金融英语FECT 单选题附答案
(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。
金融英语的单选题
金融英语：FECT-1单选题（一）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 ______.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 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 1.6336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.D（二）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 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.C（三）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 are 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 trading 19. 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（四）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.A一、单选1、我省规定，各种机动车、拖挂车载重量超过十吨的，其超过部分（B）征收车船使用税。
金融专业英语证书考试FECT单选练习20题-附答案
金融专业英语证书考试FECT单选练习20题-附答案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.A。
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FECT单选题附答案
金融英语FECT单选题附答案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 favourof 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 known 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 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 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 at1.6348?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.D。
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。
2011金融英语(FECT-1)考试综合单选题1(英语学习).doc
2011金融英语(FECT-1)考试综合单选题1（英语学习）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 accounts。
(金融保险)金融英语单选题练习
金融英语：FECT-1单选题（一）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 ______.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 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 1.6336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.D（二）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 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.C（三）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 are 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 trading 19. 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（四）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.A。
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：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。
FECT综合测试2(有答案)
TEST2PART1 LISTENING1. A. Financial markets must support sound financial institutions.B. Sound financial institutions are made by financial markets.C. Financial markets should be backed by strong financial institutions.D. Financial markets are sound because of financial institutions.2. A. US dollar is going higher vs. Japanese Y en.B. US dollar is going higher vs. Pound Sterling.C. US dollar is going lower vs. Japanese Y en.D. US dollar is going lower vs. Deutsche Mark.3. A. Please remit us the bill amount through Barclay's bank on due date.B. Please claim the bill amount on Barclay's Bank on due date.C. Please pay the bill amount to Barclay's Bank.D. Please inform Barclay's Bank to reimburse us on due date.4. A. The People's Bank of China may not provide loans for organizations or individuals.B. The People's Bank of China may not give financial support to enterprises.C. The People's Bank of China may act as a financial guarantor for organizations orindividuals.D. The People's Bank of China may not effect a financial guarantee for individuals ororganizations.5. A. Policy is the only factor that affects stock prices.B. Policy is one factor that affects stock prices.C. Monetary policy is one of the factors that affect stock prices.D. Monetary policy is the only factor that affects stock prices.6. A. I wish to cash some cheques.B. I wish to cash some traveler's cheques.C. I wish to pay cash for my expenses here.D. I wish to pay for my traveller's cheques here.7. A. The L/C will be confirmed by our bank.B. Our bank's agent will confirm the L/C.C. The credit will be opened by our bank's agent.D. Our branch in San Francisco will confirm the L/C.8. A. U.S. dollar is dearer. B. U.S. dollar is higher.C. Japanese yen is weaker.D. Japanese yen is stronger.9. A. The draft is a sight one. B. The draft is payable by Citibank.C. The bill is drawn on Citi Branch.D. The bill is not negotiable.10. A. We paid you early as required.B. Y our documents came to us as required.C. Y our documents have been correctly presented as required.D. Y ou did not present the documents as required.Section Two (10%)11. A. To apply for rolling over the loan for another period. B. To default on repayment.C. To repay it immediately.D. To apply for a new loan.12. A. 827.28 B. 829.19 C. 826.71 D. Not mentioned.13. A. He sold a house. B. He borrows some money from the man.C. He borrowed some money from the bank.D. He visited a new house.14. A. She pays a visit to the bank.B. She deals with a transaction with her customer.C. She wants to check Parks' cash and transactions of the day.D. She pays a visit to the Auditing Department.15. A. About remitting money. B. About getting a bill of exchange.C. About discounting a bill of exchange.D. About quotation of buying rate.16. A. she definitely accepted the request. B. She will not do what the man requested.C. She will use her car.D. She definitely refused the request.17. A. How to get a ticket to Paris. B. How to go to Paris.C. How to transfer money to Paris.D. How to fill the form.18. A. To open a current account. B. To open a savings account.C. To cash her cheques.D. To draw money from her savings account.19. A. 5% B. 3% C. 8% D. 6%20. A. The interest rate will be lowered. B. The interest rate will be stable.C. The interest rate will increase.D. The interest rate will be floating. Section Three (10%)Questions 21--23 are based on passage 121. A. 4:00 p.m. B. 5:30 p.m. C. 6:00 p.m. D. 6:30 p.m.22. A. He goes to concerts. B. He visits his friends.C. He meets his customers.D. He works at home.23. A. The bank's staff. B. The bank's location.C. The bank's long hours of services.D. The bank's balance sheet.Questions 24-26 are based on passage 224. A. Short term loans without guarantees by banks.B. Long term loans without guarantees by their respective governments.C. Long term loans under guarantees by their respective governments.D. Medium term loans under guarantees by their respective banks.25. A. International banks. B. industrial nations.C. Syndicates of international banks.D. Developed countries.26. A. Y es, they are. B. No, they are not.C. Y es, they are. They represent unusual risk to banks.D. No, they are not. They represent usual risk to banks.Questions 27-30 are based on Passage 327. A. 146 B. 159 C. 194 D. 16828. A. US$ 32.1 billion B. US$ 37.4billion.C. US$ 27.3 billion.D. US$ 4.8 billion.29. A. Allowing more foreign banks to do RMB business in Pudong.B. Extending the experimentation to Shenzhen.C. Increasing the limit on the RMB position of the foreign banks on a case-by-case basis.D. All of the above.30. A. To introduce new products and expertise.B. To improve efficiency in financial intermediation.C. To introduce more foreign capital into China.D. Both A and BPart two ReadingSection One (10%)31. Which activities are not the investment banking activities?A. underwriting new issuesB. financial advisingC. dealing and broking 交易和经纪D. savings'taking32. ___________is the purchase of one company by another using mainly borrowed funds.A. A horizontal merger横向兼并B. A leveraged buyout杠杆收购C. A vertical merger 垂直合并D. A MBO =management buyout管理层收购33. The bill of lading提单is evidence of ownership. It thus functions as a ________.A. receipt for goods货物收据B. contract for delivery合同交货C. title document所有权文件D. negotiable instrument票据34. Liquidity ______________.A. is a measure of how quickly an item may be converted to foreign currenciesB. is a measure of how quickly an item may be converted to cashC. is a measure of how quickly an item may be converted to liabilities 责任D. is a measure of how quickly an item may be converted to fixed capital35. Among various worries concerning the internet banking, the first and foremost is theproblem of ______.A. profitB. interestC. clientD. security36. According to the rules of debit and credit for balance sheet accounts ______________.A. decreases in asset, liabilities, and owner's equity accounts are recorded by debitsB. increases in liabilities and owner's equity accounts are recorded by creditsC. decreases in liabilities and asset are recorded by creditsD. increases in asset and owner's equity are recorded by debits37. _________ consist of a simultaneous sale or purchase of currency.A. Spot transactions现货交易B. Forward transactions 期货交易C. Option forward transactions 期权远期交易D. Swap transaction掉期交易38. Cash inflows from financing activities for a bank exclude: ________.A. receiving depositsB. issuance of equity securities (capital stock)C. issuance of debt securities ( bond, notes, mortgages)D. redemption of debt赎回债务39. When a bank holds some valuables on behalf of its customer, the relationship between thebank and customer is ___________.A. debtor-----creditor债权人债务人B. bailor--------bailee 寄托人与受托人C. principal-----agentD. trustor-------trustee 委托人与受托人40. The red clause documentary credit is often used as a method of ______.A. providing the seller with funds prior to shipmentB. providing the buyer with funds prior to shipmentC. providing the seller with funds after shipmentD. providing the buyer with funds after shipment红条款信用证是允许出口商在装货交单前可以支取全部或部分货款的信用证。
金融英语证书考试FECT模拟试题及答案-5
