2012年金融英语考试模拟试题及答案(1)

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金融英语模拟试题及答案

金融英语模拟试题及答案Reading Comprehension: (10 points)Joseph Glass, CFA, is a consultant who provides advisory services to large manufacturing companies. Glass has been retained by ABCO, a leading manufacturer of widgets for automobiles in the United States. ABCO has hired Glass to evaluate the possibility of e*panding their current base of operations by building an additional facility in South America. Management of ABCO has identified an increase in demand for widgets in South America over the past decade, and any new manufacturing facility would produce goods to satisfy that void and would be distributed and sold across South America.Glass is not familiar with the current economic climate in South America, but is aware that several governments have attempted to encourage economic development in their countries through the enactment of pro-business legislation. Two of these countries, Venezuela and Peru, both have the reputations of being “friendly” to foreign economic investment withintheir borders. The two countries share some similarities: both, until the past twenty years, were primarily agricultural economies with little industrial development. Also, both countries can offer a relatively low-cost labor force, although their workers in general, are not highly skilled.The government of Peru has declared that protecting the country’s environment is of utmost importance, and has established a regulatory body that oversees any environmental concerns that may arise as the country becomes more industrialized. Fairly stringent regulations have already been put into place in order to ensure that going forward, the operating practices of manufacturers within their country’s borders will be in balance with the government’s concern for their county’s natural resources. Regulations cover areas of concern such as air emissions, water conservation and the use of sustainable resources. Glass advised ABCO that a cost-benefit analysis must be performed to accurately determine both the direct and indirect costs of compliance with the regulations.The Venezuelan government has taken steps to ensurethat it can carefully manage the development of its country’s emerging economy, and to ensure that a competitive market is maintained. A regulatory agency was established five years ago to provide guidance for any new manufacturing concern seeking to operate in Venezuela. The head of the agency is Juan Santos, the former CEO of one of the first modernized manufacturing facilities in the country. During his tenure as head of the agency, he has demonstrated his ability to render decisions that attempt to simultaneously satisfy legislators, industry participants, and consumers. Glass is impressed by Santos’ work so far, but realizes that over the past five years, Venezuela has e*perienced a period of relatively slow economic development. Glass believes that Santos’ skills will truly be put to the test in the upcoming years of the anticipated economic e*pansion.Glass acknowledges the need for governmental regulation of industry, but recognizes that there always are offsetting costs, both short-term and long-term of such controls. Based upon his knowledge of events that have occurred in the United States over thepast thirty years, Glass recommends that ABCO continue to carefully monitor economic developments in both countries even after a site for a new manufacturing facility is selected.Part 1)Should ABCO build a new facility in either of the two countries, it is almost a certainty that they would be the low-cost producer of widgets, with the capacity to satisfy nearly all demand in the region. A natural monopolist operating in an unregulated industry will produce at the point where:A. Marginal costs equal marginal revenue.B. Average costs equal marginal revenue.C. Average costs equal average revenue.D. The marginal cost curve intersects the demand schedule.Part 2)The social regulation policies enacted by the government of Peru would least likely to cause which of the following outcomes? ()A. Higher costs of production.B. A disproportionately higher compliance e*pensefor larger firms rather than smaller firms.C. Higher prices for the end consumer.D. Attempts by industry participants to avoid compliance through creative response.Part 3)If ABCO were to build its new facility in Peru, compliance with the country’s regulatory policies will increase the price of their product by appro*imately ten percent. Some consumers may respond by not replacing the widgets in their automobiles as frequently as before, which will cause decreased fuel efficiency. This unintended effect of regulation is an e*ample of: ()A. The capture hypothesis.B. A creative response.C. A feedback effect.D. The share-the-gains, share-the-pains theory.Part 4)The appointment of Santos, an industry “insider”, to head the regulatory agency in Venezuela has the potential to cause a reaction predicted by which of the following theories of regulatory behavior? ()A. Rate-of-return regulation.B. Share-the-gains, share-the-pains theory.C. The capture hypothesis.D. Cost-of-service regulation.Part 5)Santos, as the head of the main regulatory body in Venezuela, must decide how to manage the effects of an unanticipated sharp increase in the cost of electricity. Santos proposed regulation that will allow manufacturers to pass on the increased costs at scheduled intervals over a five year period. This approach is an e*ample of: ()A. Rate of return regulation.B. Cost-of-service regulation.C. Share-the-gains, share-the-pains theory.D. Social regulation.E*planations of terms：(10 points)1. Liquidity2. Cost-push inflation3. Surveillance4. E*ternal debt5. Foreign reserveQuestion3: How many factors to e*plain the reserveholdings?Question4: What is The Monetary Policy Instruments of the Central Bank?Question5: What is Concept of Trust Market？And what the composition of it is?Question6: What is the Money Laundering?。

2012年MBA英语第一套模拟试题及答案-中大网校

2012年MBA英语第一套模拟试题及答案总分：100分及格：60分考试时间：60分PARTIStructureandV ocabulary(10%)。

(1) 1 . He didn't seem to mind ___________ TV while he was trying to study. A. their watching B. them watch C. they watching D. them to watch (2) 2. It is said that more than one person in this department ___________ going to lose his job. A. are B. were C. will D. is (3)When she ___________ all the magazines, she’ll come back home . A. has sold B. will sell C. sell D. would sell (4)Themanufacturer claimed that this engine is ___________ the Previous one. A. as twice pOwerfd8S B. powerful as twice as C. twice powerful as D.twice as powerfu1 as (5)Nowhere else in the world________________ more attractive scenery thanin Switzerland. A. are found B. have been found C. you can find D. can you find (6)1f he had not been ill yesterday，he ________to class. A. go B. would go C. would have gone D. went (7)__________ science and technology he1p the society to progress is a fact accepted by most people. A. Modern B. That modern C. There modern D. It is modern (8)________ one of the leading novelists in America，Amy Taylor has also written a number of poems and plays. A. Considered B. Considering C. Having considered D. Been considered (9)The streets are all wetlt_________during the night。

2012年金融英语考试模拟试题及答案(4)

