UK ______ the pound sterling.A. tends to appreciateB. tends to depreciateC. does not affect the price ofD. has no predictable effect on the price of答案：1.B2.D3.D4.A5.B6.A7.B8.A9.C 10.B11.D 12.B 13.C 14.A 15.B 16.B 17.A 18.A 19.D 20.A。
金融英语单选测题1
金融英语单选测题1金融英语单选测题—FECT（1）1. Which of the following is not a function of money? ___D___.A. To act as a medium of exchangeB. To act as a unit of accountC. To act as a store of valueD. To provide a double coincidence of wantsE. To act as a means of payment2. The price in the foreign exchange market is called ______.A. the trade surplusB. the exchange rateC. the money priceD. the currency rate3. Market risk refers to the risk of______.A. financial prices fluctuationsB. defaultC. fraudD. deferred payments4. Which of the following is not among the generally accepted accounting principles? ___ ___.A. Cash basisB. PrudenceC. ConsistencyD. Going concernE. Money measurement.5. What is a documentary letter of credit? ______.A. A conditional bank undertaking to pay an exporter on production of stipulated documen tationB. A method of lending against documentary securityC. An international trade settlement system biased in favour of importersD. All of the above6. Holding a group of assets reduces risk as long as the assets ______.A. are perfectly correlatedB. are completely independentC. do not have precisely the same pattern of returnsD. have a correlation coefficient greater than one7. An amount, payable in money goods, or service, owed bya business to a creditor, is k nown as a/an .A. liabilityB. debtC. equityD. asset8. What function is money serving when you buy a ticket toa movie? ______.A. store of valueB. a medium of exchangeC. transaction demandD. a unit of account9. If foreigners expect that the future price of sterling 纯银will be lower, the ___c___.A. supply of sterling will increase, demand for sterling will fall, and the exchange rate will fallB. supply of sterling will increase, demand for sterling will rise, and the exchange rate may or may not increaseC. supply of sterling will fall, demand for sterling will increase,and the exchange rate will riseD. supply of sterling will fall, demand for sterling will fall, and the exchange rate may or may not fall。
金融英语：FECT-1选题(1)
金融英语：FECT－1选题（1）1．Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract? ______．A．Import of goods priced in a foreign currencyB．Import of goods priced in RMBC．Export of goods priced in RMBD．Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract2．Incoterms address ______．A．the risks of loss between the partiesB．breaches of contractC．ownership rightsD．type of ship used3．Which of the following is or was an example of representative full－bodied money? ______．A．Debt moneyB．ATS accountC．Gold certificateD．Demand deposit4．Risks associated with investing in foreign countries are the following except ______．A．voting riskB．exchange rate riskC．country riskD．political risk5．An exporter sells goods to a customer abroad on FOB and on CIF term．Who is responsible for the freight charges in each? ______．A．Exporter；ExporterB．Exporter；ImporterC．Importer；ImporterD．Importer；Exporter6．Default risk refers to the possibility that a borrower may ______．A．be unable to repay the principal on his loanB．be unable to make the interest payments on his loanC．go bankruptD．all of the above7．What is the reserve requirement? ______．A．The requirement of a bank to deposit a percentage of moneyB．The requirement for deposits in cashC．The percentage of a bank's deposits in the form of cash reservesD．The requirement for cash reserves8．A draft is like a check that can be endorsed but it isn't a title to goods，like ______．A． a bill of ladingB．an inspection certificateC．a certificate of originD．an insurance certificate9．Arbitrage ______．A．is a general economic term for buying something where it is cheap and selling it where it is dearB．keeps exchange rates consistent across marketsC．has been outlawed by the International Monetary FundD．cannot occur where there is a forward exchange marketE．both A and B10．What is the purpose of comparing the ledger entries with the documents? ______．A．To prove that all the transactions have made for the right amountsB．To prove that all the accounts have been posted correctlyC．To check the number of all the debits and creditsD．To post the right accounts11．What is Dollar Cost Averaging? ______．A． A brokerage account that gives investors cheap tradesB．The idea that prices tend to rise over the long termC．Buying stocks that are below average in valueD． A flat quarterly mutual fund fee averaged throughout the yearE．A strategy of investing money on a regular basis to take advantage of market fluctuations 12．From a Chinese bank's point of view，the currency account which it maintains abroad is known as______，while a RMB account operated in China for a foreign bank is termed ______．A． a vostro account．．． a nostro accountB． a vostro account…a mirror accountC． a mirror account…a nostro accountD． a nostro account．．． a vostro account13．Under FOB terms the bill of lading would state goods ______．A．loaded on board，freight payable at destinationB．loaded on board，freight paidC．received for shipment，freight paidD．received for shipment，freight payable at destination14．The liabilities of the bank as shown in its balance sheet represent the ______ which it uses in its business．A．sources of the fundsB．share capitalC．investmentsD．advances to customers15．International payments and other messages are often sent through an international computer network called ______．A．CHAPSB．BACSC．SWIFTD．EIMT16．Low levels of uncertainty （risk）are associated with ．A．stocksB．stock optionsC．higher potential returnsD．lower potential returns17．Government securities would appear on a commercial bank's balance sheet as ______．A．an assetB．reservesC．part of net worthD． a liability18． A major problem with a fixed exchange rate system is that when countries run foreign trade deficits，______．A．there is no self－correcting mechanismB．currency values become unstableC．the value of the reserve currency declinesD．world inflation increases19．In a particular economy banks are required to keep 25 percent of all deposits in the form of reserves；this gives a credit－creation multiplier of ______．A．fourB．threeC．twoD．five20．Regulation of the money supply and financial markets is referred to as ______．A．fiscal policyB．income policyC．monetary policyD．budgetary policy答案：1．A2．A3．C4．A5．D6．D7．A8．A9．E10．B11．E12．D13．A14．A15．C16．D17．A18．A19．A20．C。
金融专业英语证书考试FECT单选练习100题-2
金融专业英语证书考试FECT单选练习100题-21. Usually the low interest rate currency trades at a ______ to the high interest rate currency in the forward market.A. premiumB. parC. discountD. bar2. Which of the following statements about standby letters of credit is true ______.A. They can serve as a guarantee to a buyer against a seller defaultingB. They are contrary to the general rule that letters of credit may only be used for the actual movement of goodsC. They are unlike a tender (or other) bond in their legal standing and method of operationD. They are unlike a tender bond with its fixed expiry date3. The most liquid of all assets is ______.A. the stock of commercial banksB. M 1C. intelligenceD. the debt of major corporations4. Beta and standard deviation differ as risk measures in that beta measures ______.A. only unsystematic risk, while standard deviation measures total riskB. only systematic risk, while standard deviation measures total riskC. both systematic and unsystematic risk, while standard deviation measures only unsystematic riskD. both systematic and unsystematic risk, while standard deviation measures only systematic risk5. What information would you find in a statement of cash flows that you would not be able to get from the other two primary financial statements ______.A. Cash provided by or used in financing activitiesB. Cash balance at the end of the periodC. Total liabilities due to creditors at the end of the periodD. Net income6. An analyst estimates that a stock has the following probabilities of return depending on the state of the economy:The expected return of the stock is ______.A.7.8% C. %D. %B. %7. According to the rules of debit and credit for balance sheet accounts ______.A. increases in asset, liability, and owner's equity accounts are recorded by debitsB. decreases in asset and liability accounts are recorded by creditsC. increases in asset and owner's equity accounts are recorded by debitsD. decreases in liability and owner's equity accounts are recorded by debits 2658. Individuals will accept the medium of exchange in return for goods and services only if they are confident that ______.A. the inflation rate is zeroB. it possesses intrinsic valueC. they can pass it on to othersD. they can exchange it for gold9. When a country's currency appreciates, the country's goods abroad become ______ and foreign goods in that country become ______.A. cheaper... more expensiveB. more expensive... cheaperC. cheaper...cheaperD. more expensive... more expensive10. A US company is bidding for a contract in China. Its Chinese customer asks foraperformance bond. What is the most likely course of action ______.A. It asks its bank to issue a tender bond which can be converted into a performance bondB. It gives up its bidC. It consults its bank about issuing a standby letter of creditD. It asks its bank to issue a performance bond11. ABC Co. Ltd. has a $3 500 account receivable from XYZ Store. On March 20, XYZ makes a partial payment of $2 100 to ABC. The journal entry made on Mdrch 20 by ABC to record this transaction includes ______.A. a debit to the cash received account of $2 100B. a credit to the Accounts Receivable account of $2 100C. a debit to the Cash account of $1 400D. a debit to the Accounts Receivable account of $1 40012. Intervention in the foreign exchange market means the government ______.A. restricts individuals from buying and selling foreign exchangeB. restricts the importation of certain goodsC. or central bank buys or sells foreign exchangeD. devalues the currency in the foreign-exchange market13. Which of the following is not a form of countertrade ______.A. CounterpurchaseB. Buy-backC. OffsetD. Balance trade14. A credit to a revenue account ______.A. decreases revenuesB. increases equityC. decreases equityD. increases assets15. If the government guaranteed that anyone wishing a job would be provided one, the likely result would be ______.A. massive layoffsB. an increase in the money supplyC. an increase in inflationary expectationsD. the development of a barter system16. Given $100 000 to invest, what is the expected risk premium in dollars of investing in equities versus risk-free T-bills. Treasury bills) based on theA. $20000B. $18000C. $15000D. $1300017. Economists assume that most people take risks ______.A. because doing so is excitingB. only when they have no riskless alternativeC. very infrequentlyD. if they are compensated for taking the risks18. The Phillips Curve shows the relationship between ______.A. aggregate demand and aggregate supplyB. interest rates and inflationC. recessions and boomsD. inflation and the unemployment rate19. In a fixed exchange rate system, speculative selling of a currency is based on anticipation of .A. appreciationB. devaluationC. a foreign trade surplusD. interest rate increase20. A collecting bank is employed by ______.A. the principalB. the remitting bankC. the drawerD. the drawee, who is its customer21. The following statements describing net income are all correct except that ______.A. net income is computed in the income statement, appears in the statement of owner's equity, and increases owner's equity in the balance sheetB. net income is equal to revenues minus expensesC. net income is computed in the income statement, appears in the statement of owner's equity, and increases the amount of cash shown in the balance sheetD. net income can be determined using the account balances appearing in an adjusted trial balance22. A strong dollar encourages ______.A. travel to the United States by foreignersB. purchase of American goods by foreignersC. Americans to travel abroadD. Americans to save dollars23. In what circumstances would the beneficiary of a confirmed documentary credit not receive payment ______.A. Failure of the applicantB. Failure of the issuing bankC. Failure to fulfil the credit termsD. Failure to fulfil the commercial contract24. The balance in the owner's capital account of ABC Co. Ltd. at the beginning of the year was $65 000. During the year, the company earned revenue of $430 000 and incurred expenses of $360 000, the owner withdrew $50 000 in assets, and the balance of the Cash account increased by $10 000. At year-end, the company's net income and the year-end balance in the owner's capital account were, respectively .A. $20 000 and $95 000B. $70 000 and $95 000C. $70 000 and $85 000D. $60 000 and $75 00025. Assume the inflation rate is expected to be 5 percent and the unemployment rate is 8 percent. If workers wish to get a 2 percent real wage increase, they should bargain for a money wage increase of______.A. 3 percentB. 5 percentC. 7 percentD. 13 percent26. Which statement about portfolio diversification is correct .A. Proper diversification can reduce or eliminate systematic riskB. As more securities are added to a portfolio, total risk typically would be expected to fall at a decreasing rateC. The risk-reducing benefits of diversification do not occur meaningfully until at least 30 individual securities are included in the portfolioD. Diversification reduces the portfolio's expected return because it reduces a portfolio's total risk27. Your customer is the applicant for a documentary credit. Which of the following points would appear to be illogical if they appeared on the application form ______.A. Invoice price shown as FOB, bills of lading to be marked freight paidB. Last date for shipment one week before expiry dateC. Invoice price shown as C&F, but no insurance document requestedD. No mention of the latest date of shipment28. Portfolio theory as described by Markowitz is most concerned with ______.A. the effect of diversification on portfolio riskB. B. the elimination of systematic riskC. active portfolio management to enhance returnD. the identification of unsystematic risk29. Commercial bank deposits with the central bank are part of the bank's______.A. net worthB. demand depositsC. loan portfolioD. reserves30. Foreign trade can be conducted on the following terms except for ______.A. open accountB. documentary collectionC. documentary creditsD. public bonds31。
