金融专业英语证书考试FECT单选练习100题-2
金融专业英语证书考试FECT单选练习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。
金融专业英语证书考试FECT单选练习100题-2
金融专业英语证书考试FECT单选练习100题-21. Usually the low interest rate currency trades at a ______ to the high interest rate currency in the forward market.A. premiumB. parC. discountD. bar2. Which of the following statements about standby letters of credit is true? ______.A. They can serve as a guarantee to a buyer against a seller defaultingB. They are contrary to the general rule that letters of credit may only be used for the actual movement of goodsC. They are unlike a tender (or other) bond in their legal standing and method of operationD. They are unlike a tender bond with its fixed expiry date3. The most liquid of all assets is ______.A. the stock of commercial banksB. M 1C. intelligenceD. the debt of major corporations4. Beta and standard deviation differ as risk measures in that beta measures ______.A. only unsystematic risk, while standard deviation measures total riskB. only systematic risk, while standard deviation measures total riskC. both systematic and unsystematic risk, while standard deviation measures only unsystematic riskD. both systematic and unsystematic risk, while standard deviation measures only systematic risk5. What information would you find in a statement of cash flows that you would not be able to get from the other two primary financial statements? ______.A. Cash provided by or used in financing activitiesB. Cash balance at the end of the periodC. Total liabilities due to creditors at the end of the periodD. Net income6. An analyst estimates that a stock has the following probabilities of returnThe expected return of the stock is ______.A. 7.8% C.11.7%D. 13.0%B. 11.4%7. According to the rules of debit and credit for balance sheet accounts ______.A. increases in asset, liability, and owner's equity accounts are recorded by debitsB. decreases in asset and liability accounts are recorded by creditsC. increases in asset and owner's equity accounts are recorded by debitsD. decreases in liability and owner's equity accounts are recorded by debits 2658. Individuals will accept the medium of exchange in return for goods and services only if they are confident that ______.A. the inflation rate is zeroB. it possesses intrinsic valueC. they can pass it on to othersD. they can exchange it for gold9. When a country's currency appreciates, the country's goods abroad become ______ and foreign goods in that country become ______.A. cheaper... more expensiveB. more expensive... cheaperC. cheaper...cheaperD. more expensive... more expensive10. A US company is bidding for a contract in China. Its Chinese customer asks for aperformance bond. What is the most likely course of action? ______.A. It asks its bank to issue a tender bond which can be converted into a performance bondB. It gives up its bidC. It consults its bank about issuing a standby letter of creditD. It asks its bank to issue a performance bond11. ABC Co. Ltd. has a $3 500 account receivable from XYZ Store. On March 20, XYZ makes a partial payment of $2 100 to ABC. The journal entry made on Mdrch 20 by ABC to record this transaction includes ______.A. a debit to the cash received account of $2 100B. a credit to the Accounts Receivable account of $2 100C. a debit to the Cash account of $1 400D. a debit to the Accounts Receivable account of $1 40012. Intervention in the foreign exchange market means the government ______.A. restricts individuals from buying and selling foreign exchangeB. restricts the importation of certain goodsC. or central bank buys or sells foreign exchangeD. devalues the currency in the foreign-exchange market13. Which of the following is not a form of countertrade? ______.A. CounterpurchaseB. Buy-backC. OffsetD. Balance trade14. A credit to a revenue account ______.A. decreases revenuesB. increases equityC. decreases equityD. increases assets15. If the government guaranteed that anyone wishing a job would be provided one, the likely result would be ______.A. massive layoffsB. an increase in the money supplyC. an increase in inflationary expectationsD. the development of a barter system16. Given $100 000 to invest, what is the expected risk premium in dollars of investing in equities versus risk-free T-bills(U.S. Treasury bills) based on theA. $20000B. $18000C. $15000D. $1300017. Economists assume that most people take risks ______.A. because doing so is excitingB. only when they have no riskless alternativeC. very infrequentlyD. if they are compensated for taking the risks18. The Phillips Curve shows the relationship between ______.A. aggregate demand and aggregate supplyB. interest rates and inflationC. recessions and boomsD. inflation and the unemployment rate19. In a fixed exchange rate system, speculative selling of a currency is based on anticipation of .A. appreciationB. devaluationC. a foreign trade surplusD. interest rate increase20. A collecting bank is employed by ______.A. the principalB. the remitting bankC. the drawerD. the drawee, who is its customer21. The following statements describing net income are all correct except that ______.A. net income is computed in the income statement, appears in the statement of owner's equity, and increases owner's equity in the balance sheetB. net income is equal to revenues minus expensesC. net income is computed in the income statement, appears in the statement of owner's equity, and increases the amount of cash shown in the balance sheetD. net income can be determined using the account balances appearing in an adjusted trial balance22. A strong dollar encourages ______.A. travel to theUnited States by foreignersB. purchase of American goods by foreignersC. Americans to travel abroadD. Americans to save dollars23. In what circumstances would the beneficiary of a confirmed documentary credit not receive payment? ______.A. Failure of the applicantB. Failure of the issuing bankC. Failure to fulfil the credit termsD. Failure to fulfil the commercial contract24. The balance in the owner's capital account of ABC Co. Ltd. at the beginning of the year was $65 000. During the year, the company earned revenue of $430 000 and incurred expenses of $360 000, the owner withdrew $50 000 in assets, and the balance of the Cash account increased by $10 000. At year-end, the company's net income and the year-end balance in the owner's capital account were, respectively .A. $20 000 and $95 000B. $70 000 and $95 000C. $70 000 and $85 000D. $60 000 and $75 00025. Assume the inflation rate is expected to be 5 percent and the unemployment rate is 8 percent. If workers wish to get a 2 percent real wage increase, they should bargain for a money wage increase of______.A. 3 percentB. 5 percentC. 7 percentD. 13 percent26. Which statement about portfolio diversification is correct? .A. Proper diversification can reduce or eliminate systematic riskB. As more securities are added to a portfolio, total risk typically would be expected to fall at a decreasing rateC. The risk-reducing benefits of diversification do not occur meaningfully until at least 30 individual securities are included in the portfolioD. Diversification reduces the portfolio's expected return because it reduces a portfolio's total risk27. Your customer is the applicant for a documentary credit. Which of the followingpoints would appear to be illogical if they appeared on the application form? ______.A. Invoice price shown as FOB, bills of lading to be marked freight paidB. Last date for shipment one week before expiry dateC. Invoice price shown as C&F, but no insurance document requestedD. No mention of the latest date of shipment28. Portfolio theory as described by Markowitz is most concerned with ______.A. the effect of diversification on portfolio riskB. B. the elimination of systematic riskC. active portfolio management to enhance returnD. the identification of unsystematic risk29. Commercial bank deposits with the central bank are part of the bank's______.A. net worthB. demand depositsC. loan portfolioD. reserves30. Foreign trade can be conducted on the following terms except for ______.A. open accountB. documentary collectionC. documentary creditsD. public bonds31。
金融英语单选测题1
金融英语单选测题1金融英语单选测题—FECT（1）1. Which of the following is not a function of money? ___D___.A. To act as a medium of exchangeB. To act as a unit of accountC. To act as a store of valueD. To provide a double coincidence of wantsE. To act as a means of payment2. The price in the foreign exchange market is called ______.A. the trade surplusB. the exchange rateC. the money priceD. the currency rate3. Market risk refers to the risk of______.A. financial prices fluctuationsB. defaultC. fraudD. deferred payments4. Which of the following is not among the generally accepted accounting principles? ___ ___.A. Cash basisB. PrudenceC. ConsistencyD. Going concernE. Money measurement.5. What is a documentary letter of credit? ______.A. A conditional bank undertaking to pay an exporter on production of stipulated documen tationB. A method of lending against documentary securityC. An international trade settlement system biased in favour of importersD. All of the above6. Holding a group of assets reduces risk as long as the assets ______.A. are perfectly correlatedB. are completely independentC. do not have precisely the same pattern of returnsD. have a correlation coefficient greater than one7. An amount, payable in money goods, or service, owed bya business to a creditor, is k nown as a/an .A. liabilityB. debtC. equityD. asset8. What function is money serving when you buy a ticket toa movie? ______.A. store of valueB. a medium of exchangeC. transaction demandD. a unit of account9. If foreigners expect that the future price of sterling 纯银will be lower, the ___c___.A. supply of sterling will increase, demand for sterling will fall, and the exchange rate will fallB. supply of sterling will increase, demand for sterling will rise, and the exchange rate may or may not increaseC. supply of sterling will fall, demand for sterling will increase,and the exchange rate will riseD. supply of sterling will fall, demand for sterling will fall, and the exchange rate may or may not fall。
2000年金融英语考试fect初级真题