2012年金融英语考试模拟试题及答案(4)SECTION ONE (Compulsory)：Answer all ten questions in this section. Each question carries 1 mark.1. Multiple-choice questions: from the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points)1. The law of diminishing returns: ()A. Assumes that there are changes taking place in production techniques.B. Will always result in a positive figure.C. Results in average product equaling marginal product when the average product is at its maximum.D. Shows that the average product rises more rapidly than the marginal product.2. Income elasticity of demand for a particular product: ()A. Will always have a positive measurement.B. Will be of value to the Government in setting the coming year’s direct tax rates.C. Will be unrelated to the possibility of changes in design of the product.D. Could be affected by changes in levels of discretionary spending power.3. For a profit-maximizing firm, the price level equals its marginal revenue (MR) when: ()A. In an oligopolistic market.B. In a monopolistic situation.C. In a perfectly competitive market.D. Sales rise with the increase in price level.4. When one country’s potential GDP is higher than its real GDP, this means: ()A. Its exports are higher than its imports.B. Inflation is getting worse.C. There exists some unemployment.D. None of the above.5. Cutting taxes can lower investment through its impact on interest rates. This is an example of the: ()A. Income effect.B. Accelerator effect.C. Crowding out effect.D. Multiplier effect.6. The price of petrol increases and sales of tyres decrease. This reflectsA. Petrol and tyres are substitutes, and there is a strong income effect.B. The demand for tyres is inelastic.C. Tyres are inferior goods.D. Petrol and tyres are complements, and there is also an income effect.7. The FDIC presently insures deposits up to what amount? ()A. $25,000 per accountB. $50,000 per accountC. $100,000 per accountD. $1,000,000 per accountE. Unlimited8. Firms which specialize in helping companies raise capital by selling securities are called ()A. commercial banksB. investment banksC. savings banksD. credit unionsE. all of the above9. The most liquid of all assets is ()A. The stock of commercial banksB. M1C. IntelligenceD. The debt of major corporations10. Company A and Company B are identical in every way except their capital structure.Each firm can borrow at 10% and each is taxed at 40%.Company A Company BAssets 1000 1000Equity 600 1000Debt 400 100EBIT 100 100Which firm had the higher Net Income? Which firm had the higher ROE? ()A. Company B had a higher net income but the ROEs were identical.B. Company A had a higher net income; company A had a higher ROE.C. Company B had a higher net income; company B had a higher ROE.D. Company A had a higher net income; company B had a higher ROE.E. Company B had a higher net income; company A had a higher ROE.SECTION TWO(Compulsory)：Answer the questions in this section.Reading Comprehension: (10 points)Renaud Blanc is an analyst in the risk management department of De Luca Corporation, a U.S. company that processes fruit and vegetables bought on the world market. Production and sales of packaged fruit juices and condiments occur in the United States, South America, and Europe. Blanc is responsible for making assessments of the relative strength of the U.S. dollar against other relevant currencies. Blanc knows that relative rates of inflation will influence the dollar value of a currency, so he forecasts inflation for the United States and its trading partners.De Luca buys fruit from Brazil. For the coming year Blanc forecasts annual U.S. inflation of 2% and annual Brazilian inflation of 10%. The current exchange rate is BRL3/USD (BRL = Brazilian real, USD = U.S. dollar). The one-year risk-free interest rates in the United States and Brazil are 2.25% and 18%, respectively.One of Blanc’s colleagues, Paula Smith, makes the following statements:1. "The theory of uncovered interest rate parity allows me to calculate E(S1)/S0 as being equal to the ratio of "one plus the one-year Brazilian interest rate”to "one plus the one-year U.S. interest rate,”when the expected ending exchange rate, E(S1), and the beginning of period exchange rate, S0, are quoted as BRL/USD.”2. "Exchange rate risk reduces to inflation uncertainty if all parity relationships hold perfectly.”Smith questions Blanc about whether forward markets for the Brazilian real give anyindication about the expected exchange rate in one year. Blanc responds:"If the forward rate equals the expected spot rate, then using forward currency contracts to hedge exchange risk would be costless (aside from commissions) in terms of the expected dollar price that De Luca would pay for fruit in Brazil.”De Luca also purchases fruit and packaging materials in Europe. Blanc is considering various ways to hedge against the cost of future material purchases in Europe. For the coming year, he forecasts annual inflation of 4% inflation for Europe and 2% for the United States. He believes that uncovered and covered interest parity hold for the United States and Europe.Part 1)If the international Fisher effect holds, based on Blanc’s forecasts, the current one-year risk-free interest rate in Europe should be closest to: ()A. 0.25%.B. 2.25%.C. 4.25%.D. 6.25%.Part 2)Based on Exhibit 1, funded status of Duban’s pension plan under U.S. GAAP for 2007 ($ millions) would be closest to: ()A. 1,256 liability.B. 681 liability.C. 681 asset.D. 1,256 asset.Part 3)Based on Exhibit 1, the pension expense ($ millions) that would be reported on Duban’s 2007 income statement under U.S. GAAP would be closest to: ()A. 187.B. 225.C. 230.D. 317.Part 4)Based on Exhibit 1, the underlying economic pension expense ($ millions) for Duban for 2007 would be closest to: ()A. 187.B. 192.C. 233.D. 274.Part 5)Based on Exhibit 2, under U.S. GAAP Duban’s 2007 translation gain on Kerwin’s identifiable assets resulting from exchange rate changes ($ millions) was closest to: ()A. 133.B. 165.C. 197.D. 216.Explanations of terms：(10 points)1. Liquidity preference2. Moral suasion3. J-curve effect4. Capital asset pricing model (CAPM)5. Interest rate riskQuestion3: What is The Targets of China’s Monetary Policy?Question4: List the Basic Features of a Corporate Bond IssueQuestion5: How does the inflation affect Wealth and Redistribution of Income?Question6: What is The Purpose of Holding Foreign Reserve?1. C D C C B ， 6.D C E B CReading Comprehension: (10 points)Part 1)Your answer: C was correct!Discuss the international Fisher relation and calculate and interpret 1) interest rates exactly and by linear approximation, given expected inflation rates and the assumption that the international Fisher relation holds, 2) the real interest rate, given interest rates and inflation rates and the assumption that the international Fisher relation holds, and 3) the international Fisher relation, and its linear approximation, between interest rates and expected inflation rates. If the international Fisher relation holds, then the real rate in Europe is equal to the real rate in the United States. Given rUS = 2.25 and IUS = 2, we calculate the real U.S. rate, ρ , to be equal to 2.25 - 2.00 = 0.25 (where IUS is the expected rate of inflation in the U.S.). We now know that the European real rate is ρ = 0.25%. Based on IEurope = 4%, we have rEurope = ρ + expected IEurope = 0.25 + 4.0 = 4.25%.Part 2)Your answer: A was correct! Calculate the underlying economic liability (or asset) of a company based upon pension and other post-employment benefit disclosures. The pension liability is calculated as follows:Part 3)Your answer: B was correct!Describe the components of a company’s defined-benefit pension expense and explain the impact of plan assumptions on that pension expense. The pension expense is calculated as follows:Part 4)Your answer: D was correct!Calculate the underlying economic pension and other post-employment expense (income) based upon disclosures after removing the effect of amortized items and smoothing mechanisms.The economic pension expense is calculated as follows:Part 5)Your answer: The correct answer was C!Analyze and evaluate the effects of the all-current and temporal methods on the parent company’s balance sheet and income statement; calculate the translation effects of the all-current and temporal methods of foreign currency translation.To ascertain how much of the change in identifiable assets resulted from exchange rate changes rather than an actual asset increase in krona, the year-end rate is used to translate assets into krona.Explanations of terms：(10 points)1. Liquidity preferenceIt refers to the desire that people like to keep money instead of illiquid assets. It’s this desire that forms people’s demand for money.2. Moral suasionIt refers to that a central bank affects the amount and direction of loans of the commercial banks through suasion to the commercial banks and other financial institutions with its specific position and prestige in the financial system so that credit can be regulated and controlled.3. J-curve effectA theory stating that a country’s trade deficit will worsen initially after the depreciation of its currency because higher prices on foreign imports will be greater than the reduced volume of imports.4. Capital asset pricing model (CAPM)An equilibrium model of asset pricing that states that the expected return on a security is a positivelinear function of the security’s sensitivity to charges in the market portfolio’s return.5. Interest rate riskThe risks that the value of financial assets and liabilities will fluctuate in response to changes in market interest rates.Question3：Answer:As for the targets of monetary policy in China, there are doctrines of multiple targets and double targets. The former sets price stability, economic growth, full employment and balance of payments equilibrium as the targets of monetary policy in order to bring about all the targets while the latter sets only price stability and economic growth as the targets of monetary policy. The Law of the People’s Republic of China on the People’s Bank of China passed in March 1995 stipulates "the targets of monetary policy are to stabilize currency in order to promote economic growth". The Law makes it clear that the target of monetary policy of the PBC is to keep the value of RMB stable.The price stability is chosen as the primary target of monetary policy is based on the following considerations; first, price stability is the precondition and basis of normal operation of economy. The primary target of monetary policy is to maintain a moderate money supply and create a sound financial environment of national economic development so that sustained, fast and sound growth of economy will be attained; second, the choice to be made must conform to the reality in China. China is a developing country and has a great demand for funds. It is proved by experience that economic growth or full employment is often brought about at cost of the stability of currency, which leads to serious inflation; Third, according to the reality that monetary disequilibrium often occurs in China, to stabilize currency and maintain the normalization of money circulation is the standpoint of all work to be done by the PBC as well as the key point of carrying out monetary policy.Question4：Answer:The essential features of a corporate bond are relatively simple. The corporate issuer promises to pay a specified percentage of par values (known as the coupon payments) on designated dates, and to repay par or principal value of the bond at maturity. Failure to pay either principal or interest when due constitutes legal default, and court proceedings can be instituted to enforce the contract. Bondholders, as creditors, have a prior legal claim over common and preferred stockholders as to both income and assets of the corporation for the principal and interest.The promises of corporate bond issuers and the rights of investors who buy them are set forth in great detail in contracts called bond indentures. If bondholders were handed the complete indenture, they would have trouble in understanding its language, and even greater difficulty in determining at a particular time whether or not the corporate issuer were keeping all its promises. These problems are solved for the most part by bringing in a corporate trustee as a third part to the contract. The indenture is made out to the corporate trustee as a representative of the interests of bondholders; that is, the trustee acts in a fiduciary capacity for investors who own the bond issue. A corporate trustee is a bond or trust company with a corporate trust department and officers who are experts in performing the functions of a trustee.A bond’s indenture clearly outlines three important aspects; its maturity, itssecurity, and its provisions for retirement.Question5：Answer:The impact of inflation on wealth and income seems more obvious than that on output because of the uncertainty of inflation to large extent. Among different parties some people gain and some lose as shown in the following analysis：(1) CreditorsCreditors are stripped of part of their wealth which is transferred to debtors during inflation period or to put in another way creditors lose part of their purchasing power. It’s the same when people deposit their money at banks or invest in securities if returns or earnings are fixed under the condition of inflation. Inflation does erode people’s income. For example, you deposit $100 at a bank with yearly interest rate of 10%. If price level rises by 15% one year later, you will lose purchasing power by about 5 % though you get $ 110 after one year.(2) DebtorsDebtors can benefit from inflation while creditors with fixed income lost. Governments are inclined to issue too much money, in some economists’ view, because of the effect of wealth redistribution. Usually governments are the largest debtors and issue a huge amount of public debts. Their burden of repaying principal and interest will become lighter when price level rises. So is the case with banks and their customers.(3) TaxpayersInflation reduces people’s real income. For example, the return rate of an investment before tax is 20%, if income tax rate is 30%, the nominal return rate before tax is 14% and the real income is only 3% if inflation is 11%. Under progressive income tax system, the growth of nominal income raises taxpayers’ marginal tax rate. The increase of tax payable exceeds the rise of nominal income, so the real income will decrease, from which national governments can benefit a lot.(4) Money-holdersCash and checking account deposits without interest won’t bring the holders any earnings and the purchasing power of them will decrease with the rise of inflation rates. So economists call this distorted effect of "inflation tax".Question6：Answer:(1) In a non-fixed exchange rate system, reserves allow a central bank to purchase the issued currency, exchanging its assets to reduce its liability. The purpose of reserves is to allow central banks an additional means to stabilize the issued currency from excessive volatility, and protect the monetary system from shock, such as from currency traders engaged in flipping. Large reserves are often seen as strength, as it indicates the backing a currency has. Low or falling reserves may be indicative of an imminent bank run on the currency or default, such as in a currency crisis. Central banks sometimes claim that holding large reserves is a security measure. This is true to the extent that a central bank can prop up its own currency by spending reserves. (This practice is essentially large-scalemanipulation of the global currency market. Central banks have sometimes attempted this in the years since the 1971 collapse of the Bretton Woods system. A few times, multiple central banks have cooperated to attempt to manipulate exchange rates. It is unclear just how effective the practice is. ) But often, very large reserves are not a hedge against inflation but rather a direct consequence of the opposite policy; the bank has purchased large amounts of foreign currency in order to keep its own currency relatively cheap.(2) A country’s foreign exchange reserves consist of the financial assets under the control of the monetary authority that are readily available for balance of payments financing. While the definition of reserves is straightforward, measuring them is more complicated because of the need to account for future claims on reserves, for example, from derivative contracts.(3) The ideal solution would be to net out those claims on reserves that might result in immediate drains on reserves and other elements that might overstate gross reserves, yielding a concept of "usable reserves". To help implement this concept, the IMF developed in 1999 a template for reporting reserves, which is now being used by about 50 countries, including 30 emerging market countries. However, data on usable reserves are only available for a very limited period, so this essay focuses on gross foreign reserve assets net of gold. The main reason why countries hold foreign exchange reserves is to smooth unpredictable and temporary imbalances in international payments. Thus, the basic idea in the theory of the demand for reserves is that a country chooses a level of reserves to balance the macroeconomic adjustment costs incurred if reserves are exhausted (the precautionary motive) with the opportunity cost of holding reserves. Building on this theory, empirical work has identified a relatively stable long-run demand for reserves that is based on a limited set of explanatory variables.。