2012年金融英语证书考试FECT模拟试题及答案-5SECTION ONE (Compulsory) ：Single-choice questionsfrom the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points)1. Which belongs to the Tightening of fiscal policy tools? ( )A. Reduce government spending and increase tax revenueB. Reduce government spending and reduce taxesC. Increasing government spending and reducing taxesD. Increase in government expenditure and increase tax revenue2. What market is the Most in need of the advertising? ( )A. Fully competitive marketB. Monopolize marketC. Competitive monopoly marketD. Oligopoly market3. The value of national output: ( )A. Is the same of the output of all businesses.B. Is the aggregate of output of employed persons.C. Is synonymous with aggregate manufacturing output.D. Utilizes the "added value" concept.4. With C = 10 + 0.7Y and the level of income changing from $70 billion to $80 billion, the increase in consumption and the revised average propensity to consume (ape) respectively would be: ( )A. $9 billion and 0.78.B. $6 billion and 0.8.C. $7 billion and 0.79.D. $7 billion and 0.825.5. Which of the following goods is likely to have the most elastic demand? ( )A. A particular brand of breakfast cereal.B. Breakfast cereals in general.C. A very cheap good on which not much is spent (e.g. matches newspaper) .D. An essential good.6. School students paying a lower fare than adults on the MTR trains, or cheaper tickets to the theatre, is an example of: ()A. The suppliers making less profit because some customers pay a lower price.B. Consumers obtaining more consumer surplus.C. Price discrimination allowing the suppliers to make more profit from charging a higher price tocustomers whose demand is more elastic.D. Price discrimination allowing the suppliers to make more profit from charging a lower price to customers whose demand is more elastic.7. A futures trader goes long one futures contract at $450. The settlement price 1 day before expiration is $500. On expiration day, the future is trading at $505. The least likely way the futures trader will lock in herprofits on expiration is: ( )A. Take delivery of the underlying asset and pay $500 to the short.B. Close out the futures position by selling the futures contract at $505.C. Take delivery of the underlying asset and pay the expiration settlement price to the short.D. Cash settle the futures and receive the difference between $500 and the expiration settlement price.8. In the context of break-even analysis, the Margin of Safety for a firm is: ( )A. The difference between the sales revenue achieved and the break-even revenue.B. The difference between planned (or actual) output and the break-even quantity in a particular time period.C. The percentage difference between planned (or actual) output and the break-even quantity.D. The difference between planned (or actual) output and the break-even quantity.9. There is 5-year annuity of $3,000 per year. However, the first payment will not pay until year 3. Assuming the interest rate is 10%, calculate the present value of this annuity. ( )A. $8397.B. $9,399.C. $10,258.D. None of the above.10. Hub Global, Inc. has issued two classes of debt securities to finance its operations, a first mortgage bond and debenture bonds. All else equal, will the default and recovery rates of the debenture likely be higher than the first mortgage bond? ( )A. Answer A.B. Answer B.C. Answer C.D. Answer D.SECTION TWO(Compulsory)：Reading Comprehension (10 points)Gary Zeller, an independent portfolio manager who manages money for high-net-worth individuals, is a proponent of the efficient market hypothesis. He uses the Treynor-Black model to determine asset allocations for his portfolios. At the moment, he is considering several investments for new portfolios. Here are their characteristics.The risk-free rate is 5.7%. The expected return of the S&P 500 Index is 10%, and the index's standard deviation is 14%.Zeller plans to create a portfolio using a mix of the S&P 500 Index, the risk-free asset, and the four stocks discussed above. He uses the data above to select the appropriate asset allocations to maximize returns.Recent market activity has Zeller concerned. For several weeks he has seen stocks with weak fundamentals stage a strong rally, while solid, steady-growth stocks have lagged. After extensive research into technical trends and an analysis of the market's fundamentals, Zeller has come to believe the recent trend in the market is likely to continue, with speculative stocks continuing to rally.Despite the gains in speculative stocks, Zeller sees continued weakness in larger, solid stocks causing a decline in the S&P 500 Index. To compensate for this risk, he purchases put options on the 50 largest stocks in the capitalization-weighted index instead of buying the index itself for the new portfolios.Later that day, Zeller receives an e-mail from Florence Whitaker, a client whose portfolio has performed poorly in recent months. She is not happy with the results and questions Zeller's allocation strategy.In a response e-mail, Zeller defends the Treynor-Black model and makes the following points:The strategy is designed to beat the market, but not necessarily to generate gains when the market is down.In your portfolio, I overweight the stocks with the highest potential return to boost performance.A mix of individual stocks and index funds gives the portfolio better potential returns than the index, while offering less risk than the individual stocks.All of the stocks in your portfolio have betas below 1.After sending the e-mail, Zeller opens up a spreadsheet to crunch some numbers. Several of his portfolios have underperformed over the last year, and he resolves to consider whether he should relax his assumptions about the accuracy of forecasts.1) From highest allocation to lowest, how should Zeller allocate the four stocks in his portfolio? ()A. Hearthstone, Minster Mask and Costume, Kustom Auto, Imperial Shipyards.B. Minster Mask and Costume, Kustom Auto, Imperial Shipyards, Hearthstone.C. Kustom Auto, Imperial Shipyards, Minster Mask and Costume, Hearthstone.D. Minster Mask and Costume, Hearthstone, Kustom Auto, Imperial Shipyards.2) Which of Zeller's actions is least compatible with the use of the Treynor-Black model? His: ()A. Purchase of put options.B. Use of index funds.C. Willingness to actively manage portfolios.D. Support of the efficient market hypothesis.3) In light of his observations about market movements, Zeller should: ()A. Increase his cash allocation.B. Increase his index-fund allocation.C. Take no action, the model will account for any changes.D. Increase his allocation of actively managed stocks.4) If Zeller stops assuming forecasts are accurate, he will most likely: ()A. Increase the number of stocks in the portfolio.B. Shift subtly toward CAPM.C. Reduce both risk and potential return of the portfolio.D. Need to rebalance the portfolio more often.5) Assuming Zeller intends to take positions in all four of the stocks discussed above, how many should he sell short? ()A. 1.B. 0.C. 2.D. 3.SECTION THREE(Compulsory)：Explanations of terms(25 points)1. Margin requirement2. Interest ceiling3. Bank for International Settlements (BIS)4. Bancassurance5. Secondary marketSECTION FOUR(Compulsory)：Answer Questiones (32 points)1: Explain the Mechanism of Money Supply.2: What is the Function of stock exchanges?3: List the Counter-measures of Deflation as more as possible.4: What is Financial Liberalization? And what is The Nature of Financial Liberalization?SECTION FIVE(Compulsory)：Caculation (13 points)Let's take an example. Suppose that a share of Haier in the Hong Kong Stock Market had a closing price yesterday of HK $ 10, but new information was announced after the market closed that caused a revision in the forecast of price next year to go to HK $15. If the annual equilibrium return on Haier is 20%, what does efficient markets theory indicate the price will go to today when the market opens? (Assume that Haier pays no dividends.)SECTION SIX(Compulsory)：Explanations of Model (10 points)Please illustrate the macroeconomic-based risk factor models:参考答案SECTION 11. B C D D C ，D C B B ASECTION 2Reading Comprehension: (10 points)1) B was correct!The Treynor-Black model calls for greater weights to stocks with high forecast alpha relative to unsystematic risk. The Sharpe ratio reflects that relationship. To calculate the Sharpe ratio, we subtract the risk free rate from the expected stock returns, and then divide by the stock's standard deviation. Beta is not a measure of unsystematic risk, so it should not be used. Sharpe ratios for the four stocks are as follows: Hearthstone = 27.35%.Imperial = 27.5%.Minster = 46.14%.Kustom Auto = 37.86%.The higher the Sharpe ratio, the higher the level of alpha relative to unsystematic risk. As such, the highest weighting should go to Minster Mask and Costume, the second-highest to Kustom Auto, the third-highest to Hearthstone, and the fourth-highest to Imperial Shipyards.2) A was correct!Index funds appeal to efficient market theorists in part because they offer a low-cost way of investing in the market without trying to exploit infrequent mispricing. While active management of any sort may seem incongruous against the efficient market backdrop, it is active management, or the search for alpha, that clears up mispricings and theoretically leads to market equilibrium. The Treynor-Black model is an optimization framework that assumes markets are nearly efficient but does allow for some active management. The Treynor-Black model assumes a portfolio consisting of index funds, stocks, and the risk-free return. Put options have no place in that model.3) D was correct!As markets become more efficient, alphas shrink, and portfolio managers using the Treynor-Black model will reduce their allocation of actively managed stocks. However, Zeller expects mispricings to increase in the coming months, so he should step up the active management of his portfolios to take advantage of the higher alphas.4) C was correct!The Treynor-Black model assumes forecasts are accurate. Relaxing that assumption requires analysts to place less weight on forecasts. If we discount the value of forecasted alpha, the weighting of the actively managed portion of the portfolio will decrease relative to the index. A higher index weighting is likely to reduce both risk and potential return. The less trust we have in forecasts, the more forecasted alpha is required to justify making a bet on an individual stock. Stocks with marginal alpha will become less appealing, so the number of stocks suitable for investment will decline. The number of stocks in the portfolio is more likely to decline thanto increase. CAPM is very different from the Treynor-Black model, and accounting for inaccurate forecasts does not change that. Portfolio rebalancing is not relevant here.5) B was correct!While one of the stocks is expected to underperform, the index and two of the stocks have lower Sharpe ratios than the index; all have a positive expected alpha. As such, none should be shorted.SECTION 3Explanations of terms：(10 points)1. Margin requirement：Margin requirement refers to that a central bank sets the percentage of loans in the volume of securities transactions for various loans involving securities transactions, such as setting the amount of payment according to the ratio of margin when people purchase securities on credit.2. Interest ceiling：Interest ceiling is