金融英语(FECT)考试模拟练习题大汇总
1. Which of the following is not a function of money? ______.A. To act as a medium of exchangeB. To act as a unit of accountC. To act as a store of valueD. To provide a double coincidence of wantsE. To act as a means of payment2. The price in the foreign exchange market is called ______.A. the trade surplusB. the exchange rateC. the money priceD. the currency rate3. Market risk refers to the risk of______.A. financial prices fluctuationsB. defaultD. deferred payments4. Which of the following is not among the generally accepted accounting principles? ______.A. Cash basisB. PrudenceC. ConsistencyD. Going concernE. Money measurement.5. What is a documentary letter of credit? ______.A. A conditional bank undertaking to pay an exporter on production of stipulated documentationB. A method of lending against documentary securityC. An international trade settlement system biased in favour of importersD. All of the above6. Holding a group of assets reduces risk as long as the assets ______.A. are perfectly correlatedB. are completely independentC. do not have precisely the same pattern of returnsD. have a correlation coefficient greater than one7. An amount, payable in money goods, or service, owed by a business to a creditor, is known as a/an .A. liabilityB. debtC. equityD. asset8. What function is money serving when you buy a ticket to a movie? ______.A. store of valueB. a medium of exchangeC. transaction demandD. a unit of account9. If foreigners expect that the future price of sterling will be lower, the ______.A. supply of sterling will increase, demand for sterling will fall, and theexchange rate will fallB. supply of sterling will increase, demand for sterling will rise, and theexchange rate may or may not increaseC. supply of sterling will fall, demand for sterling will increase, and the exchange rate will riseD. supply of sterling will fall, demand for sterling will fall, and the exchange rate may or may not fall10. The documentary collection provides the seller with a greater degree of protection than shipping on ______.A. open accountB. bank's letter of guaranteeC. banker's draftD. documentary credit11. Which of the following statements is not true of central banks? ______.A. They pay the government's salariesB. They always undertake the regulation of the banking systemC. They are always the lender of last resortD. None of the above12. When GBP/USD rate goes from 1.6150 to 1.8500, we say the dollar ______.A. appreciates by 12.70%B. depreciates by 14.55%C. depreciates by 12.70%D. appreciates by 14.55%13. According to diversification principle in investment, suppose you invest Stock X and Stock Y with equal funds, which of the following is not true? ______.A. If X and Y are totally independent with each other, the risk of the portfolio is reducedB. If X and Y are perfectly negatively correlated, the risk of the portfolio is perfectly offsetC. If X and Y are perfectly positively correlated, the risk of the portfolio is neither reduced nor increasedD. If X and Y are perfectly negatively correlated, the risk of the portfolio is neither reduced nor increased14. These are four main methods of securing payment in international trade:(1) payment under documentary credit(2) open account(3) collection, that is document against payment or acceptance of a bill of exchange(4) payment in advanceFrom an exporter's point of view, the order of preference is ______.A. (4) , (2) , (3) , (1)B. (4) , (1) , (3) , (2)C. (4) , (3) , (1) , (2)D. (2) , (4) , (1) , (3)15. The main liability on a bank balance sheet is ______.A. depositsB. capital and reservesC. loans and overdraftsD. cash16. ______ shows that net income for a specified period of time and how it was calculated.A. The income statementB. The capital statementC. The accounting statementD. The statement of financial condition17. Why must the liabilities and assets of a bank be actively managed? ______.A. Because assets and liabilities are not evenly matched on the same time scaleB. Because assets and liabilities are evenly matchedC. Because the interbank market uses LIBORD. Because assets and liabilities can be underwritten18. If the expected returns of two risky assets have a perfect negative correlation, then risk .A. is increasedB. falls to zeroC. is unaffectedD. is reduced by one-half19. A possible disadvantage of freely fluctuating exchange rates with no official intervention is that .A. some nations would experience continual deficitsB. the exchange rates may experience wide and frequent fluctuationsC. nations would no longer be able to undertake domestic policies designed to achieve and maintain full employmentD. nations would need a larger supply of international reserves than otherwise20. What are your GBP/USD position and the average rate if you sell ￡4m at 1.6350 buy ￡5m at 1.6340 and sell $5m at 1.6348?A. Short ￡2 058 478.10 long $3 370 000 at 1.6371B. Long ￡5 941 521.90 short $9710 000 at 1.6342C. Short ￡5 941 521.90 long $9 710 000 at 1.6342D. Long ￡4 058 478.10 short $6 630 000 at 1.633621. A correlation coefficient of +1.0 means two stocks are ______.A. perfectly negatively correlatedB. opposite the market betaC. equal to the market betaD. perfectly positively correlated22. The percentage analysis of increases and decreases in corresponding items in comparative financial statements is called ______.A. external analysisB. horizontal analysisC. vertical analysisD. comparative analysis23. What is the name of the document which can make a buyer feel confident that goods are of a certain standard? ______.A. Inspection certificateB. Commercial invoiceC. Insurance policyD. Certificate of origin24. Sometimes financial intermediaries by "borrowing short and lending long" find themselves in difficult financial situations because .A. short-term rates are fallingB. long-term rates are risingC. deposits increase too rapidlyD. short-term rates rise relative to rates of their holdingsE. long-term rates rise more sharply than short-term rates25. Incoterms were written ______.A. by the International Chamber of CommerceB. under the United Nations Convention for the International Sale of Goods (Vienna Convention )C. under the Kyoto Protocols as adopted in 2000D. under "fast track" authority granted by the U.S. Congress26. The purpose of keeping account is to .A. determine whether the business has made a profit or a lossB. find out why the business has lost moneyC. see how much has been spentD. find out why the business cannot fulfil its commitments27. If reserves are 20 percent, then the multiplier effect will be ______ times, so the original deposit of RMB40 000 can create up to ______ of new deposits.A. 5……RMB200000B. 4……RMB120000C. 3……RMB80000D. 6……RMB2000028. ABC Company is the beneficiary of a confirmed irrevocable letter of credit. ______ bank ( s ) will assure the company that it will be paid.A. OneB. NoneC. ThreeD. Two29. Legal tender includes .A. notes and coinsB. notes onlyC. coins onlyD. notes, coins and checks30. The following are the basic functions of a bill of lading except to act as ______.A. a receipt for the goods from the shipping company to the exporterB. a document of title for goods being shipped overseasC. a certificate of origin, which certifies that the goods were produced in a particular countryD. evidence of the carriage contract between the exporter and the carrier31. Persistent foreign trade deficits under a flexible exchange rate system usually lead to ______.A. inflation in the domestic economyB. speculation of future devaluationC. falling interest ratesD. rising imports32. The additional amount paid in buying or selling a currency at a given future date is called .A. premiumB. commissionC.tariffD. dividend33. Banks manage their assets considering ______.A. riskB. some optimum combination of the aboveC. earningsD. liquidity34. What is the function of the book-keeping system in bank accounting? ______.A. To prove that all the day's transactions have gone through for the right amountB. To prove that all the day's transactions have all been posted to the right accountC. To prove that the fresh balance of those accounts is correct after recording the transactionsD. All of the above35. The risk that is specific to individual stocks is called ______.A. systematic riskB. country riskC. unsystematic riskD. market risk36. The main objective of the Exchange Equalization Account is to ______.A. prevent undue fluctuation in the exchange value of one country's own currency against other currenciesB. control the rate of inflationC. ensure that notes and coins continue to be acceptable as a medium of exchangeD. permit the exchange of payments between banks37. How can you prove that no transactions are missing or wrong at the end of the day? ______.A. There is no other way than have these transactions reposted to the proper entriesB. We can examine all the transactions carefully and find the wrong recordsC. We can balance the total debits and the total credits by calculating them againD. We can do that by checking the total debits and the total credits to see whether they are in state of balance38. Money _____.A. serves as the critical function of a medium of exchangeB. facilitates trade in goods and servicesC. overcomes the inefficiencies of barterD. all of the above39. If dealers buy currency forward but do not sell forward at the same time, their position is known as .A. shortB. forerunnerC. speculationD. long40. Incoterms apply ______.A. only if clearly incorporated into the contract of saleB. to International shipments beyond a certain tonnageC. to international shipments under the Uniform Commercial CodeD. to all international shipments of goods41. Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract? ______.A. Import of goods priced in a foreign currencyB. Import of goods priced in RMBC. Export of goods priced in RMBD. Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract42. Incoterms address ______.A. the risks of loss between the partiesB. breaches of contractC. ownership rightsD. type of ship used43. Which of the following is or was an example of representative full-bodied money? ______.A. Debt moneyB. ATS accountC. Gold certificateD. Demand deposit44. Risks associated with investing in foreign countries are the following except ______.A. voting riskB. exchange rate riskC. country riskD. political risk45. An exporter sells goods to a customer abroad on FOB and on CIF term. Who is responsible for the freight charges in each? ______.A. Exporter; ExporterB. Exporter; ImporterC. Importer; ImporterD. Importer; Exporter46. Default risk refers to the possibility that a borrower may ______.A. be unable to repay the principal on his loanB. be unable to make the interest payments on his loanC. go bankruptD. all of the above47. What is the reserve requirement? ______.A. The requirement of a bank to deposit a percentage of moneyB. The requirement for deposits in cashC. The percentage of a bank's deposits in the form of cash reservesD. The requirement for cash reserves48. A draft is like a check that can be endorsed but it isn't a title to goods, like ______.A. a bill of ladingB. an inspection certificateC. a certificate of originD. an insurance certificate49. Arbitrage ______.A. is a general economic term for buying something where it is cheap and selling it where it is dearB. keeps exchange rates consistent across marketsC. has been outlawed by the International Monetary FundD. cannot occur where there is a forward exchange marketE. both A and B50. What is the purpose of comparing the ledger entries with the documents? ______.A. To prove that all the transactions have made for the right amountsB. To prove that all the accounts have been posted correctlyC. To check the number of all the debits and creditsD. To post the right accounts51. What is Dollar Cost Averaging? ______.A. A brokerage account that gives investors cheap tradesB. The idea that prices tend to rise over the long termC. Buying stocks that are below average in valueD. A flat quarterly mutual fund fee averaged throughout the yearE. A strategy of investing money on a regular basis to take advantage of market fluctuations52. From a Chinese bank's point of view, the currency account which it maintains abroad is known as______, while a RMB account operated in China for a foreign bank is termed ______.A. a vostro account…… a nostro accountB. a vostro account…a mirror accountC. a mirror account…a nostro accountD. a nostro account…… a vostro account53. Under FOB terms the bill of lading would state goods ______.A. loaded on board, freight payable at destinationB. loaded on board, freight paidC. received for shipment, freight paidD. received for shipment, freight payable at destination54. The liabilities of the bank as shown in its balance sheet represent the ______ which it uses in its business.A. sources of the fundsB. share capitalC. investmentsD. advances to customers55. International payments and other messages are often sent through an international computer network called ______.A. CHAPSB. BACSC. SWIFTD. EIMT56. Low levels of uncertainty (risk) are associated with .A. stocksB. stock optionsC. higher potential returnsD. lower potential returns57. Government securities would appear on a commercial bank's balance sheet as ______.A. an assetB. reservesC. part of net worthD. a liability58. A major problem with a fixed exchange rate system is that when countries run foreign trade deficits, ______.A. there is no self-correcting mechanismB. currency values become unstableC. the value of the reserve currency declinesD. world inflation increases59. In a particular economy banks are required to keep 25 percent of all deposits in the form of reserves; this gives a credit-creation multiplier of ______.A. fourB. threeC. twoD. five60. Regulation of the money supply and financial markets is referred to as ______.A. fiscal policyB. income policyC. monetary policyD. budgetary policy61. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .A. imports automatically increaseB. currency automatically depreciatesC. exports automatically declineD. currency automatically appreciates62. Which of the following statements is not true of accounting?______.A. Accounting is language of businessB. The user of accounting includes business, government, nonprofit organizations and individuals.C. Accounting is useful for decision makingD. Accounting is an end rather than a means to an end63. The term foreign exchange is best defined by the following statement: it is ______.A. the rate of exchange between two currenciesB. synonymous with currency exchangeC. the place in which foreign currencies are exchangedD. an instrument such as paper currency, note, and check used to make payments between countries64. What is Asset Allocation? ______.A. Buying assets of different types, risks, and potential returnsB. Buying assets with more than one brokerage accountC. The ability to buy mutual fundsD. Buying stocks for the long term65. External users of financial accounting information include all of the following except .A. suppliersB. line managersC. general publicD. creditors66. CAPM is short for .A. Capital Asset Pricing ModelB. Cash Added Price MatrixC. Capital Asset Pricing MatrixD. Cost and Price Model67. Liquidity measures the ______.A. value of an assetB. ease with which an asset can be exchangedC. usefulness of an assetD. economic and monetary reliability of an asset compared with other assets68. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.A. documents…… the creditB. merchandise…… the contractC. documents…… the contractD. merchandise……the buyer ordered69. A barter economy is one that does not possess _______.A. any wealthB. printed currencyC. a medium of exchangeD. gold70. Which of the following is not true of airway bill? ______.A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goodsB. Airway bill is a document of title to the goodsC. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flightD. None of the above71. The value of money varies _____.A. directly with the unemployment rateB. directly with the price levelC. inversely with the unemploymentD. inversely with the price level72. The economics news on the television reports that the dollar has strengthened relative to the Japanese yen. This means that ______.A. the dollar has depreciated relative to the yenB. the dollar can now purchase more yenC. the yen can now purchase more dollarsD. the US trade balance with the Japanese economy has improved73. The theory of international exchange that holds that exchange rates are set so that the price of similar goods in different countries is the same is the ______.A. price feedback theoryB. trade feedback theoryC. purchasing power parity theoryD. J-curve theory74. According to the optimal portfolio theory, where should portfolios lie? ______.A. On the efficient frontierB. Above the efficient frontierC. Under the efficient frontierD. Anywhere, as long as the portfolio is diversified75. Which of the following is not a user of management accounting information? ______.A. Store managerB. CreditorC. CEOD. CFO76. Based on the scenarios below, what is the expected return for a portfolio with the following return profile? ______.Market ConditionA. 4%B. 10%C. 20%D. 25%Use the following expectations on Stocks X and Y to answer questions77. Financial markets serve to channel funds from ______.A. the government to contractorsB. investors to consumersC. consumers to producersD. savers to investors78. The agreements that were reached at the Bretton Woods conference in 1944 established a system .A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed-upon value of its currencyB. of floating exchange rates determined by the supply and demand of one nation's currency relative to the currency of other nationsC. that prohibited governments from intervening in the foreign exchange marketsD. in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading79. Which of the following statements is not consistent with generally accepted accounting principles relating to asset valuation? .A. Assets are originally recorded in accounting records at their cost to the business entityB. Accountants prefer to base the valuation of assets upon objective, verifiable evidence rather than upon appraisals or personal opinionC. Accountants assume that assets such as office supplies, land and buildings will be used in business operations rather than sold at current market pricesD. Subtracting total liabilities from total assets indicates what the owner's equity in the business is worth under current market conditions80. A fiscal expansion in the UK ______ the pound sterling.A. tends to appreciateB. tends to depreciateC. does not affect the price ofD. has no predictable effect on the price of81. What are the expected returns for Stocks X and Y respectively? ______.A. 20% and 10%B. 18% and 12%C. 20% and 11%D. 18% and 5%82. Which of the following payment terms eliminates the exchange risk, assuming the exporter invoices in foreign currency? ______.A. Confirmed irrevocable documentary creditB. Open accountC. Documentary collection D/AD. None of the above83. ABC Co. Ltd. purchased a car for $ 12 000, making a down payment of $5 000 cash and signing a $7 000 note payable due in 60 days. Which of the following is not correct? ______.A. From the viewpoint of a short-term creditor, this transaction makes the business less solventB. Total liabilities increased by $7 000C. Total assets increased by $12 000D. This transaction had no immediate effect on the owner's equity in the business84. Which of the following terms of payment will entirely eliminate country risk? ______.A. Revocable documentary creditsB. Confirmed Irrevocable documentary creditsC. Documentary collection D/PD. Documentary collection D/A85. The expiry date of a documentary credit is Sunday, 24 February, and documents have to be A presented to you. Which of the following is an acceptable presentation? (Assume there is no latest stated date for shipment stipulated.) ______.A. Presentation to you on Monday 25 February with the bill of lading dated 25 FebruaryB. Presentation on Monday 25 February with the bill of lading dated Sunday 24 FebruaryC. Presentation on Tuesday 26 February with the bill of lading dated Sunday 24 FebruaryD. Presentation on Friday 22 February with the bill of lading dated Sunday 29 January86. What are the standard deviations of returns on Stocks X and Y respectively? ______.A. 15% and 26%B. 24% and 13%C. 20% and 4%D. 28% and 8%87. Who makes the first presentation of documents under a transferable credit? ______.A. ApplicantB. First beneficiaryC. Second beneficiaryD. None of the above88. A transaction caused a $10 000 decrease in both total assets and total liabilities. This transaction could have been ______.A. repayment of a $ 10 000 bank loanB. an asset with a cost of $10000 was destroyed by fireC. purchase of a delivery truck for $10 000 cashD. collection of a $10 000 account receivable89. Money ceases to serve as an effective store of value when ______.A. the government runs large deficitsB. the unemployment rate is very highC. productivity in the economy declinesD. rapid inflation occurs90. An indication that the money supply is greater than the desirable amount would be .A. insufficient spending and excessive savingB. deflationC. inadequate spending and rising unemploymentD. rising wages and prices81. What are the expected returns for Stocks X and Y respectively? ______.A. 20% and 10%B. 18% and 12%C. 20% and 11%D. 18% and 5%82. Which of the following payment terms eliminates the exchange risk, assuming the exporter invoices in foreign currency? ______.A. Confirmed irrevocable documentary creditB. Open accountC. Documentary collection D/AD. None of the above83. ABC Co. Ltd. purchased a car for $ 12 000, making a down payment of $5 000 cash and signing a $7 000 note payable due in 60 days. Which of the following is not correct? ______.A. From the viewpoint of a short-term creditor, this transaction makes the business less solventB. Total liabilities increased by $7 000C. Total assets increased by $12 000D. This transaction had no immediate effect on the owner's equity in the business84. Which of the following terms of payment will entirely eliminate country risk? ______.A. Revocable documentary creditsB. Confirmed Irrevocable documentary creditsC. Documentary collection D/PD. Documentary collection D/A85. The expiry date of a documentary credit is Sunday, 24 February, and documents have to be A presented to you. Which of the following is an acceptable presentation? (Assume there is no latest stated date for shipment stipulated.) ______.A. Presentation to you on Monday 25 February with the bill of lading dated 25 FebruaryB. Presentation on Monday 25 February with the bill of lading dated Sunday 24 FebruaryC. Presentation on Tuesday 26 February with the bill of lading dated Sunday 24 FebruaryD. Presentation on Friday 22 February with the bill of lading dated Sunday 29 January86. What are the standard deviations of returns on Stocks X and Y respectively? ______.A. 15% and 26%B. 24% and 13%C. 20% and 4%D. 28% and 8%87. Who makes the first presentation of documents under a transferable credit? ______.A. ApplicantB. First beneficiaryC. Second beneficiaryD. None of the above88. A transaction caused a $10 000 decrease in both total assets and total liabilities. This transaction could have been ______.A. repayment of a $ 10 000 bank loanB. an asset with a cost of $10000 was destroyed by fireC. purchase of a delivery truck for $10 000 cashD. collection of a $10 000 account receivable89. Money ceases to serve as an effective store of value when ______.A. the government runs large deficitsB. the unemployment rate is very highC. productivity in the economy declinesD. rapid inflation occurs90. An indication that the money supply is greater than the desirable amount would be .A. insufficient spending and excessive savingB. deflationC. inadequate spending and rising unemploymentD. rising wages and prices91. If a nation's interest rates are relatively low compared to those of other countries, then the exchange value of its currency will tend to ______ under a system of exchange rates.A. appreciate…… floatingB. depreciate……floatingC. appreciate…… fixedD. depreciate…… fixed92. Which of the following is true of a company's balance sheet? ______.A. It displays sources and uses of cash for the periodB. It is unnecessary if both an income statement and a statement of cash flows are availableC. It is a separate representation of the company's revenue and expense transactions for the yearD. It is an expansion of the basic accounting equation ofAssets=Liabilities+Owner's Equity93. When Americans or foreigners expect the return on dollar deposits to be high relative to the return on foreign deposits, there is a ______ demand for dollar deposits and a correspondingly ______ demand for foreign deposits.A. higher…… higherB. lower…… higherC. higher…… lowerD. lower……lower94. Velocity is the ______.A. inverse of GNPB. speed at which checking accounts are converted into cashC. relationship between the price level and the money supplyD. rate at which money turns over95. Assume that of your $10 000 portfolio, you invest $9 000 in Stock X and $1 000 in Stock Y. What is the expected return on your portfolio? ______.A. 18%B. 20%C. 19%D. 3%96. Which of the following would you expect to find in a correctly prepared income statement? .A. Cash balance at the end of the periodB. Expenses incurred during the period to earn revenuesC. Contributions by the owner during the periodD. The reported company's financial position at a specific date。