金融英语考试模拟试题及答案

2012年金融英语考试模拟试题及答案(1)2012年金融英语考试模拟试题及答案(1) SECTION ONE (Compulsory)：Answer all ten questions in this section. Each question carries 1 mark.1. Multiple-choice questions: from the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points)1. Only what happens if the supply is less than demand? （）A. actual price is lower than the equilibrium priceB. actual price is higher than the equilibrium priceC. equilibrium price equivalent to the actual priceD. eliminate the scarcity of goods2. When the Consumer income and established conditions for commodity prices is still, consumers can buy the two commodities to the greatest number of combinations. What did the Line call? （）A. No difference curveB. consumption may LineC. Line and its outputD. enterprise budget line3. Opportunity cost: （）A. Is always measurable in money terms.B. Is an indicator of productivity performance.C. Relates peculiarly to business affairs alone.D. Measures the cost of doing "x" in terms of what else might be done.4. The normal downward slope of demand curves is necessarily explained by: （）A. Growth in the size of the population.B. The adroitness of advertisers.C. Limited spending power.D. Technological advance.5. For a closed two-good economy, the output of the two goods should be at the point where: （）A. The highest indifference curve touches the production possibility curve.B. The lowest indifference curve touches the production possibility curve.C. The indifference curve crosses the production possibility curve.D. The marginal cost curve touches the production possibility curve.6. The "J-curve" shows that following depreciation: （）A. The quantity of exports falls, making the current account balance worse.B. Here is an initial drop in imports but this is later reversed.C. The cost of imports rises immediately from the price effect, worsening the current account bal-ance, but later quantities of imports and exports respond and the current account balance im-proves.D. There is an improvement in the balance of payments so long as the Marshall-Lerner conditions are met.7. Which of the following statements about standby letters of credit is true? :（）A. They can serve as a guarantee to a buyer against a seller defaultingB. They are contrary to the general rule that letters of credit may only be used for the actual movement of 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 date8. What information would you find in a statement of cash flows that you would not be able to get from the other two primary financial statements? （）A. Cash provided by or used in financing activitiesB. Cash balance at the end of the periodC. Total liabilities due to creditors at the end of the periodD. Net income9. Which of these best describes the U.S. Federal Reserve? （）A. Responsible for monetary policy/moneysupplyB. Prints money.C. Keeps the country out of debt.D. Helps people in need.10. What is the basic purpose of profits in our market economy? （）A. Pay for wages and salaries of workers.B. Lead businesses to produce what consumers want.C. Transfer income to the wealthy.D. All of the above.SECTION TWO(Compulsory)：Answer the questions in this section.Reading Comprehension: (10 points)Laura James is the head portfolio manager for National Fund, a U.S. based mutual fund with a well-respected track record. National’s primary focus is on large-cap domestic equities, and the fund has consistently posted high returns relative to its peer group over the past seven years. Much of National’s recent success is from its investments in the U.S. automobileindustry, which have posted extraordinary returns due to a favorable economic scenario. Over the past seven years, the U.S. economy has been expanding, foreign competition has not met consumer expectations, and oil prices have remained low. These factors have contributed to an increase in market share for the domestic producers (at the expense of foreign competitors), and the result has been strong earnings for the top U.S. automakers.Ford Motor Company, in particular, has enjoyed tremendous success in this environment. Ford has capitalized on the trend toward bigger vehicles, particularly sport utility vehicles (SUVs), and has outperformed the other domestic auto makers. Ford jumped on the SUV bandwagon early, and established its dominance. Other domestic auto makers followed, with foreign producers being the last to embrace the trend. Ford has increased its market share in an increasingly competitive industry.James is constantly reviewing economicforecasts and industry data in order to assess the expected performance of the investments in National’s portfolio. Due to changes in economic policy and recent volatility in energy prices, James now believes that current market conditions exhibit signs of contraction (recession). In addition, the automobile sector may be facing additional negative factors. In particular, James has concerns regarding the SUV segment of the automobile industry. Although she believes they will remain popular, she is concerned that the market may be reaching a point of saturation. In addition, volatile energy prices may dampen consumers’enthusiasm for large vehicles. Lastly, foreign competitors have increased efforts toward the production of SUVs, thus “crowding”the market with many new models.Part 1)Assume an industry exhibits tendencies of “regression toward the mean.”This could mean all of the following EXCEPT: （）A. Profits are high and competition increases from other firms in the industry.B. Profits increase as firms enter the industry.C. Profits are low and firms flee the industry.D. Prices could increase or decrease depending on the level of profits.Part 2)In a recessionary environment, an automaker such as Ford would be expected to: （）A. Produce higher end vehicles.B. Maintain the same product mix as 5 years ago.C. Gain market share if it produces high end vehicles.D. Produce lower end vehicles.Part 3)Assume domestic automakers are growing at a rate of –2%. Ford expects to increase its market share by 0.5%. What is Ford’s growthrate? （）A. 1.5%.B. -3.0%.C. -1.5%.D. 3.0%.Part 4)Suppose instead that Ford’s growth of firm sales is expected to be –3% and the growth of industry sales is 1%. What is Ford’s expected change in market share? （）A. 3%.B. -3%.C. -4%.D. 4%.Part 5)Which of the following scenarios would be most likely to have a positive impact on Ford’s market share? （）A. New carmakers enter the market.B. An increase in its marketing budget.C. War with an oil producing country.D. The overall number of cars soldincreases.Explanations of terms：(10 points)1. Official interest rate2. Fiat money3. GDP4. Mean5. Primary marketsQuestion3: What are the basic objectives of economic policies?Question4: What is the Money Market Mutual Funds?Question5: Why Should I Lease Equipment Instead of Buy？Quetion6：Tell us The Practice of China’s Monetary Policy since Economic Reform and Opening up briefly? 1. B A D C A，C A C A BReading Comprehension: (10 points)Part 1)Your answer: B was correct!Profitability in a particular industry attracts competition from other firms, whichthen forces prices down, eventually reducing profits back to a long-run normal level. The opposite holds true for industries experiencing losses.Part 2)Your answer: D was correct!During economic downturns, producers of low-cost products increase their market share at the expense of high-cost producers. This also is true within firms that produce various priced products.Part 3)Your answer: B was incorrect. The correct answer was C!(1 + growth of firm sales) = (1 + growth of industry sales) x (1 + fractional change of market share)= 0.98 x 1.005= 0.9849Growth of firm sales = –1.51%Part 4)Your answer: B was incorrect. The correctanswer was C!0.97 = 1.01 x (1 + x)0.9604 = 1 + x–3.96% = xPart 5)Your answer: The correct answer was B!An increase in its marketing budget.The percentage change in a firm’s market share is directly proportional to the percentage change in its marketing expenditures. An increase in the overall number of cars sold would not necessarily change Ford’s market share. New competition would be negative, as would war, as Ford’s share of the SUV market (gas guzzlers) is large.Explanations of terms：(10 points)1. Official interest rate ：Official interest rate is the rate set by the central bank or monetary authorities. The interest rate is one of levers used by governments to regulate economy.2. Fiat money：Money proclaimed to be money by fiat or government decree is sometimes called fiat money.3. GDP：The monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.4. Mean：A measure of central tendency of the probability distribution of a random variable that equals the weighted average of all possible outcomes using their probabilities as weights.5. Primary markets：Financial markets in which newly issued debt or equity claims are sold to initial buyers by private borrowers to raise funds for durable-goods purchases or new ventures and by governments to finance budget deficits.Question3：Answer:Since the Great Depression of the 1930s, governments have actively pursued the goal of economic stability at full employment. Known as internal balance, this objective has two dimensions; (D a fully employed economy, and ©no inflation—or, more realistically, a reasonable amount of inflation. Nations traditionally have considered internal balance to be of