2000年金融英语考试fect初级真题FECT 初级 2000 年真题及答案Reading Part TwoSection One (10%)Direction：There are ten statements in this section. For each statement there are four choic es marked A, B, C, and D. You should choose the best answer and mark the corresponding lette r on the ANSWER SHEET by drawing a single line through the center.31. Since April 1994, the RMB exchange rate has been determined by .A. the China foreign Exchange Trading SystemB. the People’s Bank of ChinaC. supply and demand as well as trading situations in the China Foreign Exchange Swap MarketD. supply and demand as well as trading situations in the unified interbank foreign exchange market32. If near money is to be used directly to purchase goods or services,it must be .A. permitted by the business companyB. endorsed by the holderC. drawn from a bank firstD. converted into cash or sight deposit33. Which of the following is not one of the function of money?A. Medium of exchangeB. Store of valueC. Financial assetsD. Standard for deferred payment34. Unless otherwise stated in the letter of credit, banks will not accept presente d by the beneficiary.A. the open coverB. the cover noteC. the insurance certificateD. the insurance policy35. Factoring provides the following services except .A. maintenance of the sales ledgerB. collection of accounts receivableC. 100% non-recourse finance to the seller despite commercial disputes between the seller and the buyerD. credit risk protection on the buyer36. When the exported goods are insured under an open cover agreement, is the most appropriate document as evidence of insurance.A. an open policyB. an insurance certificateC. an insurance policyD. an inspection certificate37. Advances to the importer can be given in the following ways except .A. limits for issuing letters of creditB. inward bills receivableC. packing loansD. delivery against the bank guarantee38. As far as the beneficiary is concerned the letter of credit which is available byis the least favourable.A. negotiationB. acceptanceC. sight paymentD. deferred payment39. Deposits, taken within the territory of the People’s republic of China bya foreign fin ancial institution shall not exceed percent of its total assets.A. 20B. 30C. 40D. 6040. “Pay Chen RMB10,000 on the date of his marriage.” This is .A. a bill of exchangeB. a chequeC. a promissory noteD. an orderSection Two (10%)Directions：there are 10 blanks in the following passages. For each blank there are four cho ices marked A, B, C and D. You should choose the best answer and mark the corresponding lett er on the ANSWER SHEET by drawing a single line through the center.Passage OneCommercial banks are business firms; like all firms, they strive to earn a profit. The objec t of commercial bank management is therefore to profits while maintaining a very lo w risk of becoming . To remain solvent, a commercial bank must take precautions to ensure that the value of its assets the value of its liabilities at all times. If at any time losses from securities,44 loans, or other investments force the value of the bank’s assets 45 the valu e of its liabilities, the bank becomes insolvent.41. A. minimize B. maximize C. control D. manage42. A insolvent B. solvent C. default D. liquidation43. A equals B contracts C exceeds D lags44. A fault B defaulted C liquid D speculated45. A above B under C beyond D belowPassage TwoIn the foreign exchange market, which is made up of banks’traders and brokers, prices46 every minute to supply and demand. For safety’s sake, a branch will get a rate from their traders for a big transaction. This process would be too cumbersome, however, for every small transaction. Therefore the traders give their branches lists of exchange ra tes 48 they may buy and sell notes and payments in the main currencies.Whenever a bank in Britain makes a payment in foreign currency, or makes a payment in sterli ng to a non-resident, the payment has first to under British exchange control regula tions. The bank itself can usually authorize the payment after seeing a document such as an invoice to show that the payment is due; but cases borrowing and lending have to be referred to the Bank of England.46. A alter B vary C turn D convert47. A in response B respondent C responding D answering48. A of which B on which C in which D at which49. A authorizing B authorize C be authorized D have been authorized50. A involving B involve C will involve D being involvedSection Three (10%)Directions：Read the following passages, and determine whether the sentences are “Right”o r “Wrong”. If there is not enough information to answer “Right”or “Wrong”, choose “D oesn’t say”. Then mark the corresponding letter on the ANSWER SHEET by drawing a single li ne through the center.Passage 1Liquidity is a measure of how quickly an item may be converted to cash. Therefore, cash is t he most liquid asset. Account receivable is a relatively liquid asset because the business e xpects to collect the amount in cash in the near future. Supplies are less liquid than accou nts receivable. Users of financial statements are interested in liquidity because business d ifficulties often arise owing to shortage of cash. How quickly can the business convert an a sset to cash and pay a debt? How soon must a liability be paid? These are questions of liqui dity.51. Long-term assets are all assets other than current assets. A right B wrong C Doesn’t say52. Supplies are less liquid than accounts receivable, and furniture and buildings are even less so.A RightB WrongC Doesn’t53. People are interested in liabilities on the balance sheet because it is relatively liqui d.A RightB wrongC Doesn’t sayPassage 2Whereas the money markets provide very short-term loans, the capital market takes account of medium and long-term loans. It serves the needs of industry and commerce, government and lo cal authorities. Private sector firms borrow their working capital (current assets minus cur rent liabilities) from the money market, which used to be mainly via commercial banks; the r ole of banks as middlemen has now diminished, even for the working capital requirements. Pri vate sector firms raise their fixed capital by the issue of shares or commercial paper bonds. Government and local authorities borrow medium and long-term capital by issuing gilt-edged stocks and bands. The main market place for lending and borrowing medium and long-term capit al in the UK is the Stock Exchange in London.54. An industrial corporate can meet its financial needs by seeking funds from the capital m arkets.A RightB WrongC Doesn’t say55. Nowadays a private business usually obtains its working capital through a commercial ban k.A RightB WrongC Doesn’t say56. In the UK commercial banks often raise funds by issuing bands and stocks. A Right B Wrong C Doesn’t sayPassage 3A commercial bank shall formulate its business rules, establish and improve its business man agement, the system of cash control and its security system in accordance with the stipulati ons of the People’s Bank of China.A commercial bank shall establish and improve its systems of examining and checking deposits, loans settlements and bad and doubtful accounts. The PBC can exercise examination of a comm ercial bank at any time in accordance with the relevant provisions. The personnel in charge of the examination and supervision should produce their legitimate at the time of conducting examination and supervision.A commercial bank shall provide financial financial accounting information, business contrac ts and other information about its business and management at the request of the People’sB ank of China.A commercial bank is subject to the audit control by the auditing authorities in accordancewith the audit law and regulations.57. The PBC can exercise examination of a commercial bank at any time. A Right B WrongC Doesn’t say58. A commercial bank shall establish and improve its system of internal control according t o law.A RightB WrongC Doesn’t say59. A member staff of the PBC should present his legitimate certificate for on-site examinat ion.A RightB WrongC Doesn’t say60. The auditing authorities can not exercise the audit control over a commercial bank. A Right B Wrong C Doesn’t say Section Four (20%)Direction ：There are 4 passages in this section. Each passage is followed by some questions or unfinished statements. For each of them there are four choices marked A, B, C and D. You should choose the best choice and mark the corresponding letter on the ANSWER SHEET by drawi ng a single line through the center.Passage 1Qualified Endorsement: when the words “without recourse”or words with similar meaning are used part of the endorsement, such endorsement is referred to as qualified endorsement. The purpose of this type of endorsement is to limit the endorser’s liability. The qualified end orsee,however, may look to all other parties prior to the qualified endorser. Under the UCP, the term “signature”also includes marks and thumbprints and printed, typed, or stamped s ignatures are acceptable in addition to written ones. This rule also applies to endorsements. In the United States, the endorsement on an instrument need not necessarily be applied by the previous holder. Banks frequently provide this by placing a rubber-stamped endorsement on deposited check, typically using words as “credited to the account of within named payee”and guaranting the absence of the payee’s persona; signature and endorsement.61. Qualified endorsement is one .A. only with “without recourse”on it, words with similar meaning are not considered as qu alified endorsement.B. where the holder merely writes his signature on the bank of the instrument and thereafter it becomes payable to the bearer.C. with “without recorse”or words with similar meaning as part of the endorsement.D. which prohibits the further negotiation of the instrument or which expresses that it is a mere authority to deal with instrument as thereby directed.62. Qualified endorsement is used .A. when the endorser wants to pass the full title to the endorseeB. to inform the importer’s bank to negotiateC. when the endorser wants to strengthen the liability of the endorseeD. to limit the endorser’s liability63. According to the UCP, the term “signature”includes .A. marks and thumbprints, and printed, typed, or stamped signatures are acceptable in additi on to written onesB. marks and thumbprints, and printed, typed, or stamped signatures are not acceptable in addition to written onesC. marks and thumprints, but printed, typed, or stamped signatures are not acceptableD. marks and thumbprints only64. The qualified endorsee may look to all other parties . A. prior to the qualified endorserB. prior to the qualified endorseeC. prior to the immediate endorserD. prior to the immediate endorsee65. Endorsement can be acceptable .A. only when it is signed personally by the previous holderB. if it is signed, stamped or markedC. only when there is a rubber-stamped signature on itD. if there are thumbprints on itPaggage2Whether sending or receiving payments across borders, banks often charge too much or take to o long-or both. One study last year found that European banks overcharged for over a third o f urgent transfers. Thankfully, new payments networks are starting to offer quick, reliable and more competitively priced service. Given time, these could pose a threat to traditional bilateral(or correspondent) agreements between individual banks and to the Society for World wide Interbank Financial Telecommunication (SWIFT), the global network that processes most l arge international payments.One upstart gaining credibility is the Inter-bank On-line