金融英语：FECT-1(1)单选题
B. supply of sterling will increase, demand for sterling will rise, and the exchange rate may or may not increase
C. supply of sterling will fall, demand for sterling will increase, and the exchange rate will rise
C. Consistency
D. Going concern
E. Money measurement.
5. What is a documentary letter of credit? ______.
A. A conditional bank undertaking to pay an exporter on production of stipulated documentation
14. These are four main methods of securing payment in international trade:
(1) payment under documentary credit
(2) open account
(3) collection, that is document against payment or acceptance of a bill of exchange
D. supply of sterling will fall, demand for sterling will fall, and the exchange rate may or may not fall
金融英语模拟题以及答案
Part One ListeningSection One (10%)Directions: In this section you will hear 10 short statements. Each statement will be spoken only once. After each statement there will be a pause. During the pause, you must read the four suggested answers marked a, b, c and d, and decide which is the best answer. Now you will hear the example:She went to the bank with Mr. Smith. You will read:A. She went home.B. She liked Mr. smith.C.She went to the bank.D.She went to Mr. Smith's house. Statement C, "She went to the bank" is the closest in meaning to the statement "She went to the bank with Mr. Smith." Therefore, you should choose answer C. Now listen to the statements.1.A. The central bank controls many factors that affect the success of banking supervision.B. The success of banking supervision depends on the controls of the central bank.C. The success of banking supervision relies on many factors that are not under the control of the central bank.D. Many factors under the control of the central bank result in the success of banking supervision.2.A. You cannot sign your name on the upper left corner that does not comply with the agreement.B. Your signature does not agree with the specimen signature on the upper left corner.C. The signature on the upper left corner is not the countersign in theagreement.D. You cannot agree with the signature on the upper left corner.3.A. The Chinese banks will not come to compete with the foreign banks in Renminbi business.B. Foreign banks will be allowed to do Renminbi business which is a challenge to the Chinese banks.C. It will be a real great challenge to the Chinese banks when the foreign banks have the right to do Renminbi business.D. In order to have real competition with the Chinese banks, foreign banks should be allowed to do Renminbi business.4.A. I remitted the money to you after the sale of my stocks.B. Your bank account had been credited with the remittance since I sold my shares last week.C. The money had already been credited to your account last week after I sold my shares.D. The money had not been remitted to you since I failed to sell my stocks last week.5.A. The bank makes profits only from its own money.B. The bank makes profits not only from the deposits but also from its own money.C. The bank makes profits with special obligations to depositors.D. The bank has special obligation to make profits.6.A. We thank you for your doing kindness to us.B. We hope you send us your check as soon as possible.C. We thank you because you provide us convenience in checking.D. You will have to pay us $50,000.7.A. The Chinese economists made a proposal that banks' savings interest rates should further be lowered.B. The Chinese economists thought banks'savings interest rates should be improved. C. The Chinese economists believed that banks' savings interest rates should be maintained.D. The Chinese economists suggested that banks' savings interest rates should be kept. 8.A. We are the credit holders.B. We are the bank who can encash the card.C. We are the bank who can stop your lost card.D. We are the bank who can find your lost card.9.A. In the foreign exchange market, exchange rates are quoted by the sellers and buyers.B. In the foreign exchange market, exchange rates are quoted by commercial banks.C. In the foreign exchange market, selling and buying of foreign exchange decide exchange rates.D. In the foreign exchange market, exchange rates are fixed by governments.10.A. The bank has the right to charge you fees if your check has bounced.B. The bank will not charge you any service commission even if your check returned.C. No one reserves the right to impose a service charge for returned cheques.D. The bank has the right to impose a charge for encashed cheques.Section Two (10%)Directions: In this section, you will hear 10 short conversations. At the end of each conversation a question will be asked about what was said. The conversations and questions will be spoken only once. During the pause, you must read the four suggested answers marked a, b, c, and d, and decide which is the best answerNow you will hear : M: Does our bank have a direct correspondent relationship with the Bradalys' Bank?W:No, we don't. So we have to advise this L/C via another bank.Q: Which of the following is right?Now you will read:A. We can advise this L/C to the Bradlays' Bank.B. The Bradlays' Bank is our correspondent.C. The L/C has to be advised by a third bank.D. We should advise this L/C by ourselves.From the conversation we know that we have to advise this L/C via another bank. The best answer is C. Therefore you should choose answer C.11.A. Her account number is 60789410B. Her account number is 60798410C. Her account number is 60798401D. Her account number is 6078914012.A. in the safeB. in the drawerC. on the deskD. in the box13.A. 1.89%B. 1.98%C. 8.19%D. none14.A. to open an account with the bankB. to exchange moneyC. to check if the remittance has arrivedD. to remit some money to her brother Tony Waller15.A. employee and bossB. broker and bank clerkC. two bank clerksD. bank clerk and customer16.A. 8 hoursB. 10 hoursC. 12 hoursD. 24hours17.A. one monthB. twelve monthsC. six monthsD. half a month18.A. draw money from her account through ATM.B. write her secret code on the card.C. forget her password.D. ask somebody to pick up her card.19.A. US$ 24,580B. US$ 28,450C. US$ 45,280D. US$ 25,48020.A. Special risks will be excluded.B. You have to pay more money for the inclusion of all risks.C. Exclusion of the special risks means more money you have to pay.D. You have to pay more premium to include a special risk.Section Three (10%)Directions: In this section, you will hear 3 short passages. At the end of each passage you will hear some questions about what was said. The passages and questions wi1l be spoken only once. During the pause, you must read the four suggested answers marked a, b, c, and d, and decide which is the best answer Questions 21--23 are based on passage 121.A. threeB. fourC. fiveD. six22.A. one-dollar billB. five-dollar billC. ten-dollar billD. twenty-dollar bill23.A. by checks and fund transfersB. by CHAPS and fund transfersC. by CHIPS and fund transfersD. by SWIFT and fund transfers Questions 24-26 are based on passage 224.A. They will buy houses.B. They will buy cars.C. They will postpone building a new plant.D. They will hire more workers.25.A. because they affect consumers' willingness to spend or save.B. because they affect businesses' investment decisions.C. because interest rates are the cost of borrowings.D. both a and b.26.A. mortgage interest ratesB. car loan ratesC. interest rates on many different types of bondsD. current interest ratesQuestions 27-30 are based on Passage 327.A. corporateB. interbankC. mortgageD. syndicate28.A. pay all attentions to a specific area of lendingB. consider someone more important than the otherC. handle loan applications based on hard and fast ruleD. try to build up a well-balanced loan portfolio29.A. prudenceB. profitabilityC. liquidityD. safety30.A. to ensure healthy growth for the bankB. to outperform the competition in financial industryC. to make the profitsD. to achieve specific business targets。
金融英语：FECT-1单选题及答案（4）
金融英语：FECT-1单选题及答案（4）1. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .A. imports automatically increaseB. currency automatically depreciatesC. exports automatically declineD. currency automatically appreciates2. Which of the following statements is not true of accounting? ______.A. Accounting is language of businessB. The user of accounting includes business, government, nonprofit organizations and individuals.C. Accounting is useful for decision makingD. Accounting is an end rather than a means to an end3. The term foreign exchange is best defined by the following statement: it is ______.A. the rate of exchange between two currenciesB. synonymous with currency exchangeC. the place in which foreign currencies is exchangedD. an instrument such as paper currency, note, and check used to make payments between countries4. What is Asset Allocation? ______.A. Buying assets of different types, risks, and potential returnsB. Buying assets with more than one brokerage accountC. The ability to buy mutual fundsD. Buying stocks for the long term5. External users of financial accounting information include all of the following except .A. suppliersB. line managersC. general publicD. creditors6. CAPM is short for .A. Capital Asset Pricing ModelB. Cash Added Price MatrixC. Capital Asset Pricing MatrixD. Cost and Price Model7. Liquidity measures the ______.A. value of an assetB. ease with which an asset can be exchangedC. usefulness of an assetD. economic and monetary reliability of an asset compared with other assets8. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.A. documents... the creditB. merchandise... the contractC. documents... the contractD. merchandise...the buyer ordered9. A barter economy is one that does not possess _______.A. any wealthB. printed currencyC. a medium of exchangeD. gold10. Which of the following is not true of airway bill? ______.A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goodsB. Airway bill is a document of title to the goodsC. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flightD. None of the above1. When a country runs a foreign trade deficit under a flexible foreign exchange rate system，its .A. imports automatically increaseB. currency automatically depreciatesC. exports automatically declineD. currency automatically appreciates2. Which of the following statements is not true of accounting? ______.A. Accounting is language of businessB. The user of accounting includes business, government, nonprofit organizations and individuals.C. Accounting is useful for decision makingD. Accounting is an end rather than a means to an end3. The term foreign exchange is best defined by the following statement: it is ______.A. the rate of exchange between two currenciesB. synonymous with currency exchangeC. the place in which foreign currencies is exchangedD. an instrument such as paper currency, note, and check used to make payments between countries4. What is Asset Allocation? ______.A. Buying assets of different types, risks, and potential returnsB. Buying assets with more than one brokerage accountC. The ability to buy mutual fundsD. Buying stocks for the long term5. External users of financial accounting information includeall of the following except .A. suppliersB. line managersC. general publicD. creditors6. CAPM is short for .A. Capital Asset Pricing ModelB. Cash Added Price MatrixC. Capital Asset Pricing MatrixD. Cost and Price Model7. Liquidity measures the ______.A. value of an assetB. ease with which an asset can be exchangedC. usefulness of an assetD. economic and monetary reliability of an asset compared with other assets8. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.A. documents... the creditB. merchandise... the contractC. documents... the contractD. merchandise...the buyer ordered9. A barter economy is one that does not possess _______.A. any wealthB. printed currencyC. a medium of exchangeD. gold10. Which of the following is not true of airway bill? ______.A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goodsB. Airway bill is a document of title to the goodsC. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flightD. None of the above11. The value of money varies _____.A. directly with the unemployment rateB. directly with the price levelC. inversely with the unemploymentD. inversely with the price level12. The economics news on the television reports that the dollar has strengthened relative to the Japanese yen. This means that ______.A. the dollar has depreciated relative to the yenB. the dollar can now purchase more yenC. the yen can now purchase more dollarsD. the US trade balance with the Japanese economy has improved13. The theory of international exchange that holds that exchange rates are set so that the price of similar goods in different countries is the same is the ______.A. price feedback theoryB. trade feedback theoryC. purchasing power parity theoryD. J-curve theory14. According to the optimal portfolio theory, where should portfolios lie? ______.A. On the efficient frontierB. Above the efficient frontierC. Under the efficient frontierD. Anywhere, as long as the portfolio is diversified15. Which of the following is not a user of management accounting information? ______.A. Store managerB. CreditorC. CEOD. CFO16. Based on the scenarios below, what is the expected return for a portfolio with the following return profile? ______.Market ConditionBear Normal BullProbability 02 0.3 05Rate of return —25% 10% 24%A. 4%B. 10%C. 20%D. 25%Use the following expectations on Stocks X and Y to answer questions 17 through 19 (round to the nearest percent).Bear Market Normal Market Bull MarketProbability 0.2 0.5 0.3Stock X_ -20% 18% 50%Stock Y -15% 20% 10%17. Financial markets serve to channel funds from ______.A. the government to contractorsB. investors to consumersC. consumers to producersD. savers to investors18. The agreements that were reached at the Bretton Woods conference in 1944 established a system .A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed-upon value of its currencyB. of floating exchange rates determined by the supply and demand of one nation's currency relative to the currency of other nationsC. that prohibited governments from intervening in the foreign exchange marketsD. in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading19. Which of the following statements is not consistent with generally accepted accounting principles relating to asset valuation? .A. Assets are originally recorded in accounting records at their cost to the business entityB. Accountants prefer to base the valuation of assets upon objective, verifiable evidence rather than upon appraisals or personal opinionC. Accountants assume that assets such as office supplies, land and buildings will be used in business operations rather than sold at current market pricesD. Subtracting total liabilities from total assets indicates what the owner's equity in the business is worth under current market conditions20. A fiscal expansion in the UK ______ the pound sterling.A. tends to appreciateB. tends to depreciateC. does not affect the price ofD. has no predictable effect on the price of答案：1.B2.D3.D4.A5.B6.A7.B8.A9.C 10.B11.D 12.B 13.C 14.A 15.B 16.B 17.A 18.A 19.D 20.A。
金融英语模拟习题一
金融英语证书考试（FECT）Exercises-1（1）来源：考试大 2010/11/26 【考试大：中国教育考试第一门户】模拟考场视频课程字号:T T金融英语证书考试（FECT）Exercises-1（1）。
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1.Which of the following is not a function of money？______。
A.To act as a medium of exchangeB.To act as a unit of accountC.To act as a store of valueD.To provide a double coincidence of wantsE.To act as a means of payment2.The price in the foreign exchange market is called ______。
A.the trade surplusB.the exchange rateC.the money priceD.the currency rate3.Market risk refers to the risk of______。