primary importance and have formulated economic policies to attain this goal.Policy makers are also aware of a nation’s balance-of-payments (BOP) position. A nation is said to be an in external balance when it realizes neither BOP deficits nor BOP surpluses. In practice, policy makers usually express external balance in terms of a BOP sub account, such as the current account. In this context, external balance occurs when the current account is neither so deeply in deficit that the home nation is incapable of repaying its foreign debts in thefuture nor so strongly in surplus that foreign nations cannot repay their debts to it. Although nations usually consider internal balance to be the highest priority, they are sometimes forced to modify priority when confronted with large and persistent external imbalances.Question 4Answer:The money markets are wholesale markets where most securities trade in large denominations. This characteristic effectively blocks most individuals from investing directly in these securities. However, the markets usually find a way to correct for such deficiencies, especially when potential customers are available. Money market mutual funds represent one such correction.Money market mutual funds (MMMFs) are funds that aggregate money from a group of small investors and invest it in money market. They have grown enormously popular since their inception in the early 1970s because theyprovide a means for small investors to take advantage of the returns offered on money market securities. These securities would be out of reach to most small investors because of their large minimum denominations.Question5：Answer:(1) Leasing is flexible. Companies have different needs, different cash flow patterns, different irregular streams of income. For example, start-up companies typically are characterized by little cash and limited debt lines. Mature companies might have other needs: to keep debt lines free, to comply with debt covenants, and to avoid committing to equipment that may quickly become obsolete. Therefore, your business conditions—cash flow, specific equipment needs, and tax situation—may help define the terms of your lease. Moreover, a lease provides the use of equipment for specific periods of time at fixed rental payments. Therefore, leasing allows you to bemore flexible in the management of your equipment.(2) Leasing is practical. By leasing, you transfer the uncertainties and risks of equipment ownership to the lessor, which allows you to concentrate on using that equipment as a productive part of your business.(3) Leasing is cost effective. Equipment is costly and some of the costs are unexpected. When you lease, your risk of getting caught with obsolete equipment is lower because you can upgrade or add equipment to best meet your needs.Further, your equipment needs can change over time due to changes in your company, such as diversification. Leasing allows you to stay on the cutting edge of technology. Sophisticated business managers have learned that the primary benefits of higher productivity and profit come from the use of equipment, not owning it.(4) Leasing has tax advantages. Rather thandealing with depreciation schedules and Alternative Minimum Tax (AMT) problems, you, the lessee, simply make the lease payment and deduct it as a business expense.(5) Leasing helps conserve your operating capital. Leasing keeps your lines of credit open. You don’t tie up your cash in equity. Also, you avoid costly down payments. With other advantages such as offbalance sheet financing, leasing helps you better manage your balance sheet.Question6：Answer:Under the traditional planned economic system, there were only such concepts as credit management, cash management and so on. As a comprehensive concept monetary policy came into being in China in the process of economic reform and establishment of the market economy when the experience of money and credit management in western countries was used for reference.China’s monetary policy, in general sense, is the same as the concept of monetary policy in western economics, including such factors as operating instruments, operating targets, intermediate targets and final targets. The impact of monetary policy on China’s macro-economy is produced through the transmission of those factors one by one.(1) The final targets of China’s monetary policyThe present final target of China’s monetary policy is “to maintain a steady currency and promote economic growth". Price stability is the precondition and basis of normal operation of economy. If too much money is issued and inflation occurs, it is hard to control market prices, stabilize people’s living standard and maintain steady economic growth. Economic development in turn provides material base for stabilizing currency. Only by supporting the reasonable demand for productive funds and increasing supply ofcommodities needed in the market can there bea reliable material base for steady currency.(2) The operating and intermediate targets of China’s monetary policyBefore 1984 when the PBC functioned as a central bank, the operating and intermediate targets of monetary policy were credit quota and the amount of cash issue. After 1984, the central bank lending to financial institutions was included in "operating targets" and has become important ever since. In 1993, the Decision on Financial Reform issued by the State Council stipulated that intermediate and operating targets are “money supply, the total credit, and the inter-bank offered rate and bank reserve rate". In 1995, the PBC started its attempt to take M, and M2 as the intermediate target. In 1996, the PBC regularly adopted M and M2 in the intermediate targets of its monetary policy.(3) The monetary policy instrumentsUp to now, credit plan and cash plan havebeen the basic monetary policy instruments in China. But officially set deposit and lending interest rates, basic interest rate, required reserve ratio, bank reserve rate, the central bank lending rate, discount rate, special deposits and open market operations have become monetary policy instruments one after another and played a more and more important role. The Law of the People’s Republic of China on the People’s Bank of China passed in March 1995 stipulates that monetary policy instruments are reserve requirement, basic interest rate, the central bank lending rate, discount rate, open market operations and other monetary policy instruments set by the State Council. So the system of monetary policy instruments that conform to the socialist market economy has been lawfully set up.With the establishment of socialist market economy the gradual shift from direct to indirect monetary policy instruments has greatly improved transmission mechanism ofmonetary policy and effectiveness of macroeconomic management in China. But in a transition period the potency of monetary policy is still subject to various factors as follows：●Government’s intervention. In economic activities, intervention by governments at each level is still strong. It is not rarely seen that local governments often force banks to make loans for the sake of development of local economy, which interferes the independence of the central bank’s monetary policy and blurs monetary policy targets, so monetary policy instruments are partly ineffective.●Less developed markets. In the transition period market mechanism is not perfect while the planned mechanism has lost much of its share. So the vacuum in management of national economy appears. As a result distribution of resources is in disorder and the contradiction in economic structure is obvious. The central government has to increase investment in order to better economic structure, so it’s hard tocontract investment size, wipe out investment expansion of fixed assets and control the money supply. So implementation of monetary policy of the central bank is interfered with.●Imperfect self-constraint mechanism of financial institutions. As China’s financial institutions are still under reform, their behavior is not standardized because of imperfect self-constraint mechanism. So the impact of the central bank’s monetary policy on reserves of financial institutions is not sure and the operating targets can not respond sensitively.●Lack of self-constraint mechanism of enterprises. In order to maintain certain increasing rate of production enterprises in China have a strong demand for funds from outside as they usually have low level of accumulation. At present the supply of funds from outside enterprises mainly comes from commercial bank. It places great pressure on the credit control by commercial banks and thecentral bank and is harmful to the central bank’s control on the money supply.●Less developed financial markets with fewer types and amount of financial assets. As there is fewer types and amount of financial assets it’s difficult for the open market operation to play its role in regulating macro-economy. To sum up, the central bank’s experience in managing macro economy has been richer and its ability to adapt to new environment has become stronger with the deepening of China’s economic and financial reform. Though there are short points existing in both micro-entities and the central bank, it-is true to the fact that the operation of monetary policy in China is becoming more and more experienced. 来源:考。