the maximum of the interest rate paid by commercial banks on time deposits and savings deposits, the purpose of which is to prevent banks from over competing for deposits by raising interest rates and to avoid credit risk.3. Bank for International Settlements (BIS)：An international organization fosters the cooperation of central banks and international monetary policy makers. Established in 1930, it is the oldest international financial organization, and was created to administer the transaction of monies according to the Treaty of Versailles. Among others, its main goals are to promote information sharing and to be a key center for economic research.4. Bancassurance：The term used to describe the sale of insurance products in a bank. The word is a combination of "banque or bank" and "assurance" signifying that both banking and insurance are provided by the same corporate entity.5. Secondary market：A market in which an investor purchases a security from another investor rather than the issuer, subsequent to the original issuance in the primary market, also called aftermarket.SECTION4Question1：Answer:The mechanism of money supply involves such things as where money comes from, through what channel money comes into circulation or how money is supplied in .an economy, thus forms the movement of money.Money in modern economy is created by the banking system. As we mentioned in Section 1 , the process of money creation involves the central bank, commercial banks, depositors and borrowers, but among them the most important are the central bank and commercial banks. The former has the privilege to provide monetary base and regulate money supply while the latter creates money.Question2：Answer:Stock exchanges are formal organizations. They are made up of members who use the exchange facilities and systems to exchange or trade listed stocks. These exchanges are physical locations where members assemble to trade. Stocks that are traded on an exchange are said to be listed stocks. That is, these stocks are individually approved for trading on the exchange by the exchange. To be listed, a company must apply and satisfy requirements established by the exchange for minimum capitalization, shareholder equity, averageclosing share price, and othercriteria. Even after being listed, exchanges may delist a company's stock if it no longer meets the exchange requirements.To have the right to trade securities or make markets on an exchange floor, firms or individuals must become a member of the exchange, which is accomplished by buying a seat on the exchange. The number of seals is fixed by the exchange and the cost of a seat is determined by supply and demand of those who want to sell or buy seats. In early 2001, there was 1, 366 seats on the NYSE, and the cost of a seat were $2 million.Stock exchanges perform important roles in national economies. Most important, they encourage investment by providing places for buyers and sellers to trade securities. This investment, in turn, enables corporations to obtain funds to expand their businesses.Question3：Answer:As deflation is caused by varied factors, the ways to deal with deflation should be diversified. Generally speaking, deflation is handled with the following measures;(1) Expansionary macroeconomic policiesIn order to enhance the aggregate demand and prevent an economy from sliding into recession when there is a deflation, expansionary monetary and fiscal policies should be applied. On one hand, expansionary monetary policy is used to stimulate effective demand; on the other hand, expansionary, fiscal policy increases government spending to make up insufficient investment in the private sector. During deflation expansionary, fiscal policy is more effective in stimulating the aggregate demand, while monetary policy in short run is slow to show effects which also depends on enterprise and household demand. From 1998 to 2002, the Chinese government raised RMB 6, 600 billion by issuing national debts and the funds have been used in infrastructure construction and played a very important part in increasing the aggregate demand and in gaining an average growth rate of 7. 5%，under the influence of many unfavorable economic variables.(2) Adjustment of production structureThe direct cause of deflation is insufficient effective demand. Insufficient effective demand and excess supply are two sides of a coin. Not only demand should be stimulated, but also excess supply or excess production capacity should be tackled in solving the problem of insufficient demand. As the structural defects of supply causes excess supply, adjustment of production structure is needed in order to weed out excess supply or excess productive capacity. As for adjustment of industrial structure, it is important to escalate industrial structure and find new source of economic growth and form new consumption demand. Meanwhile, foreign markets should be developed and export should be promoted. Usually when there exists excess production capacity, there will be malignant competition in the market. In order to seize market share, there will be continuous price competition so the profit of the whole industry will decline. During the process of fierce competition, some enterprises will be forced to exit the market and there will be more mergers and acquisitions. After that, the malignant market competition will be controlled and price fall caused by the malignant market competition can be possibly avoided.(3) Other counter-measures of deflationBesides the measures mentioned above, the policy of wage and price control is one of countermeasures against deflation. During deflation, a plan to raise wage and prevent prices from declining can be carried out, which has the opposite effect of wage-price guideline during inflation. A government can also intervene stock market with certain policy to push up stock price, which will lead to people's optimistic expectation of future and appreciation of book value of financial assets, hence the effect of wealth increase. In this case, the propensity of consumption of households will be enhanced.So far, some achievements on the study of deflation have been made, but more efforts are needed to look deeply into this economic phenomenon.Question4：Answer:Financial liberalization refers to measures directed at diluting or dismantling regulator，controlling over the institutional structures, instruments and activities of agents in different segments of the financial sector.These measures can relate to internal or external regulations (Chandrasekhar, 2004). Internal financial liberalization typically includes some or all of the following measures, in varying degrees;●The reduction or removal of controls on th e interest rates or rates of return charged by financial agents. Of course, the central bank continues to influence or administer that rate structure through adjustments of its discount rate and through its own open market operations. But deregulation typically removes interest rate ceilings and encourages competition between similarly placed financial firms aimed at attracting depositors on the one hand and enticing potential borrowers to take on debt on the other. As a result, price competition squeezes spreads and forces financial firms (including banks) to depend on volumes to ensure returns.●The withdrawal of the state from the activity of financial intermediation with the conversion of the " development banks" into regular banks and the privatization of the publicly owned banking system, on the grounds that their presence is not conducive to the dominance of market signals in theallocation of capital. This is usually accompanied by the decline of directed credit and the removal of requirements for special credit allocations to priority sectors, whether they are government, small-scale producers, agriculture or other sectors seen as priorities for strategic or developmental reasons.The easing of conditions for the participation of both firms and investors in the stock market by diluting or doing away with listing conditions, by providing freedom in pricing of new issues, by permitting greater freedoms to intermediaries, such as brokers, and by relaxing conditions with regard to borrowing against shares and investing borrowed funds in the market.●The reduction in controls over the investments that can be undertaken by financial agents and, specifically, the breaking down the "Chinese wall" between banking and non-banking activities. Most regulated financial systems sought to keep separate the different segments of the financial sector such as banking, merchant banking, the mutual fund business and insurance. Agents in one segment were not permitted to invest in another for fear of conflicts of interest that could affect business practices adversely. The removal of the regulatory walls separating these sectors leads to the emergence of "universal banks" or financial supermarkets. This increases the inter-linkages between pyramiding financial structures.●The expansion of the sources from and instruments through which firms or financial agents can accessfunds. This leads to the proliferation of instruments such as commercial paper and certificates of deposit issued in the domestic market and allows for offshore secondary market products such as ADRs (American Depository Receipts—the floating of primary issues in the United States market by firms not based in the United States) or GDRs (Global Depository Receipts).The liberalization of the rules governing the kinds of financial instruments that can be issued and acquired in the system. This transforms the traditional role of the banking system's being the principal intermediary bearing risks in the system. Conventionally, banks accepted relatively small individual liabilities of short maturities that were highly liquid and involved lower income and capital risk and made large, relatively illiquid and risky investments of longer maturities. The protection afforded to the banking system and the strong regulatory constraints thereon were meant to protect its viability given the role it played. With liberalization, the focus shifts to that of generating financial assets that transfer risks to the portfolio of institutions willing to hold them.External financial liberalization typically involves changes in the exchange control regime. Typically, full convertibility for current account transactions accompanying trade liberalization have been either prior or simultaneous reforms, which are then complemented with varying degrees of convertibility on the capital account. Capital-account liberalization measures broadlycover the following, in increasing degree of intensity, but with a wide variety of patterns of implementation: SECTION 5CaculationANSWERS:We, based on the above conditions given, get the following equation:SECTION 6Explanationdenotes: the return on a value-weighted index of NYSE-listed stocksdenotes the monthly growth rate in US, industrial productiondenotes the change in inflation, measured by the Us, consumer price index denotes the difference between actual and expected levels of inflationdenotes the unanticipated change in the bond credit spread (Baa yield-RFR) denotes the unanticipated term structure shift (long-term RFR less short-term RFR) The explanation:。