System(IBOS), which was founded in1997 by Britain’s Royal Bank of Scotland and Spain’s Banco Santander.What is the system’s attraction? The answer is that instead of taking many days and bits of paper, the form of correspondent banking, account-account payment in IBOS can be completed o pening an expensive international branch network. The system’s executives like to refer to its members-now 11 banks from nine countries-as a single “virtual bank”. Charles Mallis of Chase, which is merging with Chemical, a big American rival, says that this ability to “sha re”branches was a big attraction to the bank, even though it already has the world’s larg est correspondent network.IBOS bills themselves act as more than simply a quick payment service. It wants to develop i nto a platform for all sorts of cash-management products, particularly for multinationals. S ean Verity, its chief executive, says that there are also plans to license the system’s tec hnology, so that banks anywhere can use it as a platform for their own independent payment a ssociations. And its members think that its advanced technology could help them to speed up commerce-payments using smart cards, electronic cash and so on.IBOS claims that it is not a direct threat to SWIFT because the two are fundamentally differ ent in several ways. For instance, the former is a decentralized cash management technology which links different banks’branches directly, whereas all traffic for its bigger rival mu st pass through a central hub in Brussels.66.International money transfer is often troubled with .A. slow paymentB. expensive chargesC. both A and BD. none of the above67. As a newly-founded payment system, IBOS is welcomed mainly for its . A. high-tech platformB. cash-management technologyC. large correspondent networkD. speedy transfer of payment68. Another reason why some banks joined IBOS is that . A. they can share their branchesB. they can share their correspondentsC. branches of different banks can transfer money directlyD. all of the above69. According to the passage, which statement is wrong?A. IBOS may help to speed up commerce-payment using smart cards, electronic cash and so on.B. IBOS is a payment system for fast and cheap money transfer.C. IBOS ienables the member banks to create better cash management products than smart cards, electronic cash and so on.D. With IBOS’technology, the bank’s money transfer can be more globalized.70. One of the main differences between IBOS and SWIFT is that_ .A. SWIFT is a telecommunication system for global banking, while IBOS is merely a payment sy stemB. The business volume handled by SWIFT is much bigger than that of IBOSC. To use IBOS makes a bank more decentralizedD. All information processed by SWIFT has to go through its center, while under IBOS system two end-users can contact each other directlyPassage 3Most commercial letters of credit are documentary, meaning that certain documents must be in cluded with any drafts drawn under the terms of the credit. Documents required usually inclu de an order bill of lading, a commercial invoice, and any of the following: consular invoice, insurance certificate or policy, certificate of origin, weight list, packing list.Letters of credit without the requirement for presentation of shipping documents or commerci al documents are called clean credits, and are similar to, although not legally identical wi th unconditional first demand guarantees. These credits are extremely flexible and may be us ed in an almost unlimited variety of situations, from construction bond to the finance of ma rgin requirements on future markets. Two kinds of clean letters of credit which are relative of the documentary letters of credit are of interest.The first is the standby letter of credit, in which the issuing bank undertakes to pay if th e applicant does not carry out his obligations. Documents normally called for are evidences of the underlying transaction, such as non-negotiable copies of bills of lading , or third p arty’s certificate certifying the non-performance of an obligation of the applicant, or the beneficiary’s certificate of non-payment by the applicant. The second is the indemnity for minor discrepancies in the documents given to the shipping company so that issuing bank may make payment or the shipping company may release goods to the applicant.71. According to the passage, a documentary letter of credit is one which .A. includes any draftsB. includes drafts accompanied by invoices, bills of lading and other documentsC. is accompanied by invoices, bills of lading and other documentsD. is accompanied by drafts as well as the insurance policy and commercial invoices72. A clean credit is one which . A. calls for no presentation of itB. is used instead of first demand guaranteeC. is used without presentation of any documentsD. is the same as an unconditional first demand guarantee73. Under a standby letter of credit, .A. evidence of the underlying transaction should be field firstB. the applicant may be exempted from any liabilitiesC. the issuing bank has to pay the beneficiaryD. the issuing bank should pay when the applicant fails to fulfill his obligations74. The indemnity may be .A. used whenever there are discrepancies in the documentsB. presented when the shipping company intends to release the goods to the applicantC. presented to the issuing bank of the L/C under which there are unimportant discrepancies in the documentsD. used in lieu of shipping documents75.Standby letters of credit are relatives of documentary letters of credit because_ _. A. they are very similar to ordinary letters of credit in operationB. the issuing banks undertake to payC. they are normally accompanied by evidences of transactions such as non-negotiable copies of B/L or other documentsD. call for all kinds of normal documentsPassage 4Acceptance of a bill of exchange is an unconditional undertaking to pay the bill on maturity. The drawee should not, therefore, when accepting the bill, impose any conditions on payment. Acceptances citing for instance:(a) lesser amount (b) payable at a different date are referr ed to as “unqualified acceptances”and would not be acceptable to the remitting bank.The bill may be accepted payable at a place other than the acceptor’s address, normally at his bank, viz. “accepted payable at Barclays Bank plc…”This practice should be encourage d as the procedure for obtaining payment at maturity is greatly simplified; the bill needs o nly to be presented at the bank counters for payment.The presenting bank is responsible for seeing that the form of the acceptance of a bill of e xchange appears to be complete and correct, but is not responsible for the genuieness of any signature or for the authority of any signatory to sign the acceptance.However, when the drawee is a customer, good banking practice dictates that the signature mu st be checked against the mandate.Strict control must be maintained over an accepted bill, which must not be presented for pay ment at maturity through the post.A bill of exchange is dishonoured when a sight draft is unpaid on presentation or when a ten or draft is unaccepted on presentation or unpaid at maturity.When an inward collection is dishonored the presenting bank must examine the collection orde r to see whether the bill is to be protested. Protesting a bill provides legal evidence of d ishonor acceptable to a court of law.If protest is to be carried out, a Notary Public will personally call upon the drawee/accept or and demand payment or acceptance. If the payment/acceptance is not forthcoming, the Norta ryPublic will draw up a deed of Protest that will give the reasons stated for dishonor. A b ill should be protested within one working day of dishonor, otherwise under the Bills of Exc hange Act 1882(s.51) all signatories are freed from liability on that bill.When a Notary Public is not available, a member of the bank staff can make a formal protest. Two ratepayers resident in the area of the drawee must witness the formal document. This is a valid form of Protest.76. Acceptance of bill of exchange is . A. a promise C. an orderB. a promise under some conditions D. a payment77. When a sight bill of exchange is unpaid, it is . A. unaccepted C.dishonoredB.honored D.accepted78.when an inward collection is dishonored, the bank must make sure whether the bill is to be protested.A. remitting C. confirmingB. collecting D. reimbursing79. Protesting is expensive and must be done within one working day of . A. unacceptance C. paymentB. dishonor D. collection80. A member of the bank staff can make a protest. A. formal C. normalB. valid form D. formal and validPart Three WritingSection One(5%)Directions:Read the following passage and fill in the blanks with its contents. Write your answers on the ANSWER SHEET.As per the terms and conditions of the Contract No. 123, the payment is to be made by a docu mentary credit. Now, at the request of the importer, Mr. Houston & His Son, CITIBANK N.A. he reby issues a documentary credit No. 56789 in favor of China National Chemicals Imp. & Exp. Corp., 56 Dongnanmen street, Beijing, to the extent of USD 56,700.00 on May 23, 1997.On June 1, 1997 the exporter shipped the relative goods and drew a draft on the issuing bank, asking him to pay the credit amount at 60 days after sight of the draft. Mr. Grace Peter, ma nager of the corporation, was authorized to sign the draft.Bill of ExchangeNo.123 ①Dated Exchange for ②At ③ days after sight of this FIRST of Exchange (Second of exchange being unpaid)Pay to the order of ④ The sum of ⑤Drawn under L/C No. ⑥ dated ⑦ Issued by ⑧value received and charged the same amount toTo ⑨⑩Section Two(5%)Directions:Translate the following sentences into Chinese. Write your translation on the AN SWER SHEET.1. I have another thing to trouble you. If we need Renminbi, is our sale of US dollars limit ed to you at your buying rate? I mean, can we sell them elsewhere ata higher price?2. Drafts are usually valid for 6 months. This draft expires on Nov. 10. It is the first ofNovember. I’m not sure whether the draft can reach the paying bank at the maturity date.3. Normally, the title to the goods does not pass to the buyer until the draft is paid or ac cepted by the buyer.4. It is apparent that profits earned will not necessarily take the form of cash, they can b e used for investment in other assets or to reduce liabilities such as debts.5. Traveller’s cheques are in fixed and round amount. So they are convient to be encashed. Section Three(10%)Directions: Write a letter according to the following request. Write your answer on the ANSW ER SHEET.请按信函格式以下列内容给美国纽约甲银行用英语写一封信。
金融英语：FECT单项选择题汇总练习.doc
金融英语：FECT单项选择题汇总练习.doc1. 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 favorof 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 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 ofthe 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 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.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 anddemand 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。