exam12s经典教材《金融时间序列分析》Ruey S. Tsay 英文第三版2012年试题及答案高清版

Booth School of Business,University of ChicagoBusiness41202,Spring Quarter2012,Mr.Ruey S.TsaySolutions to MidtermProblem A:(34pts)Answer brieﬂy the following questions.Each question has two points.1.Describe two improvements of the EGARCH model over the GARCHvolatility model.Answer:(1)allows for asymmetric response to past positive or negative returns,i.e.leverage eﬀect,(2)uses log volatility to relax parameter constraint.2.Describe two methods that can be used to infer the existence of ARCHeﬀects in a return series,i.e.,volatility is not constant over time.Answer:(1)The sample ACF(or PACF)of the squared residuals of the mean equation,(2)use the Ljung-Box statistics on the squared residuals.3.Consider the IGARCH(1,1)volatility model:a t=σt t withσ2t =α0+β1σ2t−1+(1−β1)a2t−1.Often one pre-ﬁxesα0=0.Why?Also,suppose thatα0=0and the1-step ahead volatility prediction at the forecast origin h is16.2%(annualized),i.e.,σh(1)=σh+1=16.2for the percentage log return.What is the10-step ahead volatility prediction?That is,what isσh(10)?Answer:(1)Fixingα0=0based on the prior knowledge that volatility is mean reverting.(2)σh(10)=16.2.4.(Questions4to8)Consider the daily log returns of Amazon stockfrom January3,2007to April27,2012.Some summary statistics of the returns are given in the attached R output.Is the expected(mean) return of the stock zero?Why?Answer:The data does not provide suﬃcient evidence to suggest that the mean return is not zero,because the95%conﬁdence interval con-tains zero.5.Let k be the excess kurtosis.Test H0:k=0versus H a:k=0.Writedown the test statistic and draw the conclusion.1Answer:t-ratio =9.875√24/1340=73.79,which is highly signiﬁcant com-pared with χ21distribution.6.Are there serial correlations in the log returns?Why?Answer:No,the Ljung-Box statistic Q (10)=10.69with p-value 0.38.7.Are there ARCH eﬀects in the log return series?Why?Answer:Yes,the Ljung-Box statist of squared residuals gives Q (10)=39.24with p-value less than 0.05.8.Based on the summary statistics provided,what is the 22-step ahead point forecast of the log return at the forecast origin April 27,2012?Why?Answer:The point forecast r T (22)=0because the mean is not signif-icantly diﬀerent from zero.[Give students 1point if they use sample mean.]9.Give two reasons that explain the existence of serial correlations in ob-served asset returns even if the true returns are not serially correlated.Answer:Any two of (1)bid-ask bounce,(2)nonsynchronous trading,(3)dynamic dependence of volaitlity via risk premuim.10.Give two reasons that may lead to using moving-average models inanalyzing asset returns.Answer:(1)Smoothing (or manipulation),(2)bid-ask bounce in high frequency returns.11.Describe two methods that can be used to compare diﬀerent modelsfor a given time series.Answer:(1)Information criteria such as AIC or BIC,(2)backtesting or out-of-sample forecasting.12.(Questions 12to 14)Let r t be the daily log returns of Stock A.Assume that r t =0.004+a t ,where a t =σt t with t being iid N(0,1)random variates and σ2t =0.017+0.15a 2t −1.What is the unconditionalvariance of a t ?Answer:Var(a t )=0.0171−0.15=0.02.13.Suppose that the log price at t =100is 3.912.Also,at the forecastorigin t =100,we have a 100=−0.03and σ100=pute the21-step ahead forecast of the log price (not log return)and its volatility for Stock A at the forecast origin t =100.Answer:r 100(1)=0.004so that p 100(1)=3.912+0.004=3.916.Thevolatility forecast is σ2100(1)= 0.017+0.15(−0.03)2=pute the 30-step ahead forecast of the log price and its volatilityof Stock A at the forecast origin t =100.Answer:p 100(30)=3.912+0.004×30=4.032and the voaltility is the unconditional stantard error √0.02=0.141.15.Asset volatility has many applications in ﬁnance.Describe two suchapplications.Answer:Any two of (1)pricing derivative,(2)risk management,(3)asset allocation.16.Suppose the log return r t of Stock A follows the model r t =a t ,a t =σt t ,and σ2t =α0+α1a 2t −1+β1σ2t −1,where t are iid N(0,1).Under whatcondition that the kurtosis of r t is 3?That is,state the condition under which the GARCH dynamics fail to generate any additional kurtosis over that of t .Answer:α1=0.17.What is the main consequence in using a linear regression analysis whenthe serial correlations of the residuals are overlooked?Answer:The t -ratios of coeﬃcient estimates are not reliable.Problem B .(30pts)Consider the daily log returns of Amazon stock from January 3,2007to April 27,2012.Several volatility models are ﬁtted to the data and the relevant R output is attached.Answer the following questions.1.(2points)A volatility model,called m1in R,is entertained.Write down the ﬁtted model,including the mean equation.Is the model adequate?Why?Answer:ARCH(1)model.r t =0.0018+a t ,a t =σt t with t being iidN(0,1)and σ2t =7.577×10−4+0.188a 2t −1.The model is inadequatebecause the normality assumption is clearly rejected.2.(3points)Another volatility model,called m2in R,is ﬁtted to the returns.Write down the model,including all estimated parameters.3Answer:ARCH(1)model.r t=4.907×10−4+a t,a t=σt t,where t∼t∗3.56with t∗vdenoting standardized Student-t distribution with v degreesof freedom.The volatility equation isσ2t =7.463×10−4+0.203a2t−1.3.(2points)Based on theﬁtted model m2,test H0:ν=5versus H a:ν=5,whereνdenotes the degrees of freedom of Student-t distribution.Perform the test and draw a conclusion.Answer:t-ratio=3.562−50.366=−3.93,which compared with1.96is highlysigniﬁcant.If you compute the p-value,it is8.53×10−5.Therefore, v=5is rejected.4.(3points)A third model,called m3in R,is also entertained.Writedown the model,including the distributional parameters.Is the model adequate?Why?Answer:Another ARCH(1)model.r t=0.0012+a t,a t=σt t,where t are iid and follow a skew standardized Student-t distribution with skew parameter1.065and degrees of freedom3.591.The volatility equationisσ2t =7.418×10−4+0.208a2t−1.Ecept for the insigicant mean value,theﬁtted ARCH(1)model appears to be adequate based on the model checking statistics shown.5.(2points)Letξbe the skew parameter in model m3.Does the estimateofξconﬁrm that the distribution of the log returns is skewed?Why?Perform the test to support your answer.Answer:The t-ratio is1.065−10.039=1.67,which is smaller than1.96.Thus,the null hypothesis of symmetric innovations cannot be rejected at the 5%level.6.(3points)A fourth model,called m4in R,is alsoﬁtted.Write downtheﬁtted model,including the distribution of the innovations.Answer:a GARCH(1,1)model.r t=0.0017+a t,a t=σt t,where t are iid and follow a skew standardized Student-t distribution with skew parameter1.101and degrees of freedom3.71.The volatility equationisσ2t =1.066×10−5+0.0414a2t−1+0.950σ2t−1.7.(2points)Based on model m4,is the distribution of the log returnsskewed?Why?Perform a test to support your answer.Answer:The t-ratio is1.101−10.043=2.349,which is greater than1.96.Thus,the distribution is skew at the5%level.48.(2points)Among models m1,m2,m3,m4,which model is preferred?State the criterion used in your choice.Answer:Model4is preferred as it has a smaller AIC value.9.(2points)Since the estimatesˆα1+ˆβ1is very close to1,we consideran IGARCH(1,1)model.Write down theﬁtted IGARCH(1,1)model, called m5.Answer:r t=a t,a t=σt t,whereσ2t =3.859×10−5+0.85σ2t−1+0.15a2t−1.10.(2points)Use the IGARCH(1,1)model and the information providedto obtain1-step and2-step ahead predictions for the volatility of the log returns at the forecast origin t=1340.Answer:From the outputσ21340(1)=σ21341=3.859×10−5+0.85×(0.02108)2+0.15(.146)2=0.00361.Therefore,σ21340(2)=3.859×10−5+σ2 1340(1)=0.00365.The volatility forecasts are then0.0601and0.0604,respectively.11.(2points)A GARCH-M model is entertained for the percentage logreturns,called m6in the R output.Based on theﬁtted model,is the risk premium statistical signiﬁcant?Why?Answer:The risk premium parameter is−0.112with t-ratio−0.560, which is less than1.96in modulus.Thus,the risk premium is not statistical signiﬁcant at the5%level.12.(3points)Finally,a GJR-type model is entertained,called m7.Writedown theﬁtted model,including all parameters.Answer:This is an APARCH model.The model is r t=0.0014+a t,a t=σt t,where t are iid and follow a skew standardized Student-tdistribution with skew parameter1.098and degrees of freedom3.846.The volatility equation isσ2 t =7.583×10−6+0.0362(|a t−1|−0.478a t−1)2+0.953σ2t−1.13.(2points)Based on theﬁtted GJR-type of model,is the leverage eﬀectsigniﬁcant?Why?Answer:Yes,the leverage parameterγ1is signﬁicantly diﬀerent from zero so that there is leverage eﬀect in the log returns.5Problem C.(14pts)Consider the quarterly earnings per share of Abbott Laboratories(ABT)stock from1984.III to2011.III for110observations.We analyzed the logarithms of the earnings.That is,x t=ln(y t),where y t is the quarterly earnings per share.Two models are entertained.1.(3points)Write down the model m1in R,including residual variance.Answer:Let r t be the log earnings per share.Theﬁtted model is=0.00161.(1−B)(1−B4)r t=(1−0.565B)(1−0.183B4)a t,σ2a2.(2points)Is the model adequate?Why?Answer:No,the Ljung-Box statistics of the residuals give Q(12)=25.76with p-value0.012.3.(3points)Write down theﬁtted model m2in R,including residualvariance.Answer:Theﬁtted model is=0.00144.(1−B)(1−B4)r t=(1−0.470B−0.312B3)a t,σ2a4.(2points)Model checking of theﬁtted model m2is given in Figure1.Is the model adequate?Why?Answer:Yes,the model checking statistics look reasonable.5.(2points)Compare the twoﬁtted model models.Which model ispreferred?Why?Answer:Model2is preferred.It passes model checking and has a smaller AIC value.6.(2points)Compute95%interval forecasts of1-step and2-step aheadlog-earnings at the forecast origin t=110.Answer:1-step ahead prediction:0.375±1.96×0.038,and2-step ahead prediction:0.0188±1.96×0.043.(Some students may use2-step ahead prediction due to the forecast origin confusion.)Problem D.(22pts)Consider the growth rate of the U.S.weekly regular gasoline price from January06,1997to September27,2010.Here growth rate is obtained by diﬀerencing the log gasoline price and denoted by gt in R output.The growth rate of weekly crude oil from January03,1997to September24,2010is also obtained and is denoted by pt in R output.Note that the crude oil price was known3days prior to the gasoline price.61.(2points)First,a pure time series model is entertained for the gasolineseries.An AR(5)model is selected.Why?Also,is the mean of the gtseries signiﬁcantly diﬀerent from zero?Why?Answer:An AR(5)is selected via the AIC criterion.The mean of g tis not signiﬁcantly diﬀerent from zero based on the one-sample t-test.The p-value is0.19.2.(2points)Write down theﬁtted AR(5)model,called m2,includingresidual variance.Answer:Theﬁtted model is=0.000326.(1−0.507B−0.079B2−0.136B3+0.036B4+0.086B5)g t=a t,σ2a3.(2points)Since not all estimates of model m2are statistically signiﬁ-cant,we reﬁne the model.Write down the reﬁned model,called m3.Answer:Theﬁtted model is=0.000327.(1−0.504B−0.074B2−0.122B3+0.101B5)g t=a t,σ2a4.(2points)Is the reﬁned AR(5)model adequate?Why?Answer:Yes,the Ljung-Box statistics of the residuals give Q(14)=10.27with p-value0.74,indicating that there are no serial correlationsin the residuals.5.(2points)Does the gasoline price show certain business-cycle behavior?Why?Answer:Yes,theﬁtted AR(5)polynomial contains compplex solutions.6.(3points)Next,consider using the information of crude oil price.Writedown the linear regression model,called m4,including R2and residualstandard error.Answer:Theﬁtted linear regression model isg t=0.287p t+ t,σ =0.0184,and the R2of the regression is33.66%.7.(2points)Is theﬁtted linear regression model adequate?Why?Answer:No,because the residuals t are serially correlated based onthe Ljung-Box test.78.(3points)A linear regression model with time series errors is enter-tained and insigniﬁcant parameters removed.Write down theﬁnalmodel,including allﬁtted parameters.Answer:The model is(1−0.404B−0.164B2−0.096B3+0.101B5)(g t−0.191p t)=a t,σ2=0.000253.a9.(2points)Model checking shows that theﬁttedﬁnal model has noresidual serial correlations.Based on the model,is crude oil pricehelpful in predicting the gasoline price?Why?Answer:Yes,because theﬁtted coeﬃcient of p t is signﬁcantly diﬀerentfrom zero.10.(2points)Compare the pure time series model and the regression modelwith time-series errors.Which model is preferred?Why?Answer:The regression model with time series error is preferred as ithas a smaller AIC criterion.8。