金融英语：FECT单项选择题汇总练习.doc
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 accoun tD. 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。
(原)金融专业英语(FECT)中级银行业务模拟试卷3(题后含答案及解析)
（原）金融专业英语（FECT）中级银行业务模拟试卷3(题后含答案及解析)题型有：1. SECTION ONE 2. SECTION TWO 3. SECTION THREE 4. SECTION ROUR 5. SECTION FIVESECTION ONE (Compulsory) Now listen to a short conversation and a passage on the tape. This will be played once on the recorder. You may make notes while you are listening, but you should not answer any questions until the reading is over.Qustion 1听力原文：Personal loanA: Good afternoon, Sir, at your service.B: Oh, thank you. My name is Robert and I’d like to make some enquiries concerning mortgage loan facilities offered by your bank. Am I in the right place?A: Yes, definitely Sir, please take a seat and let me get hold of a mortgage loan application form. Might I know some details about the property you intend to buy?B: I decided to purchase an apartment in Sapphire Court on Stanford Road, south of our town. I have already made my down payment last week and now I am trying to get a mortgage loan to finance the purchase.A: Oh, I see. Is Sapphire Court a new development and what is your purchase price?B: No, it’s a second hand property and as far as I know, it has been 5 years since the building was built. The owner is demanding for ＄1 million.A: You mentioned that you have paid a down payment. If you don’t mind, please tell me how much you have already paid mid the amount of loan you want from the bank?B: I have paid ＄40,000 to the landlord through the real estate agent and I will just need ＄700,000 from the bank. What interest rates shall I pay if I’m approved to get the loan?A: According to practice, we offer our customer mortgage loans on the basis of prime rate plus 1.5 %. At the moment, prime rate is 8 % so your mortgage loan, if allowed, will approximate to 9.5 %. But we might be able to offer you better terms depending on your profession. Let me first try to fill out this application form for you. Can I have your ID card please?B: But I might not want a loan from your bank if the terms are not suitable to me. Should I not fill in any form at this stage?A: Sir, the form is just to record the appropriate details and in any case, we will have to conduct an evaluation of the property before we can approve a loan. In addition, we also need your signature when we come to the very end of the form. There is absolutely no commitment at this stage and you can rest assured that the bank will not force you to take up our loan facilities if you don’t want to.B: I understand. Here is my ID card. You can take a photocopy if you need.A: Thank you Sir. Now I want the actual address and the size of the property. Do you want the repayment to spread across a 10-year schedule?B: Yes, let’s work on a 10-year repayment schedule, It’s Apartment 8A, Sapphire Court, Stanford Road South, so it’s on the 8th floor. The size is about750 square feet as the landlord said. There are 2 bed rooms, a sitting mom, a bath mom and a kitchen. The main window faces the south.A: That sounds rather attractive. We will conduct an evaluation to find out the size and other related facilities. That will give us an idea on how much we can lend. Normally we only lend to a maximum of 70% for second hand properties but if you are looking for ＄700,000, which is only about 66% of your purchase price, I believe there is high chance for the loan to be approved as the property is quite new.B: Just now you mentioned possible better terms. What exactly are they?A: Well, would you mind telling me your profession, your source of income and whether you intend to live in the apartment you purchase?B: I’m an engineer in Arrow & Moral Electronics Inc. and my annual income is 260,000 dollars. I also receive additional income for the articles I write for the magazines, amounting to ＄3,000 a month. I do plan to live in Sapphire Court myself.A: Good. Have you brought with you your salary or income tax statement?B: I’m sorry. I didn’t know you need them. But I can send them to you tomorrow.A: Yes, please. We were talking about better terms just now. For certain profession, we offer special rates and if the property is to be used by the applicant, there will also be special consideration.B: Is there any penalty if I make early repayment?A: Only for the first year. There is no penalty if you make early repayment from the 2nd year onward.B: I see. So all I need to do now is to sign the application form and wait for the bank’s advice on how much I can borrow.A: That’s correct. Now if you don’t mind you may perhaps sign here and I will contact you within the next few days. This is my business card. Meanwhile, if you have other questions, please feel free to call me.B: Thank you. Goodbye.A: Goodbye. Personal loan Banks offer personal loans to their customers either in the form of installment loans or overdrafts. Installment loans are loans granted by the bank to the customer over a fixed period of time. Depending on the needs and nature of the loans, they can be extended for a period of a few days to several years. The repayment schedule is usually fixed in amount and time. The bank usually does net have the right to demand early repayment unless the customer fails to meet the agreed repayment schedule. The most popular repayment schedule would be monthly or semi-monthly and the repayment amount would be spread in equal installments over the whole term of the loan, or as otherwise agreed by both parties. Depending on the needs of the personal customer, the purpose of the loan varies: to finance a vacation or to make tax payment. Installment loans can be secured or unsecured. A bank may, up to a certain limit, advance a loan to a customer without security. An unsecured loan usually carries a risk, thus the borrower is required to pay a higher rate of interest on the amount borrowed. However, a customer with good credit standing can negotiate a loan at a lower interest rate even though no security is given. Usually, unsecured loans are for a shorter period of time and for smaller value, loans of this type are usually offered to those who have stable incomes and are in higher income brackets. Most borrowers are in the professional classes, e.g. engineers, lecturers/ teachers, accountants, etc. A secured loan is based on security provided by the customer which is attached to the loan agreement. The security could be provided in the form of specified assets or personal guarantees.A secured loan usually carries a lower interest payment. If the borrower defaults onthe conditions of the loan, the bank could dispose of the assets given as security, keep what the customer owed or return the remainder to the customer. The most popular secured loans are those for financing the purchase of durable items. These loans usually have a period of at least a few years. An example of a longer loan with high security value is the home mortgage loan, which usually has a term for more than ten years. In a mortgage loan agreement, the asset itself is purchased by the loan and provides the security for the banker. The most popular mortgage loan is the real estate mortgage. Other mortgage loans are, for example, granted to purchase a car. This is called a chattel mortgage. When a customer is in the process of selling an asset, such as, a house and buying another one, this person needs a bridging loan, which is a loan agreement under which finance is required in connection with the sale of one asset and the purchase of another. The finance is required because the customer may be lacking money for buying a new asset before the money comes in for the asset being sold. Because the purchase occurs before the sale, the customer needs to “bridge” the gap.1．What’s the name of the man who is seeking the mortgage loan?正确答案：Robert.2．When did he pay the down payment?正确答案：Last week.3．What is the purchase price of the apartment?正确答案：＄1 million.4．Through whom did he pay to the landlord?正确答案：Through the real estate agent.5．What interest rate does he pay if he gets the loan?正确答案：9.5%.6．How many years repayment schedule do they work on?正确答案：10-year repayment schedule.7．Is there any penalty if he makes early repayment, and how early?正确答案：Yes. Only for the first year.8．Can Robert get unsecured loans if he applies for a short period of time andfor smaller value?正确答案：Yes.9．People in what kinds of professions are mentioned in the passage that are offered unsecured loans?正确答案：Engineers, lecturers, teachers, accountants.10．If a loan is granted to purchase a car, what do we call this kind of loan?正确答案：A chattel mortgage.SECTION TWO (Compulsory) Answer all questions below. Read the following statements and decide whether they are True (T) or False (F). If it is a false statement, try to re-write a correct version.Question 211．The Land Fund is now managed by the HKMA under the direction of the Financial Secretary as a combined portfolio with the Exchange Fund.A．正确B．错误正确答案：B解析：Correction: The Land Fund is now managed by the HKMA under the direction of the Financial Secretary as a separate portfolio from the Exchange Fund.12．After July 997, mainland Chinese banks applying to operate in Hongkong are still placed under the category of foreign banks.A．正确B．错误正确答案：A13．Money is a commodity itself.A．正确B．错误正确答案：A14．Credit instruments are issues by which investors supply permanent financing to firms or other borrowers including governments.A．