《金融专业英语》专业问答

《金融专业英语》 Questions and Answers

- 1 - 1. What is the international balance of payment and which items does it constitute by?

The balance of payment is a statement of a country’s monetary transactions with the rest of the world. They are current account, capital account and balance item.

2. W hich methods could be used to balance the international payment deficit?

The methods will be used as following: a. import restriction b. export promotion c. tighten monetary policy d. tighten fiscal policy e. devaluation

3. Which categories do financial markets mainly include?

They include foreign exchange market, money market, capital market and gold market.

4. What are the major functions of modern commercial bank?

a. They are medium of credit.

b. They are medium of payment.

c. They change money into capital.

d. They are creation of credit.

5. W hat is Capital Adequacy Ratio?

— Capital Adequacy Ratio is the ratio of the total capital base to the total risk weighted assets.

6. What are the functions of a central bank?

— It is : a. Banker to the government. b. Banker to the commercial banks. c. Lender of last resort.

7. W hat is the biggest difference between off-balance sheet activities and intermediary activities of commercial banks?

— Off-balance sheet activities constitute potential assets or liabilities and bear certain risk while intermediary activities don ’t constitute risks in assets or liabilities.

8. W hat is exchange rate? What are the two marked price methods?

— The exchange rate refers to the price of one currency expressed in terms of another. And there are two marked price methods are used. They are direct and indirect methods.

9. What are spot exchange rates? What are forward exchange rates?

— Spot exchange rates are rates that are quoted for spot transaction of foreign exchange. Spot transactions usually require delivery of the exchange involved within two business days. Forward exchange rates are fixed at the time the contract is opened and the contract is firm and binding upon both parities ’ delivery or sale at an agreed time in future.

10. Please point out the basic party of credit business.

— They are: a. the applicant b. the beneficiary c. issuing bank d. advising bank/negotiating bank/confirming bank

11. What are the principles of commercial bank management?

—They are: a. liquidity b. safety c. profitability

12. Which does c ommercial bank’s asset s operation mainly have?

— It has cash, loans, bill discounts, investments, etc..

13. What are the basic principles of letter of credit?

— They are : a. The issuing bank assumes primary payment liability. b. The issuing bank must make sure that the documents presented are in conformity with the conditions of the credit while performing payment liability. c. L/C originates from basic contract, but is independent of it.