金融英语习题

1. 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 bond in their legal standing and method of operationD. They are unlike a tender bond with its fixed expiry date3. The most liquid of all assets is ______.A. the stock of commercial banksB. M 1C. intelligenceD. the debt of major corporations4. Beta and standard deviation differ as risk measures in that beta measures ______.A. only unsystematic risk，while standard deviation measures total riskB. only systematic risk，while standard deviation measures total riskC. both systematic and unsystematic risk，while standard deviation measures only unsystematic riskD. both systematic and unsystematic risk，while standard deviation measures only systematic risk5. What information would you find in a statement of cash flows that you would not be able to get from the other two primary financial statements？______.A. Cash provided by or used in financing activitiesB. Cash balance at the end of the periodC. Total liabilities due to creditors at the end of the periodD. Net income6. An analyst estimates that a stock has the following probabilities of return depending on the state of the economy：State of economyProbabilityReturn Good 0.1 15% Normal 0.6 13% Poor 0.3 7%The expected return of the stock is ______.A. 7.8%B. 11.4%C. 11.7%D. 13.0%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 debits8. 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 Mdrch20 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 system17. 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 customer1. 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？______.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 prices1. 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 basis B . Prudence C. ConsistencyD. Going concernE. Money measurement.5. What is a documentary letter of credit？______.A. A conditional bank undertaking to pay an exporter on production of stipulated documentationB. A method of lending against documentary securityC. An international trade settlement system biased in favour of importersD. All of the above6. Holding a group of assets reduces risk as long as the assets ______.A. are perfectly correlatedB. are completely independentC. do not have precisely the same pattern of returnsD. have a correlation coefficient greater than one7. An amount，payable in money goods，or service，owed by a business to a creditor，is known as a/an .A. liabilityB. debtC. equityD. asset8. What function is money serving when you buy a ticket to a movie？______.A. store of valueB. a medium of exchangeC. transaction demandD. a unit of account9. If foreigners expect that the future price of sterling will be lower，the ______.A. supply of sterling will increase，demand for sterling will fall，and the exchange。