正确正确答案：B解析：Correction: Equity instruments are issues by which investors supply permanent financing to firms or other borrowers including governments.15．Debit instructions arise when the party to whom payment is to be made demands the funds from the bank holding the debtor’s money.A．正确B．错误正确答案：B解析：Correction: Credit instructions arise when the party to whom payment is to be made demands the funds from the bank holding the debtor’s money.16．Compared with call deposits, time deposits generally have a shorter deposit time restriction, which ranges from 24 hours to one week.A．正确B．错误正确答案：B解析：Correction: Compared with time deposits, call deposits generally have a shorter deposit time restriction which ranges from 24 hours to one week.17．Under conditional lease, the company or the bank holds the title, takes the investment credits and depreciation expenses, and sells or releases the facilities when the lease expires.A．正确B．错误正确答案：B解析：Correction: Under true lease, the company or the bank holds the title, takes the investment credits and depreciation expenses, and sells or releases the facilities when the lease expires.18．A breaker’s cheque is a negotiable instrument.A．正确B．错误正确答案：B解析：Correction: A banker’s cheque may or may not be a negotiable instrument.19．Depending on the need of clients, SWIFT is the most convenient and the safest method.B．错误正确答案：A20．There is no circumstance where the “non-disclosure” rule can be broken without the consent of the customer.A．正确B．错误正确答案：B解析：Correction: There are circumstances where the “non-disclosure” rule can be broken without the consent of the customer.21．Index deposit combines the benefit of a time deposit and an investment.A．正确B．错误正确答案：A22．A negotiable instrument is a conditional Order or promise to pay a certain amount of money.A．正确B．错误正确答案：B解析：Correction: A negotiable instrument is an unconditional order or promise to pay a certain amount of money.SECTION THREE (Compulsory) Write short notes on all questions below. Note form answers me acceptable.Question 323．What are the agents required in the process of money creation through the open-market operations?正确答案： a. central bank b. banks or depository institutions c. brokers/citizens24．List any 4 most general types of bank loans and advances that banks provide to all economic sectors.正确答案： a. working capital loans b. start-up loans c. syndicatedloans d. project financing e. foreign trade financing25．What global electronic banking services can business customers obtain from banks?正确答案： a. cash management services b. trade services c. Electronic Data Interchange (EDI) Services26．List any 3 reasons for having funds moved from one country to another.正确答案： a. the settlement of debts as a result of international trade b. The transfer of funds paid out by foreign firms in file forms of dividends, profits and capital gain incomes. c. remittances to friends and relatives d. government’s aid to foreign countries e. capital flight27．Name any 3 conditions that a company, a person or group of persons need to meet in order to get a bank license in HK.正确答案： a. Minimum paid-up share capital of not less than a legally specified amount (HK ＄150 million for Licensed Banks, HK ＄100 million for Restricted Licence Banks and HK ＄25 million for Deposit-taking Companies).b. For overseas applicant, the incorporation must be in countries where the supervisory authorities have the capabilities to meet the minimum supervision standards as recommended by the Basle Committee.c. For local applicant, it has been an authorized institution for at least 10 years.d. There is also an asset requirement for Licensed Banks( US ＄16 billion for overseas and HK ＄4 billion for local applicants as at end 1997), which is revised annually.e. For local applicant, there is an additional minimum requirement for public deposit of HK＄3 million as at end 1997.28．What does the Federal Reserve Payment Services include?正确答案： a. the processing and collection of checks through Federal Reserve Banks. b. the wire transfer of funds and securities against payment. c. automated clearing house services in which Federal Reserve Banks process electronically originated credit and debit transfer. d. the large-dollar payments system called Fedwire.SECTION ROUR Answer one question only.Question 429．What is merchant banking? Why does it grow rapidly in Hong Kong?正确答案：Merchant banking: —providing financial advice and a wide range of special services for companies in the area of finance and management. —main functions in merchant banking: -act as both brokers and dealers in wide variety of securities; -provide research services and give consultancy services on all varieties of management problems; -money market instruments are traded; -underwrite the debt issue of government and manage the sale of corporate debt and stock; -serve as agents to handle the payment of dividends to shareholders; -handle mergers, acquisitions, interest rate Swaps, leveraged buyouts, and other fee-earning activities; -arrange or participate in syndicated lending/project financing; -provide advisory/underwriting services in IPO/placement. The reasons for the rapid growth of merchant banking in Hong Kong: —Institutionalization -Growing importance of institutional investors in the market place has provided a chance for the expansion of merchant banks. -Since 1990s, the main players of the stock market has shifted from individuals to the institutions. —Deregulation -Competition across borders becomes available as the relaxation of regulations in the US and some European states and the development of Euro-market. -Because of the capital limitation, individuals must seek for help from the merchant banks which have considerable scale in global operations. —Securitization and disintermediation -The change of the source of corporate financing from bank loans to merchant banks’ services has increased the development of merchant banking business. Many corporations like to seek financial arrangement through merchant banks. —Advanced technology -Since the communication ability has been intensified by the advanced technology, the information exchange among merchant bankers and other financial institutions becomes more vigorous. —Industrial organization restructuring -The environment for file growth of merchant banking has been created with the rapid restructuring of industrial organization, such as the breaking-down of conglomerates, introduction of leverage-buy-out, favorable acceptance of “junk”bond. —Globalization -From 1990s onwards, a global market has been laid down by the creation of the Euro-market and the increasing use of commercial papers and other financial instruments and the impetus for the growth of merchant banking business has been provided by this favorable conditions.Question 530．Describe money markets and capital markets.正确答案：Money markets: Concept: —Money markets are exchange systems where short-term, usually less than one year, highly liquid and readily marketable credit instruments are traded. Instruments traded in Hongkong money markets: —Negotiable certificates of deposits: -a financial instrument issued by a bank or a deposit-taking company as evidence of indebtedness; -repayable either on demand or at a determined future time; -carries either a fixed or floating interest rate. —Inter-bank lending and borrowing: -in Hongkong, it is anintangible market participated by licensed banks and deposit-taking companies; -borrowing is on unsecured and short-term basis, ranging from overnight call up to 6 to 12 months; -HIBOR is used to determine the offer price. —Floating rate notes: -a negotiable instrument bearing a floating interest rate and issued by a company; -the quality of the note will be reflected by the reception of the notes in file market; -a highly-rated company will offer notes with a better rate. —Commercial papers/ bills: -a form of negotiable instrument issued by companies; -a promissory note, unsecured and with a maturity date; -comparatively high yield. —The Exchange Fund Bills: -similar to the treasury bills issued in other countries; -investors earn no interest but receive a return based on the discount from their face value at maturity; -important investors are: licensed banks, deposit-taking companies, insurance companies, other financial companies and institutions; -advantages: highly liquid; strong credit standing; a large and expanding market. —The Government Bond Instruments traded in the international money markets: —Treasury bills. —Eurodollars. —Eurodollar certificates of deposits. Through local brokers and dealers who bring buyers and sellers together for a commission, one can easily get access to international money market instruments in Hongkong.Capital markets:Concept: —it is a market where long-term financial instruments with maturities of upwards of one year are traded.General characteristics of the instruments: —greater risk; —less liquidity; —higher degree of default rate. Types of instruments: —Credit instruments -they are issues by which a lender advances funds to a borrower in return for the borrower’s IOU. —Equity instruments -they are issues by which investors supply permanent financing to firms or other borrowers including governments.SECTION FIVE Answer one question only.Question 631．Analyzing the “security”—the factor that banks employ to consider the loan granting.正确答案：(1) Concept of the security Security can be viewed as a “comfort”which provides the lending banker with the assurance that if things go wrong with the loan, there is another source of recovery available to minimize credit losses.(2)The classification of the security A. Direct security and collateral Direct security: refers to the borrower’s assets obtained by the bank by way of a mortgage, charge or lien. Collateral: refers to any security deposited by a third party to secure the indebtedness of the borrower. B. Tangible and intangible Tangible: include land, buildings, fixed deposits, shares and stocks. Intangible: guarantees and indemnities. (3)The types of security and their features Land and other property Most popular type of security. It can be classified as “legal” or “equitable”mortgage. Life policy It is an adequate form of security,especially against loans made to a sole proprietorship. Stocks and shares It is common type of security. To avoid the risk involved, loans should not be made against “unquoted”shares. Guarantees It is a written undertaking to be responsible for the debt of another party. There are three parties involved: creditor, debtor and guarantor. Debentures It is a written acknowledgement of indebtedness by a company, usually given under its seal and setting out the terms of interest and repayment. Deposits It is a safe and highly liquid form of security. Its value is readily available and realization is relatively easy. (4)The factors influencing the judgment of the security Value: the price at the time it is necessary to sell the asset so as to recover the loan. Type: Acceptability: acceptable to the bank as security, and be readily available to be transferred to the bank. Realizability: the last step that the bank takes to recover the loan.