2020年金融英语(FECT)证书考试模拟题2(英语学习).doc
2011年金融英语（FECT）证书考试模拟题2（英语学习）金融英语考试模拟试题40.Incoterms apply ______。
A.only if clearly incorporated into the contract of saleB.to International shipments beyond a certain tonnageC.to international shipments under the Uniform Commercial CodeD.to all international shipments of goods41.Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract？______。
A.Import of goods priced in a foreign currencyB.Import of goods priced in RMBC.Export of goods priced in RMBD.Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract42.Incoterms address ______。
A.the risks of loss between the partiesB.breaches of contractC.ownership rightsD.type of ship used43.Which of the following is or was an example of representative full-bodied money？______。
金融英语证书考试FECT模拟试题-2
金融英语证书考试FECT模拟试题-2(总分100, 考试时间90分钟)SECTION ONE (Compulsory)：Answer all ten questions in this section. Each question carries 1 mark.Multiple-choice questions: from the following four options, select a correct and fill in its labeling the brackets.1.A production function for a firm describes: ()A What should be produced to maximize profit.B What is technologically feasible when the firm produces efficiently.C What revenue is earned from producing efficiently.D What the firm produces with given inputs.该题您未回答:х该问题分值: 2答案:B2.Which of the following is not a characteristic of a competitive industry? ()A There are many firms.B All firms produce homogeneous products, which are substitutable for each other.C There is a fierce price war among rivals.D Firms can enter and exit the industry freely.该题您未回答:х该问题分值: 2答案:C3.The Central Bank in the open market buying and selling of securities is designed to: ()A regulation bond pricesB achieve profit maximizationC regulate money supplyD adjust prices level该题您未回答:х该问题分值: 2答案:C4.What unemployment is formed because of the economic recession? ()A friction unemploymentB structural unemploymentC cyclical unemploymentD natural unemployment该题您未回答:х该问题分值: 2答案:C5.After a long race on a hot day, a runner enjoys her first drink a lot, the second she enjoys less and she declines a third drink. This illustrates the principle of: ()A Increasing marginal utility.B Decreasing marginal utility.C Increasing marginal cost.D Decreasing marginal cost.该题您未回答:х该问题分值: 2答案:B6.On a hot day, the price and the quantity sold of ice creams both increase. This can reflect a: ()A Shift in the demand curve to the right.B Move along the demand curve.C Shift in the demand curve to the left.D Shift in the supply curve to the right.该题您未回答:х该问题分值: 2答案:A7.When a country’s currency appreciates, the country’s goods abroad become ______ and foreign goods in that country become ______.A cheaper... more expensiveB more expensive... cheaperC cheaper...cheaperD more expensive... more expensive该题您未回答:х该问题分值: 2答案:B8.A US company is bidding for a contract in China. Its Chinese customer asks for a performance bond. What is the most likely course of action? ()A It asks its bank to issue a tender bond which can be converted into a performance bondB It gives up its bidC It consults its bank about issuing a standby letter of creditD It asks its bank to issue a performance bond该题您未回答:х该问题分值: 2答案:A9.There is a deficit in the federal budget when: ()A Federal government spending is greater than federal tax revenues.B U.S. imports are greater than U.S. exports.C The total demand for money is greater than the total supply of money.D U.S. imports are smaller than U.S. exports.该题您未回答:х该问题分值: 2答案:A10.Mrs. Jones purchased a 20-year Treasury bond bearing a 12% coupon rate. She purchased the bond at par ($1000). If rates fall to 9% what will be the new price of the bond? ()A $1333B $1500C $750D $900E There will be no change in the price of the bond.该题您未回答:х该问题分值: 2答案:DSECTION TWO(Compulsory)：Answer the questions in this section.Reading Comprehension: (10 points)James Sigmund, CFA, is the Head of International Equity for Pell Global Advisors (PGA). Sigmund is considering investing in the country of Zuflak as part of an emerging market portfolio. Sigmund is aware of the risks in investing in emerging markets and is preparing a valuation report regarding this investment. He estimates that Zuflak government debt would be rated BB, and has gathered the following market information for use in analyzing Zuflak.Local Government Bond Yield = 11.50%U.S. 10 year Treasury Bond Yield = 4.50%U.S. BB rated Corporate Bond Yield = 7.75%Local Inflation Rate = 6.50%U.S. Inflation Rate = 3.00%To assist in his analysis of Zuflak, Sigmund has asked Stefano Testorf, CFA, to estimate a value for Kiani Corporation (Kiani), Oleg Industries (Oleg), and Malik Incorporated (Malik) - the three primary companies domiciled in Zuflak that Sigmund has determined to have adequate liquidity for inclusion in PGA’s client portfolios. Testorf gives Sigmund a rough draft of his report and tells Sigmund that in order to account for country specific emerging market risks; he used a probability-weighted scenarioanalysis to adjust cash flows. Sigmund asks him, “Why didn’t you s imply adjust the discount rate?” Testorf replies with three reasons: Reason 1: The country risk attributable to Zuflak can be diversified away according to modern finance theory, and should not be included in the cost of capital.Reason 2: Companies in emerging markets tend to exhibit wild price swings both up and down, therefore adjusting cash flows is the best way to account for these symmetrical country risks.Reason 3: Although Kiani, Oleg, and Malik are all domiciled in Zuflak, each of these companies will tend to respond differently to country risks. This makes it virtually impossible to adjust the discount rate for country specific risk and come up with an accurate valuation estimate.After careful analysis by Sigmund and his team, Sigmund decides that he wants to have exposure to Zuflak in his international portfolios. He is still unsure however, what the best way would be to establish the exposure. Sigmund discusses his concerns with Steve Solak, another portfolio manager with PGA. Solak suggests that Sigmund consider using a closed-end country fund to invest in Zuflak. Solak hands Sigmund a copy of a note that he had provided to a client listing facts about country-specific closed end funds. The note contained the following statements:Closed-end country funds provide an excellent means to access local foreign markets. Even nations that have restrictions on foreign investment are sometimes accessible using closed-end country funds.Closed-end country funds issue a fixed number of shares and are a great way to diversify a U.S.-dollar stock portfolio because of their low correlation with the U.S. stock market.Sigmund thanks Solak for the information and heads back to his office. As he is leaving, Solak asks him if he would have time later that afternoon to discuss the use of American Depository Receipts (ADRs).11.What is the best estimate of the country risk premium for Zuflak? ()A 0.25%.B 1.50%.C 2.75%.D 6.00%.该题您未回答:х该问题分值: 2答案:ABecause a U.S. denominated local government bond does not exist, the following formula must be used to calculate the country risk premium: Local government bond yield (non–US dollar denominated)- U.S. 10 year T-bond yield- Inflation differential between local country and U.S.- Yield spread between comparably rated U.S. corporate and U.S. T-bond yields= Country Risk PremiumCountry Risk Premium = 11.50 – 4.50 – (6.50-3.00) – (7.75-4.50) = 11.50 – 4.50 – 3.50 – 3.25= 0.25Note that if a U.S. denominated local government bond did exist, we would use that bond in our calculation and would not include the inflation differential.12.To determine a valuation estimate for Oleg, Testorf assumes that local investors require a 5 percent real rate of return on companies with similar risk to Oleg. What is Oleg’s price-to-earnings (P/E) ratio, if the company has an inflation flow-through rate of 65 percent? ()A 13.75.B 5.33.C 3.00.D 21.25该题您未回答:х该问题分值: 2答案:AP0/E1 = 1 / [real required return + (1 – inflation flow-through rate) × inflation rate]= 1 / [0.05 + (1-.65) × 0.065]= 1 / [0.05 + 0.02275]= 1 / 0.07275 = 13.7513.In regard to Testorf’s reasons for incorporating emerging market risk into the valuation of Zuflak by adjusting cash flows rather than adjusting the discount rate, which of the following is TRUE?()A Reasons 1 and 3 support Testorf’s cash flow adjustment, but reason2 does not.B All three of the reasons given support Testorf’s cash flowadjustment.C Reasons 2 and 3 su pport Testorf’s cash flow adjustment, but reason1 does not.D Reason 1 supports Testorf’s cash flow adjustment, but reasons 2and 3 do not.该题您未回答:х该问题分值: 2答案:AAlthough emerging market risk can be incorporated into the valuation process either by adjusting the discount rate (required return), or by adjusting cash flows in a scenario analysis, evidence suggests that country risks can be best captured through cash flow adjustment. The four arguments that support adjustments to cash flow rather than adjusting the discount rate are:Country risks are diversifiable. Modern finance theory states that country risks can be diversified away, and therefore should not be included in the cost of capital. Testorf’s first reason is correct.Companies respond differently to country risk. A general discount rate cannot be applied uniformly to every company valuation in the country because it would not capture the different operating characteristics of the company that could be captured by adjusting the cash flows. Testorf’s third reason is correct.Country risk is one-sided. Emerging markets have a tendency for companies to exhibit one-sided (down only) risk profiles. Therefore, the risks are asymmetrical and adjusting the cash flows best captures these asymmetrical risks. Testorf’s second reason is incorrect.Identifying cash flow effects aids risk management. Managers tend to identify specific factors affecting cash flow and plan to mitigate their risks by adjusting cash flows rather than adjusting the discount rate.14.Due to the high inflation rate of the local country, Testorf calculates the return on invested capital (ROIC) for Kiani by revaluing the company’s fixed assets. In comparing the performance of Z uflak to other local companies, the ROIC calculation should: ()A Exclude goodwill.B Exclude depreciation.C Not revalue fixed assets.D Exclude net operating profit adjusted for taxes.