A.financial prices fluctuationsB.defaultC.fraudD.deferred payments4.Which of the following is not among the generally accepted accounting principles？______。
A.Cash basisB.PrudenceC.ConsistencyD.Going concernE.Money measurement。
5.What is a documentary letter of credit？______。
金融英语模拟题(一)T1P2-Reading
金融英语模拟题（一）Part two ReadingSection One (10%)Directions: There are ten statements in this section. For each statement there are four choices marked A，B，C，D. You should choose the best answer.31. If the lessor makes an equity investment equal to 20% of the equipment's original cost, and borrows the remaining 80% from a long-term creditor, and writes a noncancelable lease for the equipment, such lease is called a ___________.A. operating leaseB. leveraged leaseC. direct-financing leaseD. sales-type lease32. The interest rate for borrowing funds from inter-bank market is close to, but always slightly ____________ the rate that is available from the central bank.A. lower thanB. higher thanC. as high asD. not as high as33. ___________ is a financial market in which securities that have been previously issued can be resold.A. A primary marketB. A secondary marketC. A issuing marketD. The capital market34. Of the challenging issues in Internet banking, which people care most,is _________.A. the provision of a secure platform for banking transactionsB. whether management has the creativity and vision to harness the technologyC. how to deliver high-quality products for the customers' convenienceD. whether management has the ability to satisfy customers' continually changing financial needs35. From a Chinese Bank's point of view, the currency account which it maintains abroad is known as _______, while a RMB account operated in China for a foreign bank is termed ________.A. a vostro account; a nostro accountB. a mirror account; a nostro accountC. a nostro account; a vostro accountD. a vostro account; a mirror account36. If __________, such a situation is called break-even.A. contribution margin= fixed costsB. contribution margin=total costsC. profit=expenseD. sales revenue=variable cost37. Foreign-funded enterprises may retain their export earnings if those earnings _______.A. get after SAFE approvesB. will be remitted abroadC. will be invested in local areaD. do not exceed the limit set by the SAFE38. BOT is an abbreviated form of _________.A. build-or-technologyB. build-operate-transferC. build-operate-technologyD. benefit-operate-transfer39. _________ is the foundation of private accounting, which analyzes a business's costs to help managers control expenses.A. BudgetingB. Management information systemC. Internet auditingD. Cost accounting40. Underwriting simply means that the investment banker promises to ________ the securities.A. buyB. sellC. designD. issueSection Two (10%)Directions: There are 10 blanks in the following passages. For each blanks there are four choices marked A, B, C, D. You should choose the best answer.Passage OneAnother way of distinguishing markets is on the basis of the _____41_______of the securities in each market. The __42______ is a financial market in which only short-term debt instruments are traded. The ___43_____ isthe market in which longer-term debt and equity instruments are traded. The securities in the former are usually more widely traded than those in the latter and so tend to be ____44______. In addition, short-term securities have _____45______fluctuations in prices than long-term securities, making them safer investments.41.A. volumeB. maturityC. issuing procedureD. kind42.A. money marketB. capital marketC. primary marketD. secondary market43.A. money marketB. capital marketC. primary marketD. secondary market44.A. more solventB. more riskC. more liquidD. safer45.A. volatileB. violentC. widerD. smallerPassage TwoIn documentary credit operations, all parties concerned deal in ___46____ and not in ____47____. The banks check exclusively on the basis of documents ___48____to them to see whether the terms of the credit have been fulfilled. They are ____49_____to verify whether the goods supplied actually agree with those specified in the credit, ____50____differences, say, between the goods invoiced and those actually delivered, nor answerable to the buyers' complaints about these differences. It is up to the buyers and sellers to settle questionables of this nature between themselves.46.A. goodsB. creditsC. documentsD. contracts47.A. goodsB. creditsC. documentsD. contracts48.A. deliveredB. presentedC. deliverD. release49.A. responsibleB. not responsibleC. boundD. willing50.A. nor liable forB. or liable forC. nor liable toD. or liable toSection Three (10%)Directions: Read the following passages, and determine whether the sentences are "Right" or "wrong". If there is not enough information to answer " right" or "wrong''. choose "Doesn't say".Passage OneNew issues of common stock come into two varieties, primary distributions and secondary distributions. Primaries are sales of stock that have never been issued before. There are two types of primary distributions--initial public offering (IPOs) and additional floats of companies' stock that will dilute eachshareholder's existing holding. Of the two, the latter are more common in the new issues market for equities since they involve offerings of shares of larger, more mature companies seeking additional equity capital. Secondary distributions are sales of stock that previously existed in some form or other but are too large to be accommodated on the stock exchanges. Procedures for secondaries often follow those for primaries although the offering period is much shorter and may involve a matter of hours rather than days.The actual marketing for these issues is done by investment bankers directly to the public. On rare occasions, companies have attempted to sell their shares or bonds directly to the public, avoiding investment banking fees. Unless the company is very well known, such attempts are less than successful. The behavior of investment bankers is key to the reception of new issues and directly affects the cost of capital for a company. As a result, the choice of an investment banker is crucial for a company, and the wrong choice could affect its costs over the near term.51. Initial public offerings (IPOs) are one of the type of primary distributions,while additional floats of companies' stock belong to secondary distributions.A.RightB.WrongC.Doesn't say52. Compared with additional floats of companies' stock, initial public offering(IPOs) are more common because they involve offerings of shares larger, more mature companies seeking additional equity capital.A.RightB.WrongC.Doesn't say53.Both primary distributions and secondary distributions are issued in primary markets.A.RightB.WrongC.Doesn't say54. Few companies have attempted to see their shares or bonds directly to the public.A.RightB.WrongC.Doesn't sayPassage TwoThe simplest means of transferring funds abroad is by means of the airmail remittance order. For example, a local customer of the bank wishes to send money to a relative in Japan. The local customer goes to the United States bank and specifies where and to whom the money is to be delivered. He also indicates the amount he wishes to send, for example, USD$100. The bank prepares a letter to its correspondent bank in the town nearest towhere the relative lives. In this letter, the United States bank says, "Advise and pay US dollars 100 to ( name and address ) of recipient." The letter says that this is by order of its local customer, giving his name. Then it adds, " In reimbursement, we credit your account with us." This informs the Japanese bank that its account in the United States bank has been credited USD100 (The United states bank credits the Japanese banks due to account).55. MT is the simplest means of transferring funds abroad.A.RightB.WrongC.Doesn't say56. According to the passage, the local customer of U.S. is a remitter.A.RightB.WrongC.Doesn't say57.The Japanese bank debits the U.S. bank's due from account.A.RightB.WrongC.Doesn't sayPassage ThreeTo finance the national debt, the government issues a variety of debt securities. The most widely held liquid security is the Treasury bill, which is commonly issued by the ministry of finance. However. some Treasury bills, like the Treasury bill of the U. S. government, do not actually pay interest. Instead they are issued at a discount from par (their value at maturity). The investor’s yield comes from the increase in the value of the security between the time it was purchased and the time it matures.Treasury bills are attractive to investors because they are backed by the government and therefore are virtually free of default risk. Because even if the government ran out of money it could simply print more to pay them off when they mature. The risk of unexpected changes in inflation is also low because of the short term to maturity. The markets for Treasury bills in most developed countries are deep and liquid, A deep market is one with many different buyers and sellers. A liquid market is one in which securities can be bought and sold quickly and with low transaction costs. Investors in markets that are deep and liquid have little risk that they will not be able to sell their securities when they want to.58. Treasury bills are short-term and virtually free of default risk.A.RightB.WrongC.Doesn't say59. As some treasury bills do not actually pay interest, they are not attractive to investorsA.RightB.WrongC.Doesn't say60.Investors in deep and liquid markets face immense risk that they will not be able to selltheir securities when they want to.A.RightB.WrongC.Doesn't saySection Four (20%)Directions: There are 4 passages in this sections. Each passage is followed by some questions or unfinished statements. For each of them there are four choices marked A, B, C, D. You should choose the best answer.Passage OneSince equal dollar amounts of debits and credits are entered in the accounts for every transaction recorded, the sum of the debits in the ledger must be equal to the sum of all the credits. If the computation of account balances has been accurate, it follows that the total of the accounts with debit balances must be equal to the total of the accounts with credit balances.Before using the account balances to prepare financial statements, it is desirable to prove that the total of accounts with debit balances is in fact equal to the total of accounts with credit balances. This proof of the equality of debit and credit balances is called a trial balances. A trial balance is a two-column schedule listing the names and balances of all the accounts in the order in which they appear in the ledger. The debit balances are listed in the left-hand column and the credit balances in the right-column. The totals of the two columns should agree.The trial balance provides proof that the ledger is in balance. The agreement of the debit and credit totals of the trial balance gives assurance that:1.Equal debits and credits have been recorded for all transactions.2.The debit or credit balance of each account has been correctly computed.3. The addition of the account balances in the trial balance has been correctly performed.Suppose that the debit and credit totals of the trial balance do not agree. This situation indicates that one or more errors have been made. Typical of such errors are (1) the entering of a debit as a credit or vice verse; (2) arithmetical mistakes in balancing accounts; (3) clerical errors in copying account balances into the trial balance;(4) listing a debit balance in the credit column of the trial balance, or vice verse; and (5) errors in addition of the trial balance.The preparation of a trial balance does not prove that transactions have been correctly analyzed and recorded in the proper accounts. If, for example, a receipt of cash were not be disclosed by the trial balance. In brief, the trial balance proves only one respect of the ledger, and that is the equality of debit and credits.61. A trial balance is a two-column schedule listing the names and balances of all the accounts to prove _______________.A. the agreement of the debit and credit totalsB. the order in which they appear in the ledgerC. the equality of account balances of financial statementsD. the order in which they appear in the recording62. Unless __________, the totals of the debit and credit of trial balance should agree.A. the debit or credit balance of each amount has been correctly computedB. debits and credits have been recorded correctly for all transactionsC. unequal debits and credits have been recorded for all transactionsD. the addition of the account balance in the trial balances has been correctly performed63.If ____________, the debit and credit totals of the trial balance do not agree.A. mistakes appear in computing balancing accountsB. a credit is entered as a debitC. a credit balance is listed in the debit columnD. All of the above64. If a payment of cash is recorded by ________, the trial balance would still balance.A. crediting the Account Payable accountB. debiting the cash accountC. debiting the Account Receivable accountD. debiting the land account65. A trial balance is a working paper which is intended ___________.A. for distribution to various outsidersB. to prepare financial statementsC. for distribution to various accountantsD. to prepare ledger accountsPassage TwoInsurance is almost as important to business as banking. It works quite simply by spreading over a large number of people, the costs or the losses which otherwise would fall on the few who actually suffer them.Fire, for instance, normally damages only a few businesses each year but almost all companies buy insurance to protect themselves against it. What happens is that most companies pay regular small amounts of money, called the premium to insurance groups and so a large fund of money builds up. Then the few who have suffered fires claim the cost of the damages. After investigation, the claims are paid out by the insurance companies.For the operation to work, insurance companies have to calculate what is the chance or probability of certain events happening, and what the cost of making accidents good will be, and how many people will pay, what rates,to have protection. Premiums are fixed in proportion to the risk involved.There are four principles backing up every insurance contract. The first, known as indemnity, is that the insured should get back the same value as was lost. If you insure your watch against the risk of its being stolen, then the insurance company will only pay out the cost of a similar, second. hired watch unless you make a special agreement with them.The second principle is that of agreeing that the insurer has to own, or have the insurable interest in, the property covered, both at the time of affecting the insurance and at the time of loss. This is usual for policies covering fire；but the insurance on ships and their cargoes can be transferred to new owners if required.Thirdly it is necessary for the agreement to be concluded in good faith. Generally the company providing insurance cover charges a premium based on what it is told. If a company fails to mention that a warehouse sometimes contains explosives the underwriter may declare the contract not valid and refuse to pay a claim if the warehouse blows up.Finally, insurers distinguish between remote and immediate causes of an event. If there is an earthquake and a house is damaged, catches fire and is flooded by firemen when putting out the flames, the compensation due will depend on the exact words used in the detailed insurance contract. Usually companies do not provide cover against earthquake damage, so the house owner