金融英语模拟题(一)T1P1-Listening

金融英语模拟题（一）Part One ListeningSection One (10%)Directions: In this section you will hear 10 short statements. Each statement will be spoken only once. After each statement there will be a pause. During the pause, you must read the four suggested answers marked a, b, c and d, and decide which is the best answer. Now you will hear the example:She went to the bank with Mr. Smith.You will read:A. She went home.B. She liked Mr. smith.C.She went to the bank.D.She went to Mr. Smith's house.Statement C, "She went to the bank" is the closest in meaning to the statement "She went to the bank with Mr. Smith." Therefore, you should choose answer C. Now listen to the statements.1.A. The central bank controls many factors that affect the success of banking supervision.B. The success of banking supervision depends on the controls of the central bank.C. The success of banking supervision relies on many factors that are not under the control of the central bank.D. Many factors under the control of the central bank result in the success of banking supervision.2.A. You cannot sign your name on the upper left corner that does not comply with the agreement.B. Your signature does not agree with the specimen signature on the upper left corner.C. The signature on the upper left corner is not the countersign in theagreement.D. You cannot agree with the signature on the upper left corner.3.A. The Chinese banks will not come to compete with the foreign banks inRenminbi business.B. Foreign banks will be allowed to do Renminbi business which is a challenge to the Chinese banks.C. It will be a real great challenge to the Chinese banks when the foreign banks have the right to do Renminbi business.D. In order to have real competition with the Chinese banks, foreign banks should be allowed to do Renminbi business.4.A. I remitted the money to you after the sale of my stocks.B. Your bank account had been credited with the remittance since I sold my shares last week.C. The money had already been credited to your account last week after I sold my shares.D. The money had not been remitted to you since I failed to sell my stocks last week.5.A. The bank makes profits only from its own money.B. The bank makes profits not only from the deposits but also from its own money.C. The bank makes profits with special obligations to depositors.D. The bank has special obligation to make profits.6.A. We thank you for your doing kindness to us.B. We hope you send us your check as soon as possible.C. We thank you because you provide us convenience in checking.D. You will have to pay us $50,000.7.A. The Chinese economists made a proposal that banks' savings interest rates should further be lowered.B. The Chinese economists thought banks' savings interest rates should be improved.C. The Chinese economists believed that banks' savings interest rates should be maintained.D. The Chinese economists suggested that banks' savings interest rates should be kept.8.A. We are the credit holders.B. We are the bank who can encash the card.C. We are the bank who can stop your lost card.D. We are the bank who can find your lost card.9.A. In the foreign exchange market, exchange rates are quoted by the sellers and buyers.B. In the foreign exchange market, exchange rates are quoted by commercial banks.C. In the foreign exchange market, selling and buying of foreign exchange decide exchange rates.D. In the foreign exchange market, exchange rates are fixed by governments.10.A. The bank has the right to charge you fees if your check has bounced.B. The bank will not charge you any service commission even if your check returned.C. No one reserves the right to impose a service charge for returned cheques.D. The bank has the right to impose a charge for encashed cheques.Section Two (10%)Directions: In this section, you will hear 10 short conversations. At the end of each conversation a question will be asked about what was said. The conversations and questions will be spoken only once. During the pause, you must read the four suggested answers marked a, b, c, and d, and decide which is the best answerNow you will hear :M: Does our bank have a direct correspondent relationship with the Bradalys' Bank?W:No, we don't. So we have to advise this L/C via another bank.Q: Which of the following is right?Now you will read:A. We can advise this L/C to the Bradlays' Bank.B. The Bradlays' Bank is our correspondent.C. The L/C has to be advised by a third bank.D. We should advise this L/C by ourselves.From the conversation we know that we have to advise this L/C via another bank. The best answer is C. Therefore you should choose answer C.11.A. Her account number is 60789410B. Her account number is 60798410C. Her account number is 60798401D. Her account number is 6078914012.A. in the safeB. in the drawerC. on the deskD. in the box13.A. 1.89%B. 1.98%C. 8.19%D. none14.A. to open an account with the bankB. to exchange moneyC. to check if the remittance has arrivedD. to remit some money to her brother Tony Waller15.A. employee and bossB. broker and bank clerkC. two bank clerksD. bank clerk and customer16.A. 8 hoursB. 10 hoursC. 12 hoursD. 24hours17.A. one monthB. twelve monthsC. six monthsD. half a month18.A. draw money from her account through ATM.B. write her secret code on the card.C. forget her password.D. ask somebody to pick up her card.19.A. US$ 24,580B. US$ 28,450C. US$ 45,280D. US$ 25,48020.A. Special risks will be excluded.B. You have to pay more money for the inclusion of all risks.C. Exclusion of the special risks means more money you have to pay.D. You have to pay more premium to include a special risk.Section Three (10%)Directions: In this section, you will hear 3 short passages. At the end of each passage you will hear some questions about what was said. The passages and questions wi1l be spoken only once. During the pause, you must read the four suggested answers marked a, b, c, and d, and decide which is the best answerQuestions 21--23 are based on passage 121.A. threeB. fourC. fiveD. six22.A. one-dollar billB. five-dollar billC. ten-dollar billD. twenty-dollar bill23.A. by checks and fund transfersB. by CHAPS and fund transfersC. by CHIPS and fund transfersD. by SWIFT and fund transfersQuestions 24-26 are based on passage 224.A. They will buy houses.B. They will buy cars.C. They will postpone building a new plant.D. They will hire more workers.25.A. because they affect consumers' willingness to spend or save.B. because they affect businesses' investment decisions.C. because interest rates are the cost of borrowings.D. both a and b.26.A. mortgage interest ratesB. car loan ratesC. interest rates on many different types of bondsD. current interest ratesQuestions 27-30 are based on Passage 327.A. corporateB. interbankC. mortgageD. syndicate28.A. pay all attentions to a specific area of lendingB. consider someone more important than the otherC. handle loan applications based on hard and fast ruleD. try to build up a well-balanced loan portfolio29.A. prudenceB. profitabilityC. liquidityD. safety30.A. to ensure healthy growth for the bankB. to outperform the competition in financial industryC. to make the profitsD. to achieve specific business targets。