该题您未回答:х该问题分值: 2答案:AWhen calculating ROIC, excluding goodwill is useful for comparing different local companies and evaluating trends. Goodwill can distort the comparison when firms have differing levels of goodwill. ROIC that includes goodwill measures returns generated by the firm’s acquisitions based on the use of its investors’ capital, and is used for determining whether or not the company earned an acceptable rate of return over its cost of capital. Note that revaluation is also important here. ROIC including revaluation of fixed assets measures the company’s operating performance, and is also useful for comparing different companies and evaluating trends.15.With regard to Solak’s note concerning closed end-country funds: ()A Statement 1 is correct, statement 2 is correct.B Statement 1 is incorrect, statement 2 is incorrect.C Statement 1 is correct, statement 2 is incorrect.D Statement 1 is incorrect, statement 2 is correct.该题您未回答:х该问题分值: 2答案:CClosed-end country funds provide a simple way to access local foreign markets while achieving international diversification. One of the advantages of closed-end country funds is that investors often have greater access to emerging markets, even those from countries that tend to restrict foreign investment. This is due to the fact that redemptions are less of a concern to the emerging market government because the number of shares of the fund is fixed, and redemptions do not result in capital outflows. Statement 1 on Solak’s note is correct.One of the disadvantages of closed-end country funds is that they may trade at a significant discount premium or discount to their NAV. Although the actual performance of the stock within the closed end fund may have a low correlation with the U.S. market, the NAV of the fund may be highly correlated with the U.S. market, thus reducing the benefit of international diversification. Statement 2 on Solak’s note is incorrect. Explanations of terms16.Real interest rate该题您未回答:х该问题分值: 6答案:Real interest rate is the nominal rate you earn corrected for the change in the purchasing power of money or for the expected inflation. Roughly speaking, the real interest rate is the difference between the nominal interest rate and the inflation rate, or the nominal interest rate minus the inflation rate.17.Window instruction该题您未回答:х该问题分值: 6答案:It refers to the case in which a central bank sets the amount of loans to increase or decrease for each season for commercial banks and requires banks to obey the instruction. The measure is not formulated by the law, but it is only an instruction given by the central bank of a country.18.Special drawing rights该题您未回答:х该问题分值: 6答案:An international type of monetary reserve currency, created by the International Monetary Fund (IMF) in 1969, which operates as a supplement to the existing reserves of member countries.19.Money market mutual funds该题您未回答:х该问题分值: 6答案:Funds that issue shares to savers backed by holdings of high-quality short-term assets.20.Putable bonds该题您未回答:х该问题分值: 6答案:A putable bond grants the bondholder the right to sell the issue back to the issuer at par value on designated dates. The advantage to the bondholder is that if interest rates rise after the issue date, thereby reducing the market value of the bond, the bondholder can sell the bond back to the issuer at par.21.Please list some Capital Market Instruments.该题您未回答:х该问题分值: 10答案:The capital market is extremely important because it raises the funds needed by net borrowers to carry out their spending and investment plans.A smoothly functioning capital market influences how fast the economy grows.(1)BondsBonds are long-term debt obligations issued by corporations and government units. Proceeds from a bond issue are used to raise funds to support long-term operations of the issuer (e.g., for capital expenditure projects). In return for the investor’s funds bond issuers promise to pay a specified amount in the future on the maturity of the bond (the face value) plus coupon interest on the borrowed funds (the coupon rate times the face value of the bond). If the terms of the repayment are not met by the bond issuer, the bond holder (investor) has a claim on the assets of the bond issuer. Bond markets are markets in which bonds are issued and traded. They are used to assist in the transfer of funds from individuals, corporations, and government units with excess funds to corporations and government units in need of long-term debt funding.(2) StocksStocks are equity claims representing ownership of the net income and assets of a corporation. The income that stockholders receive for their ownership is called dividends. There are two types of stocks, common and preferred. A share of common stock in a firm represents an ownership interest in that firm. Preferred stock is a form of equity from a legal and tax standpoint. Preferred stock pays a fixed dividend, and in the event of bankruptcy of the corporation, the owners of preferred stock are entitled to be paid first before the corporation’s other creditors. Common stock pays a variable dividend, depending on the profits that are left over after preferred stockholders have been paid and retained earnings set aside.(3) FundsIn a narrow sense, fund is a reserve of money set aside for some purpose. In general, fund means a financial institution that sells shares to individuals and invests in securities issued by other companies. As you probably know, mutual funds have become extremely popular over the last20 years. What was once just another obscure financial instrument is nowa part of our daily lives. More than 80 million people, or half of the households in America, invest in mutual funds. That means that, in the United States alone, trillions of dollars are invested in mutual funds. In fact, to many people, investing means buying mutual funds. After all, it’s common knowledge that investing in mut ual funds is (or at least should be) better than simply letting your cash waste away in a savings account, but, for most people, that’s where the understanding of funds ends. It doesn’t help that mutual fund salespeople speak a strange language that is int erspersed with jargon that many investors don’t understand. Originally, mutual funds were heralded as a way for the little guy to get a piece of the market. Instead of spending all your free time buried in the financial pages of the Wall Street Journal, all you had to do was buy a mutual fund and you’d be set on your way to financial freedom. As you might have guessed, it’s not that easy. Mutual funds are an excellent idea in theory, but, in reality, they haven’t always delivered. Not all mutual funds are c reated equal, and investing in mutuals isn’t as easy as throwing your money at the first salesperson who solicits your business.22.What kind of Economic Policy in an Open Economy该题您未回答:х该问题分值: 10答案:International economic policy refers to activities of national governments that affect the movement of trade and factor inputs among nations. Included are not only the obvious measures such as import tariffs and quotas, but also domestic measures such as monetary policy and fiscal policy. Policies that are undertaken to improve the conditions of one sector in a nation tend to have repercussions that spill over into other sectors. Since an economy’s internal (domestic) sector, one cannot designate economic policies as purely domestic or purely foreign. Rather, the effects of economic policy should be viewed as being located on a continuum between two poles—an internal-effects pole and anexternal-effects pole. Although the Primary impact of an import restriction is on a nation’s trade balance, for example, there are secondary effects on national output, employment, and income. Most economic polices are located between the external and internal poles rather than falling directly on either one.23.What is the Modern Quantity Theory of Money Demand?该题您未回答:х该问题分值: 10答案:(1) The modern quantity theory of money refers to the monetary theory developed by the Chicago School. From the late 1940s through the 1990s, a group of economists, associated in varying degrees with Chicago School, build upon the traditions of classical economics with the benefit of modern theoretical and statistical techniques. Represented by Milton Friedman, originally labeled the Chicago School, but currently referred to either as monetarists or new classical macroeconomists, this informal group has produced a set of ideas with important implications for the role of money in the economy. In 1956, Friedman published his paper " The Quantity Theory of Money Demand—A Restatement", which marked the emergence of the modern quantity theory of money. On one hand, Friedman accepted the Cambridge School and Keynes’s thought that money is an asset and the demand for money is people’s behavior of choosing assets; on the other hand, Friedman basically adopted the conclusion of the traditional quantity theory of money, i. e., the change of the quantity of money is the cause of the movement of price level.(2) In his design of the function of demand for money, Friedman took into consideration the two factors; first, the total wealth expressed with permanent income which is in a reverse ratio to the demand for money; second, the difference between expected rates of return of holding money and other assets. The higher the rate of return of other assets, the weaker people’s desire to hold money. Friedman did not analyze people’s motives of holding money like Keynes, but continued to study the causes of holding money and thought that there are many different factors affecting the demand for money. Friedman used a function to express the demand for money: Md / P =f (Yp, Rm, Rb, Rf, P, W, U )Md / P: the demand for real money balances,Yp; The real GDP, the index used to count wealth, called permanent income,Rm; The expected rate of return for money,Rb: The expected rate of return for bonds,Re: The expected rate of return for stocks (common stocks),P; The expected rate of return of goods or expected rate of inflation, W; The ratio of non-human wealth to human wealth,U; Other random variables, including preference, custom, technology, system, etc.