(5)The criteria for good or suitable security Easy to value. Easy to transfer tide. Easy to realize. Stable and increasing in value. (6)The advantage of using security It provides banks with some form of insurance to safeguard the bank against any loss if the loan turns out to be irrecoverable. (7)The limitation of using security Security is a protection rather than a source of repayment. It should be the last item to be considered in loan approval.Question 732．(a)Write short notes on the following: (i)BACS (ii)CHAPS (iii)CHIPS (iv)FedWire (b)What are the significance and limitations of the balance sheet?正确答案：(a)(i)BACS: Formerly known as Bankers’Automated Clearing Services. BACS handles direct debits and credits as well as standing orders in the UK. The clearing process is normally completed on the third day of the operation cycle. (ii)CHAPS It refers to the Clearing House Automated Payments System. It is available nationwide in Britain. It is operated by a number of settlement banks who communicate directly through computers. Payments sent through the system are guaranteed and unconditional, and cleared on a same-day basis. (iii)CHIPS It refers to Clearing House Inter-bank Payments System. It is a computerized network in the United States for transfer of international payments. It links up a number of international banks and other financial institutions which have offices or subsidiaries in New York City. Members are classified as “settling” and “non-settling”member banks. Each non-settling member bank maintains an account with a settling member which effects settlement on its behalf. (iv)FedWire It is a fund-transfer system operated in the USA by the Federal Reserve System (file Fed, the Central Bank of the US). This fund-transfer network handles transfers from one financial institution to another with an account balance held with the Fed. The transfer of reserve account balances is used for the buying and selling of Fed funds, and credit transfers on behalf of bank customers.(b)A balance sheet is basically a financial statement that gives an accounting pictureof assets owned by a business operation and of claims outstanding on a specific date. The balance sheet acts as a snapshot of the company’s position at a point in time. The balance sheet provides us with some idea of a company’s real worth and the trends of performance. It is static and historical in that it shows the assets and liabilities at a past point in time. Some of the assets are estimations only and as valued on the date stated.Question 833．Wang wants to transfer his money from China to the US. Could you explain the different money transfer methods provided by banks to him?正确答案：There are three methods of money transfer provided by banks: Draft: —A draft is an order in writing, made out to a person other than the maker, instructing him to pay a certain sum of money to a named person called the payee. It is also called a “bank draft” or “banker’s cheque”. —A draft can be sent by mail or handed over directly to the payee by the customer. —the process of a draft handling: -A request from a customer to a banker to issue a draft to a recipient overseas; -The draft drawn by the drawer bank on the drawee bank for the transaction of the draft; -The drawer advises the drawee of the issue of the draft and informs the drawee bank to pay the payee when the draft is presented for payment. —The features: -A draft sent by the customer is the least expensive, but is the slowest form of transmission. -The customer bears the risks of theft, destruction or loss in the mail system when the draft is sent by the customer himself. Mail transfer: Mail transfer is an instruction given by one hank to another, based on the request of the customer. —The way to transfer : -a written draft; -internal communication system. —The banks involved: -the remitting bank: the hank which instructs another bank to make payment to the nominated recipient; -the advising bank: the bank which receives the instruction from the remitting bank. —The process of mail transfer: -The request from a customer to the remitting hank to transfer the money; -The remitting bank will send a statement to the advising bank and tell it the exact amount being transferred, the name of the payee and his address; -The advising bank will inform the nominated recipient and check the recipient’s identity and then release the funds. —The features of the mail transfer: -It is a little safer. -The speed is low. -It could also be delayed, destroyed or even stolen. -Such delay involves additional interest payment. Telegraphic transfer: —It is an authenticated order given by the remitting hank to the advising bank to which it is addressed to make available specified funds to a named recipient. —The way to transfer: cable or telex. —The process of the telegraphic transfer: -The request from a customer to the remitting bank; -The remitting bank will send a statement to the advising bank through cable or telex which contains a “test-key”; -The advising bank receives the transmission and uses the test-key to verify the genuineness of the telex or cable instruction. And then advises the recipient to collect the funds. —The features ofthe telegraphic transfer: -It is the most expensive way of money transfer; -Fast in speed; -One of the reliable forms of money transfer.。
金融保险-金融英语单选题练习 精品
金融英语：FECT-1单选题（一）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 ______.A. are perfectly correlatedB. are pletely 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 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 ine for a specified period of time and how it was calculated.A. The ine 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. Sho rt £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.D（二）1. Under which one of the following circumstances would it be wise for your customerto 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 paring 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 puter 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 mercial 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 bee 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. ine 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.C（三）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 are 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 pared 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 beenstamped 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 trading 19. 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（四）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 pared 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 pany's balance sheet? ______.A. It displays sources and uses of cash for the periodB. It is unnecessary if both an ine statement and a statement of cash flows are availableC. It is a separate representation of the pany'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 ine 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 pany'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.A。
FECT综合测试
F E C T综合测试3(有答案)(总10页)--本页仅作为文档封面，使用时请直接删除即可----内页可以根据需求调整合适字体及大小--TEST-3Part One ListeningSection One (10%)1. A. The company is worth of financing.B. This company is highly rated in credit status.C. This company is rated lower in credit standing.D. This company runs a greater risk to make loans.2. A. Visa Card, Access, American Express and Diner's Card are all credits.B. Credit cards are the same thing as charge cards.C. Another name for credit card is charge card.D. American Express is not credit card in the real sense.3. A. Two separate spot transactions B. One spot and the other forward transactionC. a " one month swap"D. the call option4. A. USD B. USDC. USDD. USD5. A. Surplus increase B. deficit increaseC. no effectD. all of the above6. A. They want to close their accounts in the bank.B. The bank might close their current accounts.C. The customers' overdrawn accounts must be closed.D. The bank closed their overdrawn accounts.7. A. Their operations must be brisk.B. They have a large profit for the year's operations.C. There has been a large deficit in the year.D. They anticipate a great excess of debts over income for the year's operations.8. A. CHAPS B. SWIFT C. CHIPS D. CHATS9. A. The check is out of date. B. The check is post-dated.C. The check is in too large amount.D. The check is a crossed one.10. A. If a remitting bank cannot take proper care in collection, the exporter will do it himself.B. If a remitting bank cannot fulfill its obligation in collection, theexporter will claim indemnity on it.C. If a remitting bank cannot take proper care in collection, it will lose a customer.D. If a remitting bank cannot fulfill its obligation in collection, Itwill cause loss to the exporter.Section Two (10%)11. A. 9 . B. 12 noon C. 3 . D. 6 .12 A. January 1, 1999 B. July 1, 1999 C. January 1,2002 D. July 1,200213. A. to change pounds to yuan B. to send money to LondonC. to get a permitD. to know the rate of exchange14. A. people who has steady income B. People who has a good work record.C. People who has much moneyD. Both a and b15. A. of the house value. B. of the mortgage value.C. of the bank's appraised value.D. of the depreciated value.16. A. A librarian B. A professor C. An accountant D. A reporter17. A. 8875689 B. 8758679 C. 8756879 D. 8576789and teacher B. employee and boss C. customer and broker D. two bank clerks19. A. About the amount of RMB deposited with the bank.B. About the rate of interest for RMB deposited with the bank.C. About the terms of deposit with the bank.D. About the conditions of deposit with the bank.20. A. He got a credit card of his friend and come to ask how to use it.B. He got a card and did not know whose card it is.C. He has lost his credit card and come to ask what to do.D. He has found a credit card and come to ask what to doSection Three (10%)Questions 21--23 are based on passage 121. A. JCB card B. Diner's Club C. Visa card D. Federal-Master22. A. $590 million B. $16 billion C. $590 billion D. $16 million23. A. from fees collected from its customers who pay for their charges in monthly installments.B. from fees collected from the stores that accept credit cardC. by charging its customer yearly feesD. by charging its customer for overdue paymentQuestions 24-26 are based on passage 224. A. Bank card business. B. Bank card fraud.C. Technologies used in bank.D. International card fraud.25. A. 680 million dollars B. 860 million dollarsC. 