金融英语试题及答案

金融英语试题及答案一、选择题（每题2分，共20分）1. 以下哪个选项是“股票”的正确英文表达？A. StockB. BondC. DerivativeD. Option答案：A2. 金融英语中，“利率”通常指的是什么？A. Interest RateB. Exchange RateC. Inflation RateD. Stock Price答案：A3. 在金融领域，“风险管理”的英文表达是什么？A. Risk ManagementB. Asset ManagementC. Fund ManagementD. Portfolio Management答案：A4. 以下哪个选项不是金融工具？A. SharesB. BondsC. LoansD. Software答案：D5. “外汇”在金融英语中通常指的是什么？A. Foreign CurrencyB. Foreign ExchangeC. Foreign TradeD. International Market答案：B6. 金融英语中，“通货膨胀”的英文表达是什么？A. InflationB. DeflationC. HyperinflationD. Stagflation答案：A7. “信用评级”在金融英语中如何表达？A. Credit RatingB. Credit ScoreC. Credit ReportD. Credit History答案：A8. 以下哪个选项是“期货”的正确英文表达？A. FutureB. ForwardC. OptionD. Swap答案：B9. “资产负债表”在金融英语中如何表达？A. Balance SheetB. Income StatementC. Cash Flow StatementD. Statement of Changes in Equity答案：A10. 金融英语中，“市场分析”的英文表达是什么？A. Market AnalysisB. Financial AnalysisC. Economic AnalysisD. Risk Analysis答案：A二、填空题（每题2分，共20分）1. 在金融英语中，"_____" 指的是一种金融衍生品，允许持有者在特定时间内以特定价格购买或出售资产。

金融英语试题及答案

金融英语试题及答案### 金融英语试题及答案#### 一、选择题（每题2分，共10分）1. Which of the following is not a type of financial market?A. Money MarketB. Capital MarketC. Primary MarketD. Insurance Market答案：D2. In finance, what does "leverage" refer to?A. The use of borrowed funds to increase the potential return of an investmentB. The amount of money a company has in its cash reservesC. The ability of a company to meet its short-term obligationsD. The ratio of a company's assets to its liabilities答案：A3. What is the term for the difference between the buying price and the selling price of a security?A. SpreadB. YieldC. DividendD. Margin答案：A4. Which of the following is not a risk management strategy?A. DiversificationB. HedgingC. ArbitrageD. Insurance答案：C5. What is the term used to describe the risk-free rate of return?A. Nominal RateB. Real RateC. Expected RateD. Risk-Free Rate答案：D#### 二、填空题（每题2分，共10分）1. The process of converting short-term debt into long-term debt is known as _________.答案：Refinancing2. A financial instrument that derives its value from an underlying asset is called a _________.答案：Derivative3. The _________ is the difference between the market value and the book value of an asset.答案：Economic Value Added (EVA)4. A _________ is a financial statement that shows a company's cash inflows and outflows over a period of time.答案：Cash Flow Statement5. The _________ is the rate at which one currency can be exchanged for another.答案：Exchange Rate#### 三、简答题（每题5分，共20分）1. Explain the concept of "equity" in finance.答案：Equity refers to the ownership interest or the value of an owner's investment in an asset, business, or property, calculated as the difference between the asset value and the outstanding liabilities.2. What is the role of a central bank in a financial system?答案：A central bank plays a crucial role in the financial system by implementing monetary policy, regulating financial institutions, maintaining price stability, and ensuring the smooth functioning of the payment systems.3. Describe the function of a stock exchange.答案：A stock exchange is a marketplace where securities can bebought and sold. It provides a platform for companies toraise capital by issuing shares and for investors to trade those shares.4. What are the main components of a balance sheet?答案：The main components of a balance sheet are assets, liabilities, and equity. Assets represent what a company owns, liabilities represent what a company owes, and equity represents the net worth of the company, which is the difference between assets and liabilities.#### 四、论述题（每题15分，共30分）1. Discuss the importance of financial regulation and its impact on the stability of the financial system.答案：Financial regulation is crucial for maintaining thestability of the financial system. It ensures transparency, reduces systemic risk, and protects investors and consumers. Effective regulation can prevent market abuses, promote fair competition, and contribute to economic growth.2. Explain the concept of "leverage" and its implications for investors.答案：Leverage is the use of borrowed funds to amplify potential returns on an investment. While it can increase gains, italso magnifies losses. Investors must carefully manage leverage to balance potential rewards with the heightenedrisk of significant financial losses.。

金融英语业务知识练习试卷1(题后含答案及解析)

金融英语业务知识练习试卷1(题后含答案及解析) 题型有： 2. 单项选择题单项选择题1．Which of the following would be considered a disadvantage of allocating resources using a market system?______.i. Income will tend to be unevenly distributed.ii. Significant unemployment may occur.iii. The wastage of scarce economic resources cannot be prevented.iv. A misallocation of resources may occur where there is a discrepancy between private and social costs.A．iv onlyB．i and iiiC．ii, iii and ivD．i and iv正确答案：C解析：答案为C项。

尽管市场经济有众多优势，能够实现资源的有效配置，但它也有缺陷，如广义收入的分配问题、缺乏公共物品以及对外在性问题的忽略等。

本题除i不是市场经济进行资源配置的缺陷外，其余都是。

故本题选C项。

知识模块：金融英语业务知识2．Which of the following is not a factor of production according to economists?______.A．LandB．LabourC．EntrepreneurshipD．Trademark正确答案：D解析：答案为D项。