(3) In Friedman’s view, the wealth affecting the money demand is permanent and the money demand will not fluctuate with ups and downs of business cycles because the permanent income fluctuates a little in shortrun. Generally speaking, the demand for an asset has a positive interrelation with the wealth people hold. Since money is an asset, the demand for money has a positive interrelation with wealth (Yp). Friedman held that factors affecting money demand are the expected rate of return of the assets that can substitute money. Besides holding wealth in the form of money, people can hold their wealth in other forms, say, bonds, stocks (common stocks) and goods. The opportunity cost of holding money is expressed by the expected rate of return of other assets compared with money. When the expected rates of return of bonds (Rb) and stocks (Re) rise the opportunity cost of holding money will increase which will result in less demand for money. The higher the expected rate of return of other assets, the less the demand for money. P is the expected rate of return of holding wealth in the form of goods compared with money. When the prices of goods rise, the rate of return of goods equals the rate of inflation rate. When the expected rate of return of goods is higher compared with that of holding money, people will do well to "beat the higher prices" by purchasing goods sooner than usual (this is the "expectations effect"). This will reduce the demand for money. W is the ratio of non-human wealth to human wealth. Non-human wealth refers to bonds, stocks and other real assets, while human wealth refers to individuals’ ability to make money. This ratio constrains people’s income, e. g.; human wealth can not beobtained when labor force is in a state of unemployment, which naturally reduces the demand for money. Given certain level of wealth, the larger the W, the smaller the money demand. U which refers to other random variables is in a negative correlation with the money demand.Monetarists adhere to virtually all the tenets of classical economists. However, they made some modifications. Some of them have used the quantity theory as a framework for describing the relationship between M and PY rather than just M and P and view the invisible hand as pushing the economy toward the full employment level of production. A second modification of classical thought occurred in Milton Friedman’s revival of the quantity theory is that Friedman replaced the idea of the stability of velocity with the less militant notion that it is predictable. Or, money demand may not be a fixed fraction of total spending; it is related to PY in a close and predictable way.Perhaps the most important classical tradition upheld by modern monetarists is the inherent stability of the economy at full employment. This explains the monetarist rejection of governmental attempts to fine-tune economic activity. A higher level of economic activity requires more capital and labor or technological improvements; more money only leads to inflation. The answer to cyclical downturns is to wait for the natural upturn. Government intervention is unnecessary and potentially damaging.24.If you are a policy maker, what are your Ultimate Targets of Monetary Policy?该题您未回答:х该问题分值: 10答案:The Four Ultimate Targets of Monetary PolicyThe four targets of monetary policy include:(1) Economic growth,(2) Price stability,(3) Full employment, and(4) Balance of payments equilibrium.(1) Economic growthEconomic growth refers to the growth of a nation’s GDP which is the total value of goods and services domestically produced. People’s living standard has increased dramatically over history as result of the growth of the economy and its productivity. But growth means more than merelyincreasing total output. It requires that output increase faster than the population so that the average output per person expands. Economic growth in every country is the first target of monetary policy. Without certain growth rate, national economy will be in a state of stop or shrinkage and it will be impossible to enhance a nation’s economic strength and raise people’s living standard.(2) Price stabilityPrice stability means the stability of currency value and control of inflation without great change of price level within certain period. The price stability reflects the general trend of price change or average level. In modern economic society, the general price level shows a rising trend in fact. Price stability is to limit the increase rate of the price level of a certain period within certain scope. As for the certain scope within which the increase rate of price level should be kept, there are different views among economists. Generally speaking, if the rising rate of price level is within 2%—3%, it can be called price stability. Consistently stable prices help create an environment in which the other economic targets are more easily reached.(3) Full employmentFull employment means the people who have ability to work and are willing to work can find suitable jobs at present wage level. Full employment is measured with the unemployment rate of labor force. The unemployment rate is the ratio of the number of the unemployed and the labor force willing to work. The unemployment rate represents the extent of full employment in a society. Unemployment means a loss of potential output and imposes costs on the entire economy.For many reasons, a high employment level is one of the paramount goals of monetary policy. Unemployment deprives families of their chief source of income, triggers a host of social problems such as increased incidence of crime and mental illness, and impacts most heavily on the disadvantaged and those at the lower end of the income scale. Collectively, increased unemployment reduces the nation’s level of output and income as well as tax revenues at all levels of government, thereby impairing such public services as roads, public security, and education.Monetary policy affects the unemployment rate by influencing aggregate expenditures on goods and services and the level of the nation’s gross domestic product (GDP). As monetary policy becomes more stimulative, aggregate expenditures and GDP increase and the unemployment rate falls, sometimes below the natural rate. The natural unemployment rate is defined as the lowest level at which the nation’s unemployment rate can be maintained without triggering an increase in the existing inflation rate. If monetary policy becomes too stimulative and the nation’s unemployment rate falls below the natural rate, inflation accelerates. Hence, a goal of central bank policy is to keep the nation’sunemployment rate as close as possible to the natural unemployment rate without going below it. Unfortunately, the natural unemployment rate changes over time and is uncertain at any point in time. Most economists believe it is currently somewhere in the 5 to 6 percent range.(4) Balance of payments equilibriumBalance of payments is the total record of a country’s (or region’s) economic transactions, including money receipts from and payments to abroad, the difference between receipts and payments forms the surplus or deficit. It also includes some economic transactions even if they will never give rise to monetary settlements. Balance of payments during certain period reflects the state of economic development of a country and the country’s external economy. To maintain balance of payments equilibrium and reasonable quantity of foreign exchange are important conditions of a country’s stable development of economy and international intercourse. So to maintain balance of payment equilibrium should be another important target of monetary policy.。
金融英语(FECT)考试模拟练习题大汇总
1. Which of the following is not a function of money? ______.A. To act as a medium of exchangeB. To act as a unit of accountC. To act as a store of valueD. To provide a double coincidence of wantsE. To act as a means of payment2. The price in the foreign exchange market is called ______.A. the trade surplusB. the exchange rateC. the money priceD. the currency rate3. Market risk refers to the risk of______.A. financial prices fluctuationsB. defaultD. deferred payments4. Which of the following is not among the generally accepted accounting principles? ______.A. Cash basisB. PrudenceC. ConsistencyD. Going concernE. Money measurement.5. What is a documentary letter of credit? ______.A. A conditional bank undertaking to pay an exporter on production of stipulated documentationB. A method of lending against documentary securityC. An international trade settlement system biased in favour of importersD. All of the above6. Holding a group of assets reduces risk as long as the assets ______.A. are perfectly correlatedB. are completely independentC. do not have precisely the same pattern of returnsD. have a correlation coefficient greater than one7. An amount, payable in money goods, or service, owed by a business to a creditor, is known as a/an .A. liabilityB. debtC. equityD. asset8. What function is money serving when you buy a ticket to a movie? ______.A. store of valueB. a medium of exchangeC. transaction demandD. a unit of account9. If foreigners expect that the future price of sterling will be lower, the ______.A. supply of sterling will increase, demand for sterling will fall, and theexchange rate will fallB. supply of sterling will increase, demand for sterling will rise, and theexchange rate may or may not increaseC. supply of sterling will fall, demand for sterling will increase, and the exchange rate will riseD. supply of sterling will fall, demand for sterling will fall, and the exchange rate may or may not fall10. The documentary collection provides the seller with a greater degree of protection than shipping on ______.A. open accountB. bank's letter of guaranteeC. banker's draftD. documentary credit11. Which of the following statements is not true of central banks? ______.A. They pay the government's salariesB. They always undertake the regulation of the banking systemC. They are always the lender of last resortD. None of the above12. When GBP/USD rate goes from 1.6150 to 1.8500, we say the dollar ______.A. appreciates by 12.70%B. depreciates by 14.55%C. depreciates by 12.70%D. appreciates by 14.55%13. According to diversification principle in investment, suppose you invest Stock X and Stock Y with equal funds, which of the following is not true? ______.A. If X and Y are totally independent with each other, the risk of the portfolio is reducedB. If X and Y are perfectly negatively correlated, the risk of the portfolio is perfectly offsetC. If X and Y are perfectly positively correlated, the risk of the portfolio is neither reduced nor increasedD. If X and Y are perfectly negatively correlated, the risk of the portfolio is neither reduced nor increased14. These are four main methods of securing payment in international trade:(1) payment under documentary credit(2) open account(3) collection, that is document against payment or acceptance of a bill of exchange(4) payment in advanceFrom an exporter's point of view, the order of preference is ______.A. (4) , (2) , (3) , (1)B. (4) , (1) , (3) , (2)C. (4) , (3) , (1) , (2)D. (2) , (4) , (1) , (3)15. The main liability on a bank balance sheet is ______.A. depositsB. capital and reservesC. loans and overdraftsD. cash16. ______ shows that net income for a specified period of time and how it was calculated.A. The income statementB. The capital statementC. The accounting statementD. The statement of financial condition17. Why must the liabilities and assets of a bank be actively managed? ______.A. Because assets and liabilities are not evenly matched on the same time scaleB. Because assets and liabilities are evenly matchedC. Because the interbank market uses LIBORD. Because assets and liabilities can be underwritten18. If the expected returns of two risky assets have a perfect negative correlation, then risk .A. is increasedB. falls to zeroC. is unaffectedD. is reduced by