680 billion dollarsD. 860 billion dollars26. A. It's the same over the 10-year period. B. It's getting worse over the 10-year period.C. It's getting better over the 10-year period.D. There is no way to solve the problem.Questions 27-30 are based on Passage 327. A. a contractual agreement between the banker and the client.B. The creditor-debtor relationship.C. The principal-agent relationship.D. all of above28. A. Those who borrow funds from the bank.B. Those who deposit money with the bank.C. Those who have business dealing with the bank.D. Those who are the customers of the bank.29. A. It acts as an agent to do whatever the customer requires.B. It acts as an agent to provide all kinds of services.C. It acts as an agent to offer many kinds of banking and financial services.D. It acts as an agent to sell the customer's products.30. A. Payroll management. B. Factoring service.C. Financial management.D. Investment advices.Part two ReadingSection One (10%)31. Basle Accord issued in 1988 divides the capital of a bank into _______.A. tier one and tier twoB. pass and special mentionC. outstanding and excellentD. standard and substandard32. The 'C' in CAMELS system refers to _________.A. capacityB. currencyC. capitalD. capability33. The difference between the buying rate and selling rate is known as the ________.A. spreadB. premiumC. discounttD. par34. The economic resources of a business are called________.A. liabilityB. assetC. owner's equityD. expenses35. which item is not a major section in statement of cash flows _________.A. operating activityB. financing activityC. repairing activiyD. investment activity36. Working capital is __________.A. owner's equity less liabilityB. current asset less current liabilityC. asset plus current liabilityD. long-term loan less current asset37. In real estate loan, maximum amount of which is _______ of the property.A. 50%B. 60%C. 70%D. 80%38. ___ is a financial market in which securities that have been previously issued can be resold.A. A primary marketB. A secondary marketC. An issuing marketD. The capital market.39. Under the transferred letter of credit, _________is the account party.A. buyerB. middle manC. sellerD. bank40. As in business accounting, the balance of payments records increases inassets and decreases in liabilities as ____, and decreases in assets and increases in liabilities as ____.A. debit; creditB. debits; creditsC. credit; debitD. credits; detitsSection Two (10%)Passage OneBanks are __41____lenders to business and consumer finance companiesunder line of credit arrangements. Finance companies are an anomaly in that they permanently rely on__42____. They satisfy the rest period requirementsof line of credit borrowing _43_____rotating from one bank to another,_44_____one bank's loan with loan proceeds from other banks. Large finance companies ___45_______significantly to commercial paper in recent years and have dramatically reduced their reliance on bank loans.41. A. major B. minor C. key D. important42. A. short-term lendings B. long-term lendingsC. short-term borrowingsD. long-term borrowings43. A. with B. at C. on D. by44. A. paying for B. paying off C. paying down D. paying45. A. have changed B. changed C. have shifted D. shiftedPassage TwoHowever, investors expect the finance companies to have bank creditlines___46______ their issues of commercial paper derived from a firm's_47_______cash flows, primarily earnings. Loan proceeds are generally usedfor permanent increases in___48______or for fixed-asset purchases. In a pure term loan, the proceeds are disbursed all at once or within a short periodof time ___49______closing the loan agreement. Term loans may be secured or unsecured, depending on the purpose of the borrowing. In reality, term loans provide intermediate-term credit; maturities are usually limited to__50_____and are mostly in the two to five-year range.46. A. in support of B. in support C. in order D. in order that47. A. flowing B. making C. doing D.operating48. A. working capital B. working money C. flowing capital D. working money49. A. before B. after C. prior to D. around50. A. 5 years B. 7 years C. 10 years D. 20yearsSection Three (10%)Passage OneThe primary justification for banking supervision is to limit the risk of loss to depositors, and by so doing to maintain public confidence in banks. And while supervision naturally focuses on the individual bank, supervisors must also be alert to the possibility that problems in one institution may have either, systemic repercussions on others, or on the integrity of the payments system.Although supervisors need to have some understanding of the markets and the business environment in which banks operate, they cannot be expected to know as much as the banks themselves about commercial realities of banking. Anyway, it is not the supervisor's role to make the commercial decisionsthat are the prerogative of bank management. Rather, the supervisor monitors and evaluates the overall strategies, policies and performance of the bank----where appropriate reference to specific legal or prudential criteria-----and reaches a view as to the soundness of the bank and the competence of those running it.51. Supervisors have the obligation to save a failing bank.A. RightB. WrongC. Doesn't say52. Supervisors usually pay more attention to the individual bank.A. RightB. WrongC. Doesn't say53. A sound bank will not suffer from the bankruptcy of other unrelated banks.A. RightB. WrongC. Doesn't say54. Supervisors have the right to make decisions on commercial operation of supervised banks.A. RightB. WrongC. Doesn't say55. Supervisors should use the same criteria to evaluate the performance ofthe supervised banks.A. RightB. WrongC. Doesn't say56. Supervisors need not know too much about the commercial markets andbusiness environment.A. RightB. WrongC. Doesn't sayPassage TwoIt is important to note that there are limitations on an externalexpert's authority that reflect the distinctions between an independent contractor/consultant and an employee. For example, a consultant under contract with the Reserve Bank has the authority to make recommendations, give opinions, and provide analysis to the Reserve Bank only within the scope of the work outlined in the consulting contract. A consultant does not have policy, managerial, or decision-making authority, and may not makefinal decisions. When participating with an examination team on anexamination or inspection, the consultant must report to a designated employee such as the examiner-in-charge, and may not serve as an examiner-in-charge, or other Reserve Bank representative being present. The consultant may, however, independently perform data-gathering functions, such as interviewing bank personnel or attending meetings to collect information to complete his or her work assignment. These and other provisions are outlined in Uniform Documents and Guidance to be provided to the consultant.57. External experts can not be an examiner-in-charge when participatewithin examination team on an examination or inspection.A. RightB. WrongC. Doesn't say58. An external consultant may not attend a meeting with a supervisedinstitution to present findings or conclusions.A. RightB. WrongC. Doesn't say59. An external consultant may have no authority on making a decision.A. RightB. WrongC. Doesn't say60. An external consultant may work independently sometimes.A. RightB. WrongC. Doesn't saySection Four (20%)Passage OneCapital is at the top of any bank supervisor's list. The most basic form of capital is equity capital, which is the shareholder's financial interest or net worth. Equity capital serves several purposes: it provides a permanent source of revenue for the shareholders and funding for the bank;it is available to bear risk and absorb losses; it provides a base for further growth; and it gives the shareholders reason to ensure that the bank is managed in a safe and sound manner. Minimum capital adequacy ratios are necessary to reduce the risk of loss to depositors, creditors and other stockholders of the bank and to help supervisors pursue the overallstability of the banking industry.The Basle Committee's "Core Principles for Effective Banking Supervision" requires that supervisors set prudent and appropriate minimum capital adequacy requirements and encourage banks to operate with capital in excess of the minimum. When it appears appropriate due to the particularrisk profile, uncertainties regarding the asset quality, risk concentrations or other adverse characteristics of a bank's financial condition, considerations of requiring higher than minimum capital ratios are encouraged. If a bank's ratio falls below the minimum, banking supervisors will act to ensure that it has realistic plans to restore the minimum in a timely fashion, or may consider putting additional restrictions on thebank's operations.61. How does the bank supervisor concern the capital of a commercial bankA. Bank supervisor puts the capital to the most important place of his concerns.B. Bank supervisor cares less about the capital of a commercial bank.C. Bank supervisor lists the capital in the first line of his notebook.D. Bank supervisor does not concern the capital too much.62. Which is NOT true about equity capital of a bankA. It can bring income for its shareholders.B. It can provide financial support to a bank.C. It can improve the development of a bank.D. It cannot indicate whether a bank is managed in a safe or sound manner.63. What's the use of minimum capital adequacy ratio for a bank The ratio