may not get any compensation for the effects of the fire or water, as these were a direct result ofthe earthquake.66. What are the four principles backing up every insurance contract?A. Indenmity, the insurable interest, premium and good faith.B. Indemnity, the cost of the damage, the exact words in the contract and the insurableinterest.C.Indemnity, the insurable interest, good faith and remote and immediate causes of anevent.D. Indemnity, the insurable interest, the cost of the damages and good faith.67. I n Para. 2, the term "premium" means ___________A. the cost of the damageB. a sum of money paid regularly to an insurance companyC. proportion of the risk involvedD. a large fund of money68. Which of the following is NOT true according to the passage?A. Premiums are usually decided in proportion to the risk involved.B. Insurance companies often do not provide cover against earthquake damages.C. Insurance on ships and their cargoes can be transferred to new owners if required.D. Those who buy insurance can claim the cost of damages if they suffer from firescaused by an earthquake.69. Which of the following is implied, but not directly stated in the passage?A. A regular small sum of money will cover your losses.B. Insurance companies usually do not provide cover against earthquake losses.C. An insurance company can build up a large sum of money from those who pay insurance charge.D. You cannot cover the losses you suffer if the results of the investigation by insurance company turn outnot to be in your favor.70. The purpose of this passage is ___________ .A. to get you familiar with insurance businessB. to advise you to insure your propertiesC. to tell you how to get compensation from an insurance companyD. to teach you how to sign an insurance contractPassage ThreeOnce the exporter has been advised that a letter of credit has been issued in its favor, many exporters make the mistake of starting to prepare or fulfill the requirements of the foreign customer's purchase order before actually receiving the actual letter of credit from the opening or issuing bank. Unless the exporter has had good or excellent prior experience with the foreign customer and its issuing bank, the exporter runs the risk of having the goods ready for shipment, without receiving the original letter of credit. The exporter runs a risk because it may or may not be able to comply with certain terms and conditions contained in the actual original letter of credit. It is always conceivable new conditions might be added to the credit instrument. Or the goods might be shipped and arrived at the overseas port of destination without any original documents because the original L/C arrives late. Thus, the foreign customer will be unable to clear goods through customs, and the goods will be stored in a customs warehouse to accrue expensive demurrage charges.The answer to the above mentioned problem is to have the opening bank issue the letter of credit via tested telex or SWIFT to the advising or negotiating bank as the "original operative instrument" which can be presented for payment by the beneficiary. The exporter must make sure the negotiating or confirming bank, usually the advising bank, is willing to accept the aforementioned as the original operative instrument. Sometimes advising, negotiating, and even confirming banks who pay on behalf of issuing banks still want to wait for the original written letter of credit to be received by them via mail. This might indicate a financial problem with the issuing bank or some sort of technical problems between the banks which the exporter should investigate immediately. The solution helps reduce or eliminate any delays in credit timely for payment after shipment of the goods. Remember in many cases banks want the original on-board ocean bill of lading presented to them with the original letter of credit.71. The exporter should start to prepare or fulfill the requirements of the foreign customer's purchase order _______________.A. before the exporter has been advised that a letter of credit has been issued in its favorB. after the exporter has been advised that a letter of credit has been issued in its favorC. before the exporter actually receives the letter of credit from the opening or issuing bankD. after the exporter actually receives the letter of credit from the opening or issuing bank72. If the exporter starts to prepare or fulfill the requirements of the foreign customer's purchase order when he has been advised that a letter of credit has been issued, he may run the risk of ________.A. having the goods ready to board a steamship which may not comply with certain terms and conditionsstipulated in the letter of creditB. having the goods shipped to the destination and cleared through customsC. having the goods stored in the custom's warehouse without any chargesD. None of the above73. According to the passage, the importer can clear goods through customs on presentation of ____________.A. the original letter of creditB. the original documentsC. the credit instrumentD. expensive demurrage charges74. The bank that issues a letter of credit is called ____________.A. an issuing bankB. a confirming bankC. a negotiating bankD. an advising bank75. Which of the following is NOT true?A. The negotiating bank always agrees to accept the tested telex letter of credit as the original operative instrument.B. The advising bank sometimes agrees to pay on behalf of the issuing bank.C. The confirming bank sometimes still wants to wait for the original letter of credit.D.The exporter sometimes pays no attention to the financial problem with the issuing bank.Passage FourCost- V olume-Profit (C-V-P) analysis is the technique for determining how changes in cost and volume affect the profitability of an organization. Here we will discuss how the analysis of cost behavior patterns allows management to understand the effects that changes in cost, volume, and revenue will have on profit. The techniques for studying these relationships are collectively referred to as cost-volume-profit (C-V-P) analysis. They can be used in making decisions about selling prices, production volume, levels of discretionary fixed costs, and so on.There are three common and related ways to perform C-V-P analysis: (1) The contribution margin approach;(2) The equation approach; and (3) the graphical approach. Although all the three common methods of C-V-P analysis are variations of the same calculations, each approach has its advantages. The graphical approach allows the simultaneous analysis of several different activity levels.Among others things, C-V-P analysis is used to compute break-even points and target net income levels. The equation approach is especially useful in assessing how profit change when costs or revenues change.Three limiting assumptions are (1) that the sales mix is constant, (2) that cost and revenue behavior patterns are linear and remain constant over the relevant range, and (3)that all costs can be categorized as either fixed or variable. When sales volumes are relatively stable management should always emphasize the products with the highest contribution-margin ratios.76. According to the passage, which of the following statements is not mentioned?A. There are three common and related ways to perform C-V-P analysis.B. There are three limiting assumption in C-V-P analysis.C. There are three advantages of C-V-P analysis.D. There are three main factors in C-V-P analysis.77. C-V-P analysis can be used for determining the following item except __________.A. the discretionary fixed costsB. the production volumeC. the capital amountD. the selling price78. ______ is (are) especially useful in simultaneous analysis of several different activity levels.A. The graphical approachB. The contribution margin approachC. The equation approachD. All of above79. Which of the following statements is false?A. C-V-P analysis can be used to computer break-even points and target net income levels.B. One of the three limiting assumptions is that cost and revenue behavior patterns are linear and remain constant over the relevant range.C. The other limiting assumptions are that the sales mix is constant and all costs can be categorized as either fixed or variable.D. The contribution margin approach is especially useful in assessing how profits change when costs or revenue change.80. Which is not the three limiting assumptions in C-V-P analysis?A. The sales mix is constant cost.B. Revenue behavior patterns are linear and remain constant over the relevant range.C. All costs can be categorized as either fixed or variable.D. The sales volumes are relatively stable.。
金融专业英语证书考试FECT单选练习100题-2
⾦融专业英语证书考试FECT单选练习100题-2⾦融专业英语证书考试FECT单选练习100题-21. Usually the low interest rate currency trades at a ______ to the high interest rate currency in the forward market.A. premiumB. parC. discountD. bar2. Which of the following statements about standby letters of credit is true ______.A. They can serve as a guarantee to a buyer against a seller defaultingB. They are contrary to the general rule that letters of credit may only be used for the actual movement of goodsC. They are unlike a tender (or other) bond in their legal standing and method of operationD. They are unlike a tender bond with its fixed expiry date3. The most liquid of all assets is ______.A. the stock of commercial banksB. M 1C. intelligenceD. the debt of major corporations4. Beta and standard deviation differ as risk measures in that beta measures ______.A. only unsystematic risk, while standard deviation measures total riskB. only systematic risk, while standard deviation measures total riskC. both systematic and unsystematic risk, while standard deviation measures only unsystematic riskD. both systematic and unsystematic risk, while standard deviation measures only systematic risk5. What information would you find in a statement of cash flows that you would not be able to get from the other two primary financial statements ______.A. Cash provided by or used in financing activitiesB. Cash balance at the end of the periodD. Net income6. An analyst estimates that a stock has the following probabilities of return depending on the state of the economy:The expected return of the stock is ______.A.7.8% C. %D. %B. %7. According to the rules of debit and credit for balance sheet accounts ______.A. increases in asset, liability, and owner's equity accounts are recorded by debitsB. decreases in asset and liability accounts are recorded by creditsC. increases in asset and owner's equity accounts are recorded by debitsD. decreases in liability and owner's equity accounts are recorded by debits 2658. Individuals will accept the medium of exchange in return for goods and services only if they are confident that ______.A. the inflation rate is zeroB. it possesses intrinsic valueC. they can pass it on to othersD. they can exchange it for gold9. When a country's currency appreciates, the country's goods abroad become ______ and foreign goods in that country become ______.A. cheaper... more expensiveB. more expensive... cheaperC. cheaper...cheaperD. more expensive... more expensiveaperformance bond. What is the most likely course of action ______.A. It asks its bank to issue a tender bond which can be converted into a performance bondB. It gives up its bidC. It consults its bank about issuing a standby letter of creditD. It asks its bank to issue a performance bond11. ABC Co. Ltd. has a $3 500 account receivable from XYZ Store. On March 20, XYZ makes a partial payment of $2 100 to ABC. The journal entry made on Mdrch 20 by ABC to record this transaction includes ______.A. a debit to the cash received account of $2 100B. a credit to the Accounts Receivable account of $2 100C. a debit to the Cash account of $1 400D. a debit to the Accounts Receivable account of $1 40012. Intervention in the foreign exchange market means the government ______.A. restricts individuals from buying and selling foreign exchangeB. restricts the importation of certain goodsC. or central bank buys or sells foreign exchangeD. devalues the currency in the foreign-exchange market13. Which of the following is not a form of countertrade ______.A. CounterpurchaseB. Buy-backC. OffsetD. Balance trade14. A credit to a revenue account ______.A. decreases revenuesB. increases equityC. decreases equityD. increases assets15. If the government guaranteed that anyone wishing a job would be provided one, the likely result would be ______.B. an increase in the money supplyC. an increase in inflationary expectationsD. the development of a barter system16. Given $100 000 to invest, what is the expected risk premium in dollars of investing in equities versus risk-free T-bills. Treasury bills) based on theA. $20000B. $18000C. $15000D. $1300017. Economists assume that most people take risks ______.A. because doing so is excitingB. only when they have no riskless alternativeC. very infrequentlyD. if they are compensated for taking the risks18. The Phillips Curve shows the relationship between ______.A. aggregate demand and aggregate supplyB. interest rates and inflationC. recessions and boomsD. inflation and the unemployment rate19. In a fixed exchange rate system, speculative selling of a currency is based on anticipation of .A. appreciationB. devaluationC. a foreign trade surplusD. interest rate increaseA. the principalB. the remitting bankC. the drawerD. the drawee, who is its customer21. The following statements describing net income are all correct except that ______.A. net income is computed in the income statement, appears in the statement of owner's equity, and increases owner's equity in the balance sheetB. net income is equal to revenues minus expensesC. net income is computed in the income statement, appears in the statement of owner's equity, and increases the amount of cash shown in the balance sheetD. net income can be determined using the account balances appearing in an adjusted trial balance22. A strong dollar encourages ______.A. travel to the United States by foreignersB. purchase of American goods by foreignersC. Americans to travel abroadD. Americans to save dollars23. In what circumstances would the beneficiary of a confirmed documentary credit not receive payment ______.A. Failure of the applicantB. Failure of the issuing bankC. Failure to fulfil the credit termsD. Failure to fulfil the commercial contract24. The balance in the owner's capital account of ABC Co. Ltd. at the beginning of the year was $65 000. During the year, the company earned revenue of $430 000 and incurred expenses of $360 000, the owner withdrew $50 000 in assets, and the balance of the Cash account increased by $10 000. At year-end, the company's net income and the year-end balance in the owner's capital account were, respectively .A. $20 000 and $95 000B. $70 000 and $95 000C. $70 000 and $85 00025. Assume the inflation rate is expected to be 5 percent and the unemployment rate is 8 percent. If workers wish to get a 2 percent real wage increase, they should bargain for a money wage increase of______.A. 3 percentB. 5 percentC. 7 percentD. 13 percent26. Which statement about portfolio diversification is correct .A. Proper diversification can reduce or eliminate systematic riskB. As more securities are added to a portfolio, total risk typically would be expected to fall at a decreasing rateC. The risk-reducing benefits of diversification do not occur meaningfully until at least 30 individual securities are included in the portfolioD. Diversification reduces the portfolio's expected return because it reduces a portfolio's total risk27. Your customer is the applicant for a documentary credit. Which of the following points would appear to be illogical if they appeared on the application form ______.A. Invoice price shown as FOB, bills of lading to be marked freight paidB. Last date for shipment one week before expiry dateC. Invoice price shown as C&F, but no insurance document requestedD. No mention of the latest date of shipment28. Portfolio theory as described by Markowitz is most concerned with ______.A. the effect of diversification on portfolio riskB. B. the elimination of systematic riskC. active portfolio management to enhance returnD. the identification of unsystematic risk29. Commercial bank deposits with the central bank are part of the bank's______.A. net worthB. demand depositsC. loan portfolio30. Foreign trade can be conducted on the following terms except for ______.A. open accountB. documentary collectionC. documentary creditsD. public bonds31。