one-half19. A possible disadvantage of freely fluctuating exchange rates with no official intervention is that .A. some nations would experience continual deficitsB. the exchange rates may experience wide and frequent fluctuationsC. nations would no longer be able to undertake domestic policies designed to achieve and maintain full employmentD. nations would need a larger supply of international reserves than otherwise20. What are your GBP/USD position and the average rate if you sell ￡4m at 1.6350 buy ￡5m at 1.6340 and sell $5m at 1.6348?A. Short ￡2 058 478.10 long $3 370 000 at 1.6371B. Long ￡5 941 521.90 short $9710 000 at 1.6342C. Short ￡5 941 521.90 long $9 710 000 at 1.6342D. Long ￡4 058 478.10 short $6 630 000 at 1.633621. A correlation coefficient of +1.0 means two stocks are ______.A. perfectly negatively correlatedB. opposite the market betaC. equal to the market betaD. perfectly positively correlated22. The percentage analysis of increases and decreases in corresponding items in comparative financial statements is called ______.A. external analysisB. horizontal analysisC. vertical analysisD. comparative analysis23. What is the name of the document which can make a buyer feel confident that goods are of a certain standard? ______.A. Inspection certificateB. Commercial invoiceC. Insurance policyD. Certificate of origin24. Sometimes financial intermediaries by "borrowing short and lending long" find themselves in difficult financial situations because .A. short-term rates are fallingB. long-term rates are risingC. deposits increase too rapidlyD. short-term rates rise relative to rates of their holdingsE. long-term rates rise more sharply than short-term rates25. Incoterms were written ______.A. by the International Chamber of CommerceB. under the United Nations Convention for the International Sale of Goods (Vienna Convention )C. under the Kyoto Protocols as adopted in 2000D. under "fast track" authority granted by the U.S. Congress26. The purpose of keeping account is to .A. determine whether the business has made a profit or a lossB. find out why the business has lost moneyC. see how much has been spentD. find out why the business cannot fulfil its commitments27. If reserves are 20 percent, then the multiplier effect will be ______ times, so the original deposit of RMB40 000 can create up to ______ of new deposits.A. 5……RMB200000B. 4……RMB120000C. 3……RMB80000D. 6……RMB2000028. ABC Company is the beneficiary of a confirmed irrevocable letter of credit. ______ bank ( s ) will assure the company that it will be paid.A. OneB. NoneC. ThreeD. Two29. Legal tender includes .A. notes and coinsB. notes onlyC. coins onlyD. notes, coins and checks30. The following are the basic functions of a bill of lading except to act as ______.A. a receipt for the goods from the shipping company to the exporterB. a document of title for goods being shipped overseasC. a certificate of origin, which certifies that the goods were produced in a particular countryD. evidence of the carriage contract between the exporter and the carrier31. Persistent foreign trade deficits under a flexible exchange rate system usually lead to ______.A. inflation in the domestic economyB. speculation of future devaluationC. falling interest ratesD. rising imports32. The additional amount paid in buying or selling a currency at a given future date is called .A. premiumB. commissionC.tariffD. dividend33. Banks manage their assets considering ______.A. riskB. some optimum combination of the aboveC. earningsD. liquidity34. What is the function of the book-keeping system in bank accounting? ______.A. To prove that all the day's transactions have gone through for the right amountB. To prove that all the day's transactions have all been posted to the right accountC. To prove that the fresh balance of those accounts is correct after recording the transactionsD. All of the above35. The risk that is specific to individual stocks is called ______.A. systematic riskB. country riskC. unsystematic riskD. market risk36. The main objective of the Exchange Equalization Account is to ______.A. prevent undue fluctuation in the exchange value of one country's own currency against other currenciesB. control the rate of inflationC. ensure that notes and coins continue to be acceptable as a medium of exchangeD. permit the exchange of payments between banks37. How can you prove that no transactions are missing or wrong at the end of the day? ______.A. There is no other way than have these transactions reposted to the proper entriesB. We can examine all the transactions carefully and find the wrong recordsC. We can balance the total debits and the total credits by calculating them againD. We can do that by checking the total debits and the total credits to see whether they are in state of balance38. Money _____.A. serves as the critical function of a medium of exchangeB. facilitates trade in goods and servicesC. overcomes the inefficiencies of barterD. all of the above39. If dealers buy currency forward but do not sell forward at the same time, their position is known as .A. shortB. forerunnerC. speculationD. long40. Incoterms apply ______.A. only if clearly incorporated into the contract of saleB. to International shipments beyond a certain tonnageC. to international shipments under the Uniform Commercial CodeD. to all international shipments of goods41. Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract? ______.A. Import of goods priced in a foreign currencyB. Import of goods priced in RMBC. Export of goods priced in RMBD. Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract42. Incoterms address ______.A. the risks of loss between the partiesB. breaches of contractC. ownership rightsD. type of ship used43. Which of the following is or was an example of representative full-bodied money? ______.A. Debt moneyB. ATS accountC. Gold certificateD. Demand deposit44. Risks associated with investing in foreign countries are the following except ______.A. voting riskB. exchange rate riskC. country riskD. political risk45. An exporter sells goods to a customer abroad on FOB and on CIF term. Who is responsible for the freight charges in each? ______.A. Exporter; ExporterB. Exporter; ImporterC. Importer; ImporterD. Importer; Exporter46. Default risk refers to the possibility that a borrower may ______.A. be unable to repay the principal on his loanB. be unable to make the interest payments on his loanC. go bankruptD. all of the above47. What is the reserve requirement? ______.A. The requirement of a bank to deposit a percentage of moneyB. The requirement for deposits in cashC. The percentage of a bank's deposits in the form of cash reservesD. The requirement for cash reserves48. A draft is like a check that can be endorsed but it isn't a title to goods, like ______.A. a bill of ladingB. an inspection certificateC. a certificate of originD. an insurance certificate49. Arbitrage ______.A. is a general economic term for buying something where it is cheap and selling it where it is dearB. keeps exchange rates consistent across marketsC. has been outlawed by the International Monetary FundD. cannot occur where there is a forward exchange marketE. both A and B50. What is the purpose of comparing the ledger entries with the documents? ______.A. To prove that all the transactions have made for the right amountsB. To prove that all the accounts have been posted correctlyC. To check the number of all the debits and creditsD. To post the right accounts51. What is Dollar Cost Averaging? ______.A. A brokerage account that gives investors cheap tradesB. The idea that prices tend to rise over the long termC. Buying stocks that are below average in valueD. A flat quarterly mutual fund fee averaged throughout the yearE. A strategy of investing money on a regular basis to take advantage of market fluctuations52. From a Chinese bank's point of view, the currency account which it maintains abroad is known as______, while a RMB account operated in China for a foreign bank is termed ______.A. a vostro account…… a nostro accountB. a vostro account…a mirror accountC. a mirror account…a nostro accountD. a nostro account…… a vostro account53. Under FOB terms the bill of lading would state goods ______.A. loaded on board, freight payable at destinationB. loaded on board, freight paidC. received for shipment, freight paidD. received for shipment, freight payable at destination54. The liabilities of the bank as shown in its balance sheet represent the ______ which it uses in its business.A. sources of the fundsB. share capitalC. investmentsD. advances to customers55. International payments and other messages are often sent through an international computer network called ______.A. CHAPSB. BACSC. SWIFTD. EIMT56. Low levels of uncertainty (risk) are associated with .A. stocksB. stock optionsC. higher potential returnsD. lower potential returns57. Government securities would appear on a commercial bank's balance sheet as ______.A. an assetB. reservesC. part of net worthD. a liability58. A major problem with a fixed exchange rate system is that when countries run foreign trade deficits, ______.A. there is no self-correcting mechanismB. currency values become unstableC. the value of the reserve currency declinesD. world inflation increases59. In a particular economy banks are required to keep 25 percent of all deposits in the form of reserves; this gives a credit-creation multiplier of ______.A. fourB. threeC. twoD. five60. Regulation of the money supply and financial markets is referred to as ______.A. fiscal policyB. income policyC. monetary policyD. budgetary policy61. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .A. imports automatically increaseB. currency automatically depreciatesC. exports automatically declineD. currency automatically appreciates62. Which of the following statements is not true of accounting?______.A. Accounting is language of businessB. The user of accounting includes business, government, nonprofit organizations and individuals.C. Accounting is useful for decision makingD. Accounting is an end rather than a means to an end63. The term foreign exchange is best defined by the following statement: it is ______.A. the rate of exchange between two currenciesB. synonymous with currency exchangeC. the place in which foreign currencies are exchangedD. an instrument such as paper currency, note, and check used to make payments between countries64. What is Asset Allocation? ______.A. Buying assets of different types, risks, and potential returnsB. Buying assets with more than one brokerage accountC. The ability to buy mutual fundsD. Buying stocks for the long term65. External users of financial accounting information include all of the following except .A. suppliersB. line managersC. general publicD. creditors66. CAPM is short for .A. Capital Asset Pricing ModelB. Cash Added Price MatrixC. Capital Asset Pricing MatrixD. Cost and Price Model67. Liquidity measures the ______.A. value of an assetB. ease with which an asset can be exchangedC. usefulness of an assetD. economic and monetary reliability of an asset compared with other assets68. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.A. documents…… the creditB. merchandise…… the contractC. documents…… the contractD. merchandise……the buyer ordered69. A barter economy is one that does not possess _______.A. any wealthB. printed currencyC. a medium of exchangeD. gold70. Which of the following is not true of airway bill? ______.A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goodsB. Airway bill is a document of title to the goodsC. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flightD. None of the above71. The value of money varies _____.A. directly with the unemployment rateB. directly with the price levelC. inversely with the unemploymentD. inversely with the price level72. The economics news on the television reports that the dollar has strengthened relative to the Japanese yen. This means that ______.A. the dollar has depreciated relative to the yenB. the dollar can now purchase more yenC. the yen can now purchase more dollarsD. the US trade balance with the Japanese economy has improved73. The theory of international exchange that holds that exchange rates are set so that the price of similar goods in different countries is the same is the ______.A. price feedback theoryB. trade feedback theoryC. purchasing power parity theoryD. J-curve theory74. According to the optimal portfolio theory, where should portfolios lie? ______.A. On the efficient frontierB. Above the efficient frontierC. Under the efficient frontierD. Anywhere, as long as the portfolio is diversified75. Which of the following is not a user of management accounting information? ______.A. Store managerB. CreditorC. CEOD. CFO76. Based on the scenarios below, what is the expected return for a portfolio with the following return profile? ______.Market ConditionA. 4%B. 10%C. 20%D. 25%Use the following expectations on Stocks X and Y to answer questions77. Financial markets serve to channel funds from ______.A. the government to contractorsB. investors to consumersC. consumers to producersD. savers to investors78. The agreements that were reached at the Bretton Woods conference in 1944 established a system .A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed-upon value of its currencyB. of floating exchange rates determined by the supply and demand of one nation's currency relative to the currency of other nationsC. that prohibited governments from intervening in the foreign exchange marketsD. in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading79. Which of the following statements is not consistent with generally accepted accounting principles relating to asset valuation? .A. Assets are originally recorded in accounting records at their cost to the business entityB. Accountants prefer to base the valuation of assets upon objective, verifiable evidence rather than upon appraisals or personal opinionC. Accountants assume that assets such as office supplies, land and buildings will be used in business operations rather than sold at current market pricesD. Subtracting total liabilities from total assets indicates what the owner's equity in the business is worth under current market conditions80. A fiscal expansion in the UK ______ the pound sterling.A. tends to appreciateB. tends to depreciateC. does not affect the price ofD. has no predictable effect on the price of81. What are the expected returns for Stocks X and Y respectively? ______.A. 20% and 10%B. 18% and 12%C. 20% and 11%D. 18% and 5%82. Which of the following payment terms eliminates the exchange risk, assuming the exporter invoices in foreign currency? ______.A. Confirmed irrevocable documentary creditB. Open accountC. Documentary collection D/AD. None of the above83. ABC Co. Ltd. purchased a car for $ 12 000, making a down payment of $5 000 cash and signing a $7 000 note payable due in 60 days. Which of the following is not correct? ______.A. From the viewpoint of a short-term creditor, this transaction makes the business less solventB. Total liabilities increased by $7 000C. Total assets increased by $12 000D. This transaction had no immediate effect on the owner's equity in the business84. Which of the following terms of payment will entirely eliminate country risk? ______.A. Revocable documentary creditsB. Confirmed Irrevocable documentary creditsC. Documentary collection D/PD. Documentary collection D/A85. The expiry date of a documentary credit is Sunday, 24 February, and documents have to be A presented to you. Which of the following is an acceptable presentation? (Assume there is no latest stated date for shipment stipulated.) ______.A. Presentation to you on Monday 25 February with the bill of lading dated 25 FebruaryB. Presentation on Monday 25 February with the bill of lading dated Sunday 24 FebruaryC. Presentation on Tuesday 26 February with the bill of lading dated Sunday 24 FebruaryD. Presentation on Friday 22 February with the bill of lading dated Sunday 29 January86. What are the standard deviations of returns on Stocks X and Y respectively? ______.A. 15% and 26%B. 24% and 13%C. 20% and 4%D. 28% and 8%87. Who makes the first presentation of documents under a transferable credit? ______.A. ApplicantB. First beneficiaryC. Second beneficiaryD. None of the above88. A transaction caused a $10 000 decrease in both total assets and total liabilities. This transaction could have been ______.A. repayment of a $ 10 000 bank loanB. an asset with a cost of $10000 was destroyed by fireC. purchase of a delivery truck for $10 000 cashD. collection of a $10 000 account receivable89. Money ceases to serve as an effective store of value when ______.A. the government runs large deficitsB. the unemployment rate is very highC. productivity in the economy declinesD. rapid inflation occurs90. An indication that the money supply is greater than the desirable amount would be .A. insufficient spending and excessive savingB. deflationC. inadequate spending and rising unemploymentD. rising wages and prices81. What are the expected returns for Stocks X and Y respectively? ______.A. 20% and 10%B. 18% and 12%C. 20% and 11%D. 18% and 5%82. Which of the following payment terms eliminates the exchange risk, assuming the exporter invoices in foreign currency? ______.A. Confirmed irrevocable documentary creditB. Open accountC. Documentary collection D/AD. None of the above83. ABC Co. Ltd. purchased a car for $ 12 000, making a down payment of $5 000 cash and signing a $7 000 note payable due in 60 days. Which of the following is not correct? ______.A. From the viewpoint of a short-term creditor, this transaction makes the business less solventB. Total liabilities increased by $7 000C. Total assets increased by $12 000D. This transaction had no immediate effect on the owner's equity in the business84. Which of the following terms of payment will entirely eliminate country risk? ______.A. Revocable documentary creditsB. Confirmed Irrevocable documentary creditsC. Documentary collection D/PD. Documentary collection D/A85. The expiry date of a documentary credit is Sunday, 24 February, and documents have to be A presented to you. Which of the following is an acceptable presentation? (Assume there is no latest stated date for shipment stipulated.) ______.A. Presentation to you on Monday 25 February with the bill of lading dated 25 FebruaryB. Presentation on Monday 25 February with the bill of lading dated Sunday 24 FebruaryC. Presentation on Tuesday 26 February with the bill of lading dated Sunday 24 FebruaryD. Presentation on Friday 22 February with the bill of lading dated Sunday 29 January86. What are the standard deviations of returns on Stocks X and Y respectively? ______.A. 15% and 26%B. 24% and 13%C. 20% and 4%D. 28% and 8%87. Who makes the first presentation of documents under a transferable credit? ______.A. ApplicantB. First beneficiaryC. Second beneficiaryD. None of the above88. A transaction caused a $10 000 decrease in both total assets and total liabilities. This transaction could have been ______.A. repayment of a $ 10 000 bank loanB. an asset with a cost of $10000 was destroyed by fireC. purchase of a delivery truck for $10 000 cashD. collection of a $10 000 account receivable89. Money ceases to serve as an effective store of value when ______.A. the government runs large deficitsB. the unemployment rate is very highC. productivity in the economy declinesD. rapid inflation occurs90. An indication that the money supply is greater than the desirable amount would be .A. insufficient spending and excessive savingB. deflationC. inadequate spending and rising unemploymentD. rising wages and prices91. If a nation's interest rates are relatively low compared to those of other countries, then the exchange value of its currency will tend to ______ under a system of exchange rates.A. appreciate…… floatingB. depreciate……floatingC. appreciate…… fixedD. depreciate…… fixed92. Which of the following is true of a company's balance sheet? ______.A. It displays sources and uses of cash for the periodB. It is unnecessary if both an income statement and a statement of cash flows are availableC. It is a separate representation of the company's revenue and expense transactions for the yearD. It is an expansion of the basic accounting equation ofAssets=Liabilities+Owner's Equity93. When Americans or foreigners expect the return on dollar deposits to be high relative to the return on foreign deposits, there is a ______ demand for dollar deposits and a correspondingly ______ demand for foreign deposits.A. higher…… higherB. lower…… higherC. higher…… lowerD. lower……lower94. Velocity is the ______.A. inverse of GNPB. speed at which checking accounts are converted into cashC. relationship between the price level and the money supplyD. rate at which money turns over95. Assume that of your $10 000 portfolio, you invest $9 000 in Stock X and $1 000 in Stock Y. What is the expected return on your portfolio? ______.A. 18%B. 20%C. 19%D. 3%96. Which of the following would you expect to find in a correctly prepared income statement? .A. Cash balance at the end of the periodB. Expenses incurred during the period to earn revenuesC. Contributions by the owner during the periodD. The reported company's financial position at a specific date。
金融英语：FECT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。
2011年金融英语(fect)模拟练习题及答案(2)
2011年金融英语（fect）模拟练习题及答案（2）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 currency B．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 entity B．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．B 2．D 3．D 4．A 5．B 6．A 7．B 8．A 9．C 10．B11．D 12．B 13．C 14．A 15．B 16．B 17．A 18．A 19．D 20．A。
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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。