is used _________.A. to measure whether a bank is managed in a safe way.B. to reduce risks to depositors and creditors of a bank.C. to help supervisors pursue the stability of bankingD. all of the above64. Supervisors usually encourage commercial banks to operate with capital__________ the minimum standard.A. aboveB. belowC. withinD. equal to65. This passage tells us about the importance of ___.A. capital adequacyB. minimum capital ratioC. equity capitalD. Core Principles for Effective Banking SupervisionPassage TwoBanks like to use hard assets such as buildings, motor vehicles, or equipment as collateral against loans. They will loan against receivables and inventory, but, especially in the case of smaller businesses, tend to heavily discount the protection these assets offer. They are afraid the inventory and receivables will be converted to cash in order to cover operating losses if the business experiences any financial difficulties.While banks like the ultimate protection of hard assets, they also want to feel that there is little chance that the business, or the bank, will have to call upon these assets to pay off the loan. Banks don't care whether or not your business has sky-high profit potential. They are only interested in the business' ability to cover the principle and interest payments.In making a proposal for a loan, the bank will want to see all of your recent tax returns, financial statements, and cash flow projections. They will also want to know how much you would like to borrow. And, if yours is a small business, it will expect you to conduct all of your business banking activities through its institution.66. Bank will loan against receivables and inventory ________.A. because receivables is small valueB. because the bank don't think inventory is usefulC. because inventory and receivables might be converted to cash in order to cover operating losses if the business experiences any financial difficultiesD. other reasons67. Do banks care whether or not your business has sky-high profit potential __________.A. Yes, they doB. No, they don'tC. Yes, they do, for sky-high profit potential means the borrower repay on due dayD. Sometimes they do, but sometimes they don't68. In making a proposal for a loan, the bank will not consider of its customer. __________A. all of recent tax returnsB. financial statementsC. cash flow projectionsD. long-term planning69. Banks care only __________.A. interestB. the business' abilityC. principalD. money70. Banks are the ______ financing vehicle, other than owner's savings for small businesses.A. firstB. secondC. primaryD. secondaryPassage ThreeThe borrowing customer has to disclose to his banker the object of the borrowing. The bank must consider carefully whether the credit is most suited to the borrower's need. The bank will then assess whether the loan is to be used in any illegal activity or for speculative purposes. Most banks tend to decline loan proposals which are highly speculative, because the banker expects that the loan would generate sufficient profit and cash-flow.In order to make the loan application successful, a customer is normally required to submit detailed financial statements that will substantiate his capability to generate adequate funds to repay the loan. The statements submitted by the customer are income statement, balance sheet and projected growth of the business. The banker will then review and analyze the real financial position of the borrower so far as repayment capability is concerned.The amount of the loan the customer requests depends on his business capacity. In order to determine the precise amount to be borrowed, the banker may examine the customer's financial statements of assets and liabilities. These statements, in principle, should provide the banker with some indications of the customer's financial position. The bank will examine this information in determining the maximum to be made available to thecustomer. In practice, a bank should never lend a customer more than a quarter of his own resources or financial assets.The term of the loan is an essential factor in assessing credit risk. The longer the term of the loan, the higher the risk exposure due to the chance of unfavorable long-term economic and political changes. In this respect the bank may tailor a loan repayment schedule in accordance with the customer's financial planning and any possible risk.If a bank decides to provide long-term loans to customers in the international market, it should conduct a thorough and explicit “country-risk” assessment in order to pr oduce some quantitative yardstick. The country-risk assessment should provide useful information about a country's risk grading as far as lending is concerned.71. The bank will refuse the loan request when the loan is found to be used _________.A. in any illegal activityB. as working capitalC. for speculative purposesD. both A and C72. If the loan proposal is not likely _________ to meet the repaymentschedule, the loan is unlikely to be approved.A. to generate sufficient profitB. to create more chances of employmentC. to produce enough finished goodsD. to help the business repay debts73. which of the following is the necessary item considered by the bankerwhen the amount Of the loan is decidedA. The borrower's application.B. The borrower's business capacity.C. The borrower's financial statements.D. The borrower's legal activity.74. The country-risk assessment of lending should provide useful information aboutA. a country's economic environment.B. the potential political risk.C. a country's risk grading.D. identification of the customer in that country.75. How much money should a bank lend to a customer according to the lending principlesA. Never more than a half of his own resources or financial assets.B. Never more than one third of his own resources or financial assets.C. Never more than a quarter of his own resources or financial assets.D. Never more than one and a half of his own resources or financial assets.Passage FourThe introduction of floating rates of exchange has substantiallyincreased the demand by international traders and investors for forwardcover to protect themselves against extreme fluctuations. Since it isusually difficult for them to pinpoint the exact date on which the paymentwill be required or the earning will be received, banks are often calledupon to provide option forward contracts. It should be made clear that the option granted by the bank to its customers is an option only to the date of delivery within the contracted period and that such contract must besatisfied by the last date of the option period. The foremost considerationfor the bank in pricing an option forward contract must be that ofprotecting it against the possibility that the delivery will be called forat the most inopportune time during the option period. In the case of a'buyer's option', where forwards are dealt at a discount, the bank (the seller) must assume that the delivery will be taken on the first day of the option, so spot rate will be quoted and no discount will be allowed. Should the forward rate be at a premium, the bank should assume that the deliverywill not be made until the last date allowable under the terms of the option forward contract, so the forward price will be the sum of the spot rate plus the corresponding premium. In the case of a 'seller's option' contract, the bank will be the buyer the opposite should be exactly assumed. In both cases, the bank must allow the smallest discount or charge the highest premium consistent with market rates for its protection.76. International traders and investors use forward cover to protect themselves from ________.A. fixed rateB. floating rateC. forward contractD. option contract77. You can use option forward contracts to choose favorite _________ for yourself.A. dateB. priceC. currencyD. customer78. In the bank's eyes the most important factor which should be payattention to is ___________ in pricing forward contract.A. the customerB. the sum of the contractC. the currencyD. delivery at the most inopportune time79. In the case of a 'buyer's option', if forwards are dealt at a discount,the customer can deliver on ________ in his favor.A. the first dayB. the second dayC. the last dayD. any day80. In the case of a 'buyer's option', if forwards are dealt at a premium,the customer can deliver on _________ in his favour.A. the first dayB. the second dayC. the last dayD. any dayPart Three WritingSection One (5%)Directions: Describe the procedures for forfaiting, in the order of the numbers given in the chart. Write your answer on the blank space.1.2.3.4.5.6.7.8.9.Section Two (5%)Directions: Translate the following sentences into Chinese. Write your translation on the blank space.1. Asymmetric information is present in loan markets because lenders have less information about the investment opportunities and activities of borrowers than borrowers do. This situation leads to two information-producing activities by banks and other financial institutions, screening and monitoring. Indeed, Walter Wriston, a former head of Citicorp, the largest bank corporation in the United States, was often quoted as stating that the business of banking is the production of information.Section Three(10%)Direction: Write a letter according to the following outlines. Remember towrite in letter format.我行收到米兰银行来信称，你行信用证下我行的议付不能偿付，理由是他们的授权偿付只限于不迟于2003年2月28日以前的付款。
金融英语单选题练习
金融英语：FECT-1单选题（一）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 ______.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 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 1.6336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.D（二）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 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.C（三）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 are 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 trading 19. 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（四）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.A。
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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? ______.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 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 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 1.6336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.D。