金融英语(FECT)考试模拟练习题大汇总
1. Which of the following is not a function of money? ______.A. To act as a medium of exchangeB. To act as a unit of accountC. To act as a store of valueD. To provide a double coincidence of wantsE. To act as a means of payment2. The price in the foreign exchange market is called ______.A. the trade surplusB. the exchange rateC. the money priceD. the currency rate3. Market risk refers to the risk of______.A. financial prices fluctuationsB. defaultD. deferred payments4. Which of the following is not among the generally accepted accounting principles? ______.A. Cash basisB. PrudenceC. ConsistencyD. Going concernE. Money measurement.5. What is a documentary letter of credit? ______.A. A conditional bank undertaking to pay an exporter on production of stipulated documentationB. A method of lending against documentary securityC. An international trade settlement system biased in favour of importersD. All of the above6. Holding a group of assets reduces risk as long as the assets ______.A. are perfectly correlatedB. are completely independentC. do not have precisely the same pattern of returnsD. have a correlation coefficient greater than one7. An amount, payable in money goods, or service, owed by a business to a creditor, is known as a/an .A. liabilityB. debtC. equityD. asset8. What function is money serving when you buy a ticket to a movie? ______.A. store of valueB. a medium of exchangeC. transaction demandD. a unit of account9. If foreigners expect that the future price of sterling will be lower, the ______.A. supply of sterling will increase, demand for sterling will fall, and theexchange rate will fallB. supply of sterling will increase, demand for sterling will rise, and theexchange rate may or may not increaseC. supply of sterling will fall, demand for sterling will increase, and the exchange rate will riseD. supply of sterling will fall, demand for sterling will fall, and the exchange rate may or may not fall10. The documentary collection provides the seller with a greater degree of protection than shipping on ______.A. open accountB. bank's letter of guaranteeC. banker's draftD. documentary credit11. Which of the following statements is not true of central banks? ______.A. They pay the government's salariesB. They always undertake the regulation of the banking systemC. They are always the lender of last resortD. None of the above12. When GBP/USD rate goes from 1.6150 to 1.8500, we say the dollar ______.A. appreciates by 12.70%B. depreciates by 14.55%C. depreciates by 12.70%D. appreciates by 14.55%13. According to diversification principle in investment, suppose you invest Stock X and Stock Y with equal funds, which of the following is not true? ______.A. If X and Y are totally independent with each other, the risk of the portfolio is reducedB. If X and Y are perfectly negatively correlated, the risk of the portfolio is perfectly offsetC. If X and Y are perfectly positively correlated, the risk of the portfolio is neither reduced nor increasedD. If X and Y are perfectly negatively correlated, the risk of the portfolio is neither reduced nor increased14. These are four main methods of securing payment in international trade:(1) payment under documentary credit(2) open account(3) collection, that is document against payment or acceptance of a bill of exchange(4) payment in advanceFrom an exporter's point of view, the order of preference is ______.A. (4) , (2) , (3) , (1)B. (4) , (1) , (3) , (2)C. (4) , (3) , (1) , (2)D. (2) , (4) , (1) , (3)15. The main liability on a bank balance sheet is ______.A. depositsB. capital and reservesC. loans and overdraftsD. cash16. ______ shows that net income for a specified period of time and how it was calculated.A. The income statementB. The capital statementC. The accounting statementD. The statement of financial condition17. Why must the liabilities and assets of a bank be actively managed? ______.A. Because assets and liabilities are not evenly matched on the same time scaleB. Because assets and liabilities are evenly matchedC. Because the interbank market uses LIBORD. Because assets and liabilities can be underwritten18. If the expected returns of two risky assets have a perfect negative correlation, then risk .A. is increasedB. falls to zeroC. is unaffectedD. is reduced by one-half19. A possible disadvantage of freely fluctuating exchange rates with no official intervention is that .A. some nations would experience continual deficitsB. the exchange rates may experience wide and frequent fluctuationsC. nations would no longer be able to undertake domestic policies designed to achieve and maintain full employmentD. nations would need a larger supply of international reserves than otherwise20. What are your GBP/USD position and the average rate if you sell ￡4m at 1.6350 buy ￡5m at 1.6340 and sell $5m at 1.6348?A. Short ￡2 058 478.10 long $3 370 000 at 1.6371B. Long ￡5 941 521.90 short $9710 000 at 1.6342C. Short ￡5 941 521.90 long $9 710 000 at 1.6342D. Long ￡4 058 478.10 short $6 630 000 at 1.633621. A correlation coefficient of +1.0 means two stocks are ______.A. perfectly negatively correlatedB. opposite the market betaC. equal to the market betaD. perfectly positively correlated22. The percentage analysis of increases and decreases in corresponding items in comparative financial statements is called ______.A. external analysisB. horizontal analysisC. vertical analysisD. comparative analysis23. What is the name of the document which can make a buyer feel confident that goods are of a certain standard? ______.A. Inspection certificateB. Commercial invoiceC. Insurance policyD. Certificate of origin24. Sometimes financial intermediaries by "borrowing short and lending long" find themselves in difficult financial situations because .A. short-term rates are fallingB. long-term rates are risingC. deposits increase too rapidlyD. short-term rates rise relative to rates of their holdingsE. long-term rates rise more sharply than short-term rates25. Incoterms were written ______.A. by the International Chamber of CommerceB. under the United Nations Convention for the International Sale of Goods (Vienna Convention )C. under the Kyoto Protocols as adopted in 2000D. under "fast track" authority granted by the U.S. Congress26. The purpose of keeping account is to .A. determine whether the business has made a profit or a lossB. find out why the business has lost moneyC. see how much has been spentD. find out why the business cannot fulfil its commitments27. If reserves are 20 percent, then the multiplier effect will be ______ times, so the original deposit of RMB40 000 can create up to ______ of new deposits.A. 5……RMB200000B. 4……RMB120000C. 3……RMB80000D. 6……RMB2000028. ABC Company is the beneficiary of a confirmed irrevocable letter of credit. ______ bank ( s ) will assure the company that it will be paid.A. OneB. NoneC. ThreeD. Two29. Legal tender includes .A. notes and coinsB. notes onlyC. coins onlyD. notes, coins and checks30. The following are the basic functions of a bill of lading except to act as ______.A. a receipt for the goods from the shipping company to the exporterB. a document of title for goods being shipped overseasC. a certificate of origin, which certifies that the goods were produced in a particular countryD. evidence of the carriage contract between the exporter and the carrier31. Persistent foreign trade deficits under a flexible exchange rate system usually lead to ______.A. inflation in the domestic economyB. speculation of future devaluationC. falling interest ratesD. rising imports32. The additional amount paid in buying or selling a currency at a given future date is called .A. premiumB. commissionC.tariffD. dividend33. Banks manage their assets considering ______.A. riskB. some optimum combination of the aboveC. earningsD. liquidity34. What is the function of the book-keeping system in bank accounting? ______.A. To prove that all the day's transactions have gone through for the right amountB. To prove that all the day's transactions have all been posted to the right accountC. To prove that the fresh balance of those accounts is correct after recording the transactionsD. All of the above35. The risk that is specific to individual stocks is called ______.A. systematic riskB. country riskC. unsystematic riskD. market risk36. The main objective of the Exchange Equalization Account is to ______.A. prevent undue fluctuation in the exchange value of one country's own currency against other currenciesB. control the rate of inflationC. ensure that notes and coins continue to be acceptable as a medium of exchangeD. permit the exchange of payments between banks37. How can you prove that no transactions are missing or wrong at the end of the day? ______.A. There is no other way than have these transactions reposted to the proper entriesB. We can examine all the transactions carefully and find the wrong recordsC. We can balance the total debits and the total credits by calculating them againD. We can do that by checking the total debits and the total credits to see whether they are in state of balance38. Money _____.A. serves as the critical function of a medium of exchangeB. facilitates trade in goods and servicesC. overcomes the inefficiencies of barterD. all of the above39. If dealers buy currency forward but do not sell forward at the same time, their position is known as .A. shortB. forerunnerC. speculationD. long40. Incoterms apply ______.A. only if clearly incorporated into the contract of saleB. to International shipments beyond a certain tonnageC. to international shipments under the Uniform Commercial CodeD. to all international shipments of goods41. Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract? ______.A. Import of goods priced in a foreign currencyB. Import of goods priced in RMBC. Export of goods priced in RMBD. Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract42. Incoterms address ______.A. the risks of loss between the partiesB. breaches of contractC. ownership rightsD. type of ship used43. Which of the following is or was an example of representative full-bodied money? ______.A. Debt moneyB. ATS accountC. Gold certificateD. Demand deposit44. Risks associated with investing in foreign countries are the following except ______.A. voting riskB. exchange rate riskC. country riskD. political risk45. An exporter sells goods to a customer abroad on FOB and on CIF term. Who is responsible for the freight charges in each? ______.A. Exporter; ExporterB. Exporter; ImporterC. Importer; ImporterD. Importer; Exporter46. Default risk refers to the possibility that a borrower may ______.A. be unable to repay the principal on his loanB. be unable to make the interest payments on his loanC. go bankruptD. all of the above47. What is the reserve requirement? ______.A. The requirement of a bank to deposit a percentage of moneyB. The requirement for deposits in cashC. The percentage of a bank's deposits in the form of cash reservesD. The requirement for cash reserves48. A draft is like a check that can be endorsed but it isn't a title to goods, like ______.A. a bill of ladingB. an inspection certificateC. a certificate of originD. an insurance certificate49. Arbitrage ______.A. is a general economic term for buying something where it is cheap and selling it where it is dearB. keeps exchange rates consistent across marketsC. has been outlawed by the International Monetary FundD. cannot occur where there is a forward exchange marketE. both A and B50. What is the purpose of comparing the ledger entries with the documents? ______.A. To prove that all the transactions have made for the right amountsB. To prove that all the accounts have been posted correctlyC. To check the number of all the debits and creditsD. To post the right accounts51. What is Dollar Cost Averaging? ______.A. A brokerage account that gives investors cheap tradesB. The idea that prices tend to rise over the long termC. Buying stocks that are below average in valueD. A flat quarterly mutual fund fee averaged throughout the yearE. A strategy of investing money on a regular basis to take advantage of market fluctuations52. From a Chinese bank's point of view, the currency account which it maintains abroad is known as______, while a RMB account operated in China for a foreign bank is termed ______.A. a vostro account…… a nostro accountB. a vostro account…a mirror accountC. a mirror account…a nostro accountD. a nostro account…… a vostro account53. Under FOB terms the bill of lading would state goods ______.A. loaded on board, freight payable at destinationB. loaded on board, freight paidC. received for shipment, freight paidD. received for shipment, freight payable at destination54. The liabilities of the bank as shown in its balance sheet represent the ______ which it uses in its business.A. sources of the fundsB. share capitalC. investmentsD. advances to customers55. International payments and other messages are often sent through an international computer network called ______.A. CHAPSB. BACSC. SWIFTD. EIMT56. Low levels of uncertainty (risk) are associated with .A. stocksB. stock optionsC. higher potential returnsD. lower potential returns57. Government securities would appear on a commercial bank's balance sheet as ______.A. an assetB. reservesC. part of net worthD. a liability58. A major problem with a fixed exchange rate system is that when countries run foreign trade deficits, ______.A. there is no self-correcting mechanismB. currency values become unstableC. the value of the reserve currency declinesD. world inflation increases59. In a particular economy banks are required to keep 25 percent of all deposits in the form of reserves; this gives a credit-creation multiplier of ______.A. fourB. threeC. twoD. five60. Regulation of the money supply and financial markets is referred to as ______.A. fiscal policyB. income policyC. monetary policyD. budgetary policy61. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .A. imports automatically increaseB. currency automatically depreciatesC. exports automatically declineD. currency automatically appreciates62. Which of the following statements is not true of accounting?______.A. Accounting is language of businessB. The user of accounting includes business, government, nonprofit organizations and individuals.C. Accounting is useful for decision makingD. Accounting is an end rather than a means to an end63. The term foreign exchange is best defined by the following statement: it is ______.A. the rate of exchange between two currenciesB. synonymous with currency exchangeC. the place in which foreign currencies are exchangedD. an instrument such as paper currency, note, and check used to make payments between countries64. What is Asset Allocation? ______.A. Buying assets of different types, risks, and potential returnsB. Buying assets with more than one brokerage accountC. The ability to buy mutual fundsD. Buying stocks for the long term65. External users of financial accounting information include all of the following except .A. suppliersB. line managersC. general publicD. creditors66. CAPM is short for .A. Capital Asset Pricing ModelB. Cash Added Price MatrixC. Capital Asset Pricing MatrixD. Cost and Price Model67. Liquidity measures the ______.A. value of an assetB. ease with which an asset can be exchangedC. usefulness of an assetD. economic and monetary reliability of an asset compared with other assets68. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.A. documents…… the creditB. merchandise…… the contractC. documents…… the contractD. merchandise……the buyer ordered69. A barter economy is one that does not possess _______.A. any wealthB. printed currencyC. a medium of exchangeD. gold70. Which of the following is not true of airway bill? ______.A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goodsB. Airway bill is a document of title to the goodsC. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flightD. None of the above71. The value of money varies _____.A. directly with the unemployment rateB. directly with the price levelC. inversely with the unemploymentD. inversely with the price level72. The economics news on the television reports that the dollar has strengthened relative to the Japanese yen. This means that ______.A. the dollar has depreciated relative to the yenB. the dollar can now purchase more yenC. the yen can now purchase more dollarsD. the US trade balance with the Japanese economy has improved73. The theory of international exchange that holds that exchange rates are set so that the price of similar goods in different countries is the same is the ______.A. price feedback theoryB. trade feedback theoryC. purchasing power parity theoryD. J-curve theory74. According to the optimal portfolio theory, where should portfolios lie? ______.A. On the efficient frontierB. Above the efficient frontierC. Under the efficient frontierD. Anywhere, as long as the portfolio is diversified75. Which of the following is not a user of management accounting information? ______.A. Store managerB. CreditorC. CEOD. CFO76. Based on the scenarios below, what is the expected return for a portfolio with the following return profile? ______.Market ConditionA. 4%B. 10%C. 20%D. 25%Use the following expectations on Stocks X and Y to answer questions77. Financial markets serve to channel funds from ______.A. the government to contractorsB. investors to consumersC. consumers to producersD. savers to investors78. The agreements that were reached at the Bretton Woods conference in 1944 established a system .A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed-upon value of its currencyB. of floating exchange rates determined by the supply and demand of one nation's currency relative to the currency of other nationsC. that prohibited governments from intervening in the foreign exchange marketsD. in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading79. Which of the following statements is not consistent with generally accepted accounting principles relating to asset valuation? .A. Assets are originally recorded in accounting records at their cost to the business entityB. Accountants prefer to base the valuation of assets upon objective, verifiable evidence rather than upon appraisals or personal opinionC. Accountants assume that assets such as office supplies, land and buildings will be used in business operations rather than sold at current market pricesD. Subtracting total liabilities from total assets indicates what the owner's equity in the business is worth under current market conditions80. A fiscal expansion in the UK ______ the pound sterling.A. tends to appreciateB. tends to depreciateC. does not affect the price ofD. has no predictable effect on the price of81. What are the expected returns for Stocks X and Y respectively? ______.A. 20% and 10%B. 18% and 12%C. 20% and 11%D. 18% and 5%82. Which of the following payment terms eliminates the exchange risk, assuming the exporter invoices in foreign currency? ______.A. Confirmed irrevocable documentary creditB. Open accountC. Documentary collection D/AD. None of the above83. ABC Co. Ltd. purchased a car for $ 12 000, making a down payment of $5 000 cash and signing a $7 000 note payable due in 60 days. Which of the following is not correct? ______.A. From the viewpoint of a short-term creditor, this transaction makes the business less solventB. Total liabilities increased by $7 000C. Total assets increased by $12 000D. This transaction had no immediate effect on the owner's equity in the business84. Which of the following terms of payment will entirely eliminate country risk? ______.A. Revocable documentary creditsB. Confirmed Irrevocable documentary creditsC. Documentary collection D/PD. Documentary collection D/A85. The expiry date of a documentary credit is Sunday, 24 February, and documents have to be A presented to you. Which of the following is an acceptable presentation? (Assume there is no latest stated date for shipment stipulated.) ______.A. Presentation to you on Monday 25 February with the bill of lading dated 25 FebruaryB. Presentation on Monday 25 February with the bill of lading dated Sunday 24 FebruaryC. Presentation on Tuesday 26 February with the bill of lading dated Sunday 24 FebruaryD. Presentation on Friday 22 February with the bill of lading dated Sunday 29 January86. What are the standard deviations of returns on Stocks X and Y respectively? ______.A. 15% and 26%B. 24% and 13%C. 20% and 4%D. 28% and 8%87. Who makes the first presentation of documents under a transferable credit? ______.A. ApplicantB. First beneficiaryC. Second beneficiaryD. None of the above88. A transaction caused a $10 000 decrease in both total assets and total liabilities. This transaction could have been ______.A. repayment of a $ 10 000 bank loanB. an asset with a cost of $10000 was destroyed by fireC. purchase of a delivery truck for $10 000 cashD. collection of a $10 000 account receivable89. Money ceases to serve as an effective store of value when ______.A. the government runs large deficitsB. the unemployment rate is very highC. productivity in the economy declinesD. rapid inflation occurs90. An indication that the money supply is greater than the desirable amount would be .A. insufficient spending and excessive savingB. deflationC. inadequate spending and rising unemploymentD. rising wages and prices81. What are the expected returns for Stocks X and Y respectively? ______.A. 20% and 10%B. 18% and 12%C. 20% and 11%D. 18% and 5%82. Which of the following payment terms eliminates the exchange risk, assuming the exporter invoices in foreign currency? ______.A. Confirmed irrevocable documentary creditB. Open accountC. Documentary collection D/AD. None of the above83. ABC Co. Ltd. purchased a car for $ 12 000, making a down payment of $5 000 cash and signing a $7 000 note payable due in 60 days. Which of the following is not correct? ______.A. From the viewpoint of a short-term creditor, this transaction makes the business less solventB. Total liabilities increased by $7 000C. Total assets increased by $12 000D. This transaction had no immediate effect on the owner's equity in the business84. Which of the following terms of payment will entirely eliminate country risk? ______.A. Revocable documentary creditsB. Confirmed Irrevocable documentary creditsC. Documentary collection D/PD. Documentary collection D/A85. The expiry date of a documentary credit is Sunday, 24 February, and documents have to be A presented to you. Which of the following is an acceptable presentation? (Assume there is no latest stated date for shipment stipulated.) ______.A. Presentation to you on Monday 25 February with the bill of lading dated 25 FebruaryB. Presentation on Monday 25 February with the bill of lading dated Sunday 24 FebruaryC. Presentation on Tuesday 26 February with the bill of lading dated Sunday 24 FebruaryD. Presentation on Friday 22 February with the bill of lading dated Sunday 29 January86. What are the standard deviations of returns on Stocks X and Y respectively? ______.A. 15% and 26%B. 24% and 13%C. 20% and 4%D. 28% and 8%87. Who makes the first presentation of documents under a transferable credit? ______.A. ApplicantB. First beneficiaryC. Second beneficiaryD. None of the above88. A transaction caused a $10 000 decrease in both total assets and total liabilities. This transaction could have been ______.A. repayment of a $ 10 000 bank loanB. an asset with a cost of $10000 was destroyed by fireC. purchase of a delivery truck for $10 000 cashD. collection of a $10 000 account receivable89. Money ceases to serve as an effective store of value when ______.A. the government runs large deficitsB. the unemployment rate is very highC. productivity in the economy declinesD. rapid inflation occurs90. An indication that the money supply is greater than the desirable amount would be .A. insufficient spending and excessive savingB. deflationC. inadequate spending and rising unemploymentD. rising wages and prices91. If a nation's interest rates are relatively low compared to those of other countries, then the exchange value of its currency will tend to ______ under a system of exchange rates.A. appreciate…… floatingB. depreciate……floatingC. appreciate…… fixedD. depreciate…… fixed92. Which of the following is true of a company's balance sheet? ______.A. It displays sources and uses of cash for the periodB. It is unnecessary if both an income statement and a statement of cash flows are availableC. It is a separate representation of the company's revenue and expense transactions for the yearD. It is an expansion of the basic accounting equation ofAssets=Liabilities+Owner's Equity93. When Americans or foreigners expect the return on dollar deposits to be high relative to the return on foreign deposits, there is a ______ demand for dollar deposits and a correspondingly ______ demand for foreign deposits.A. higher…… higherB. lower…… higherC. higher…… lowerD. lower……lower94. Velocity is the ______.A. inverse of GNPB. speed at which checking accounts are converted into cashC. relationship between the price level and the money supplyD. rate at which money turns over95. Assume that of your $10 000 portfolio, you invest $9 000 in Stock X and $1 000 in Stock Y. What is the expected return on your portfolio? ______.A. 18%B. 20%C. 19%D. 3%96. Which of the following would you expect to find in a correctly prepared income statement? .A. Cash balance at the end of the periodB. Expenses incurred during the period to earn revenuesC. Contributions by the owner during the periodD. The reported company's financial position at a specific date。
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2011年金融英语（FECT）证书考试模拟题1（英语学习）金融英语证书考试Exercises-11.Which of the following is not a function of money？______。
A.To act as a medium of exchangeB.To act as a unit of accountC.To act as a store of valueD.To provide a double coincidence of wantsE.To act as a means of payment2.The price in the foreign exchange market is called ______。
A.the trade surplusB.the exchange rateC.the money priceD.the currency rate3.Market risk refers to the risk of______。
A.financial prices fluctuationsB.defaultC.fraudD.deferred payments4.Which of the following is not among the generally accepted accounting principles？______。
A.Cash basisB.PrudenceC.ConsistencyD.Going concernE.Money measurement。
5.What is a documentary letter of credit？______。
A.A conditional bank undertaking to pay an exporter on production of stipulated documentationB.A method of lending against documentary securityC.An international trade settlement system biased in favour of importersD.All of the above6.Holding a group of assets reduces risk as long as the assets ______。
A.are perfectly correlatedB.are completely independentC.do not have precisely the same pattern of returnsD.have a correlation coefficient greater than one7.An amount，payable in money goods，or service，owed by a business to a creditor，is known as a/an 。
A.liabilityB.debtC.equityD.asset8.What function is money serving when you buy a ticket to a movie？______。
A.store of valueB.a medium of exchangeC.transaction demandD.a unit of account9.If foreigners expect that the future price of sterling will be lower，the ______。
A.supply of sterling will increase，demand for sterling will fall，and theexchange rate will fallB.supply of sterling will increase，demand for sterling will rise，and theexchange rate may or may not increaseC.supply of sterling will fall，demand for sterling will increase，and the exchange rate will riseD.supply of sterling will fall，demand for sterling will fall，and the exchange rate may or may not fall10.The documentary collection provides the seller with a greater degree of protection than shipping on ______。
A.open accountB.bank‘s letter of guaranteeC.banker’s draftD.documentary credit11.Which of the following statements is not true of central banks？______。
A.They pay the government‘s salariesB.They always undertake the regulation of the banking systemC.They are always the lender of last resortD.None of the above12.When GBP/USD rate goes from 1.6150 to 1.8500，we say the dollar ______。
A.appreciates by 12.70%B.depreciates by 14.55%C.depreciates by 12.70%D.appreciates by 14.55%13.According to diversification principle in investment，suppose you invest Stock X and Stock Y with equal funds，which of the following is not true？______。
A.If X and Y are totally independent with each other，the risk of the portfolio is reducedB.If X and Y are perfectly negatively correlated，the risk of the portfolio is perfectly offsetC.If X and Y are perfectly positively correlated，the risk of the portfolio is neither reduced nor increasedD.If X and Y are perfectly negatively correlated，the risk of the portfolio is neither reduced nor increased14.These are four main methods of securing payment in international trade：（1）payment under documentary credit（2）open account（3）collection，that is document against payment or acceptance of a bill of exchange（4）payment in advanceFrom an exporter’s point of view，the order of preference is ______。
A.（4），（2），（3），（1）B.（4），（1），（3），（2）C.（4），（3），（1），（2）D.（2），（4），（1），（3）15.The main liability on a bank balance sheet is ______。
A.depositsB.capital and reservesC.loans and overdraftsD.cash16.______ shows that net income for a specified period of time and how it was calculated。
A.The income statementB.The capital statementC.The accounting statementD.The statement of financial condition17.Why must the liabilities and assets of a bank be actively managed？______。
A.Because assets and liabilities are not evenly matched on the same time scaleB.Because assets and liabilities are evenly matchedC.Because the interbank market uses LIBORD.Because assets and liabilities can be underwritten18.If the expected returns of two risky assets have a perfect negative correlation，then risk 。
A.is increasedB.falls to zeroC.is unaffectedD.is reduced by one-half19.A possible disadvantage of freely fluctuating exchange rates with no official intervention is that 。
A.some nations would experience continual deficitsB.the exchange rates may experience wide and frequent fluctuationsC.nations would no longer be able to undertake domestic policies designed to achieve and maintain full employmentD.nations would need a larger supply of international reserves than otherwise20.What are your GBP/USD position and the average rate if you sell ￡4m at 1.6350 buy ￡5m at 1.6340 and sell $5m at 1.6348？A.Short ￡2 058 478.10 long $3 370 000 at 1.6371B.Long ￡5 941 521.90 short $9710 000 at 1.6342C.Short ￡5 941 521.90 long $9 710 000 at 1.6342D.Long ￡4 058 478.10 short $6 630 000 at 1.633621.A correlation coefficient of +1.0 means two stocks are ______。