factor of production“生产要素”。

经济学家一般将其划分为劳动(labour)、土地(land)、资本(capital)和企业家才能(entrepreneurship)。

CFA考试(Level Ⅰ)历年真题详解 2012 Level Ⅰ Mock ExamAfternoon Session

2012 Level Ⅰ Mock Exam:Afternoon SessionQuestions 1 through 18 relate to Ethical and Professional Standards1．As a condition of his employment with an investment bank, Abasi Hasina, CFA, was required to sign an employment contract, including a non-compete clause restricting him from working for a competitor for three years after leaving the employer. After one year, Hasina quits his job for a comparable position with an investment bank in a country where non-compete clauses are illegal. Lawyers with whom he consulted prior to taking the new position determined thenon-compete clause was a violation of human rights and thus illegal. Did Hasina most likely violate the CFA Institute Code of Ethics?A．YesB．No, because the non-compete clause violates his human rightsC．No, because the non-compete clause is illegal in the new country of employment【答案】A【解析】"Code of Ethics and Standards of Professional Conduct," CFA Institute2012 Modular Level Ⅰ, Vol.1, p.15Study Session 1-1-cExplain the ethical responsibilities required by the Code and Standards, including the multiple sub-sections of each standard."Guidance for Standards Ⅰ-Ⅶ," CFA Institute2012 Modular Level Ⅰ, Vol.1, pp.19-21,46-47Study Session 1-2-aDemonstrate and explain the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity.A is correct because by failing to adhere to the non-compete clause he agreed to abide by when signing his employment contract, Hasina shows a lack of professional integrity toward his employer. This behavior reflects poorly on the good reputation of members and is a violation of the Code of Ethics, which states that members and candidates must act with integrity, and Standard Ⅰ (D) Misconduct, which states that members and candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity, or competence. The Code of Ethics at times requires a member or candidate to uphold a higher standard than that required by law, rule, or regulation, or in this case the strict application of the employment agreement.2．Benefits of compliance with the CFA Institute Global Investment Performance Standards (GIPSR)least likely include:A．strengthening of internal controls.B．participation in competitive bidding.C．elimination of in-depth due diligence for investors.【答案】C【解析】"Introduction to the Global Investment Performance Standards (GIPS@)," CFA Institute2011 Modular Level Ⅰ, Vol.1, pp.172-173Study Session 1-3-aExplain why the GIPS standards were created, what parties the GIPS standards apply to, and who is served by the standards.C is correct because compliance with the GIPS standards does not eliminate the need for in-depth due diligence on the part of the investor.3．Who is most likely responsible for claiming and maintaining compliance with the CFA Institute Global Investment Performance Standards (GIPSY)?A．Independentverification firmsB．The firm claimingcomplianceC．The performance measurement department【答案】B【解析】"Introduction to the Global Investment Performance Standards (GIPS@)," CFA Institute2012 Modular Level Ⅰ, Vol.1, p.173Study Session 1-3-cExplain the requirements for verification.B is correct because firms that claim compliance with the GIPS standards are responsible for their claim of compliance and for maintaining that compliance. 4．Mariam Musa, CFA, head of compliance at Dunfield Brokers, questions her colleague Omar Kassim, a CFA candidate and a research analyst, about his purchase of shares in a company for his own account immediately before he publishes a "buy" recommendation. He defends his actions by stating he has done nothing wrong because Dunfield does not have any personal trading policies in place. The CFA Institute Code of Ethics and Standards of Professional Conduct were most likelyviolated by:A．only Musa.B．only Kassim.C．both Musa and Kassim.【答案】C"Guidance for Standards Ⅰ-Ⅶ," CFA Institute2012 Modular Level I, Vol.1, pp.101-103,131Study Session 1-2-bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.C is correct because both Musa and Kassim violated the Standards of Professional Conduct.Musa violated Standard Ⅳ (C) Responsibilities of Supervisors by not ensuring policies were in place to prevent violations of the Code and Standards (in this case Standard Ⅵ (B) Priority of Transactions) by someone subject to her supervision. As the head of compliance, Musa supervised Kassim and must meet her supervisory responsibilities outlined in the Standards of Professional Conduct. Kassim violated Standard Ⅵ (B) Priority of Transactions in that he did not give sufficient priority to Dunfield's clients before trading on his recommendation.5．Zhao Xuan, CFA, is a sell side investment analyst. While at a software industry conference, Zhao hears rumors that Green Run Software may have falsified its financial results. When she returns to her office, Zhao conducts a thorough analysis of Green Run. Based on her research, including discussions with some of Green Run's customers, Zhao is convinced that Green Run's reported50% increase in net income during recent quarters is completely fictitious. So far, however, Zhao is the only analyst suspicious about Green Run's reported earnings. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, the least appropriate action for Zhao is to:A．report her suspicions to Green Run's management.B．do nothing, until other analysts support her analysis.C．recommend her clients sell their Green Run shares immediately.【答案】BCFA Institute Standards2012 Modular Level Ⅰ, Vol.1, pp.49-51 Study Session 1-2-cRecommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.B is correct because the analyst has conducted thorough research that indicates the company falsified its financial results, and she should request the company address this issue publicly as recommended by Standard Ⅱ (A) Material Nonpublic Information. If a member or candidate determines that information is material, the member or candidate should make reasonable efforts to achieve public dissemination of the information. This effort usually entails encouraging the issuer company to make the information public. If public dissemination is not possible, the member or candidate must communicate the information only to the designated supervisory and compliance personnel within the member's or candidate's firm and must not take investment action on the basis of the information.6．Richard Cardinal, CFA, is the founder of Volcano Capital Research, an investment management firm whose sole activity is short selling. Cardinal seeks out companies whose stocks have had large price increases. Cardinal also pays several lobbying firms to update him immediately on any legislative or regulatory changes that may impact his target companies. Cardinal sells short those target companies he estimates are near the peak of their sales and earnings and that his sources identify as facing legal or regulatory challenges. Immediately after he sells a stock, Cardinal conducts a public relations campaign to disclose all of the negative information he has gathered on the company, even if the information is not yet public. Which of Cardinal's following actions is least likely to be in violation of the CFA Institute Standards of Professional Conduct? A．Selling stock shortB．Trading on information from lobbyistsC．Disclosing information about target companies【答案】ACFA Institute Standards2012 Modular Level Ⅰ, Vol.1, pp.59-60,108Study Session 1-2-bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.A is correct because selling stock short is a management strategy and does not necessarily violate any aspect of the Code and Standards.7．Kirsten Kelso, CFA, is a research analyst at an independent research firm. Kelso is part of a team of analysts who focus on the automobile industry. Recently, Kelso disagreed with two research sell recommendations written by her team even though she felt confident the research process was properly conducted. In a webcast open to all institutional but not retail clients, Kelso states"even though my name is on the sell reports, these stocks are a buy in part because sales and share prices for both auto companies will rise significantly due to strong demand for their vehicles." Kelso's actions would least likely violate which of the following CFA Institute Standards of Professional Conduct? A．Fair DealingB．Communication with ClientsC．Diligence and Reasonable Basis【答案】C【解析】CFA Institute Standards2012 Modular Level Ⅰ, Vol.1, pp.71,110,118Study Session 1-2-cRecommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.C is correct because the recommendation is based on a reasonable and adequate research process, so the analyst could follow the research team's opinion, as required by Standard V (A) Diligence and Reasonable Basis.8．Gardner Knight, CFA, is a product development specialist at an investment bank. Knight is responsible for creating and marketing collateralized debt obligations (CDOS) consisting of residential mortgage bonds. In the marketing brochure for his most recent CDO, Knight provided a list of the mortgage bonds that the CDO was created from. The brochure also states "an independent third party, the collateral manager, had sole authority over the selection of all mortgage bonds used as collateral in the CDO." However, Knight met with the collateral manager and helped her select the bonds for the (:DO. Knight is least likely to be in violation of which of the following (:FA Institute Standards of Professional Conduct?A．SuitabilityB．Conflicts of InterestC．Client Communication【答案】A【解析】CFA Institute Standards2012 Modular Level Ⅰ, Vol.1, pp.78,116-117,123-125Study Session 1-2-bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.A is correct because there is no indication the investment is unsuitable for investors and in violation of Standard Ⅲ (C) Suitability.9．Monique Gretta, CFA, is a research analyst at East West Investment Bank. Previously, Gretta worked at a mutual fund management company and has a long-standing client relationship with the managers of the funds and their institutional investors. Gretta often provides fund managers, who work for Gretta's former employer, with draft copies of her research before disseminating the information to all of the bank's clients. This practice has helped Gretta avoid several errors in her reports, and she believes it is beneficial to the bank's clients, even though they are not aware of this practice. Regarding her research, Gretta least likelyviolated the CFA Institute Code of Ethics and Standards of Professional Conduct because:A．her report is a draft.B．this practice benefits all clients.C．the long-standing client relationships are not disclosed.【答案】C【解析】CFA Institute Standards2012 Modular Level Ⅰ, Vol.1, pp.71-72Study Session 1-2-cRecommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.C is correct because the analyst does not violate any of the Standards of Professional Conduct by having long-standing client relationships and generally is not required to disclose such relationships. However, the analyst is not treating all clients fairly as required by Standard III (B) Fair Dealing when disseminating investment recommendations; disclosure of the relationship with long-standing clients is not the issue. The analyst has advantaged some clients over others by providing advance information, and all clients do not have a fair opportunity to act on the information within the draft report. Members and candidates may differentiate their services to clients, but different levels of service must not disadvantage or negatively affect clients.10．Colin Caldwell, CFA, is the chief investment officer of Northwest Mutual Fund, whose investment objective is to invest in fixed income emerging market securities. Caldwell allocates the fund's assets primarily to bonds of commodity producers in emerging markets and invests in a combination of several different investments to ensure an acceptable level of risk. The allocation is clearly disclosed in all fund communications. High volatility in the commodities markets at the start of the year makes Caldwell pessimistic about returns, so he shifts the fund into emerging market and U.S. government securities, positions he maintains at the end of the year. This change is noted in the next annual report to fund shareholders. Caldwell's investment change least likely violated the CFA Institute Code of Ethics and Standards of Professional Conduct concerning: A．diversification.B．communication with clients.C．investments outside his mandate.【答案】A【解析】"Guidance for Standards Ⅰ-Ⅶ," CFA Institute2012 Modular Level Ⅰ, Vol.1, pp.78-81,116-117Study Session 1-2-aDemonstrate and explain the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity.A is correct because the investment officer has invested in a combination of several different investments to ensure an acceptable level of risk rather than having all assets in a single investment, and he has sought a reasonable amount of diversification. However, the shift into emerging market and U.S. government securities was communicated to clients in the annual report and not on an ongoing basis, in violation of Standard V (B) Communication with Clients and Prospective Clients. Additionally, the investment officer has not followed the investment style previously communicated to fund investors (i.e., to invest in fixed income emerging market securities), specifically, when he invested in U.S. government securities, a violation of Standard Ⅲ (C) Suitability.11．Robin Herring, CFA, is a government bond research analyst at an independent credit rating agency. A competitor credit rating agency just downgraded the bonds of a government Herring follows. Herring notes all of the information in the competitor's report was covered in his analysis published last week. In the past, Herring has been slow to downgrade bonds, so he starts to doubt his own analysis after seeing the competitor's report. Herring decides to reissue his credit rating of this government bond and match the competitor's downgrade. In his revised report, Herring states that new information has been made available to justify the downgrade. Herring posts the revision on the credit rating agency's website and provides it by e-mail to all clients who received the original. Herring's rating change least likely violated which of the following CFA Institute Code of Ethics and Standards of Professional Conduct?A．Fair DealingB．Communication with ClientsC．Diligence and Reasonable Basis【答案】A【解析】CFA Institute Standards2012 Modular Level Ⅰ, Vol.1, pp.38,71-72,107-108,116-117Study Session 1-2-bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.A is correct because the analyst has dealt fairly with all clients by sending them an e-mail and posting his rating change on the credit rating agency's website when making material changes to his prior investment recommendation; therefore, he has not violated Standard Ⅲ (B) Fair Dealing. Clients should be treated fairly when material changes in a member's or candidate's prior investment recommendations are disseminated, which has been done. 12．Dorian Solot, CFA, is responsible for a team of research analysts at Apac Bank, located in a country with strict laws prohibiting intellectual property transfers.Solot believes the work of one of her analysts, Blaine Paddock, CFA, is not completed as carefully and thoroughly as it should be. Solot completely reviews all of Paddock's research and confirms her suspicions. Solot then confronts Paddock about his poor quality research and tells him he can leave Apac voluntarily or be fired. Paddock chooses to leave the bank, walking out with his personal papers and research notes that were created prior to his joining Apac. Subsequently, Paddock uses this intellectual property to help establish ahigh-net-worth investment advisory firm. When a prospective client asks Paddock if he left Apac because of questions on the quality of his work, Paddock says it was to start his own business. Paddock least likely violated the CFA Institute Standards of Professional Conduct concerning his:A．research.B．intellectual property.C．prospective client disclosure.【答案】B【解析】CFA Institute Standards2012 IVlodular Level Ⅰ, Vol.1, pp.19-20,38-39,107-108Study Session 1-2-bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.B is correct because the analyst has not violated Standard Ⅰ (A) Knowledge of the Law related to intellectual property because there is no indication the analyst was ignorant of, or has violated, any law related to intellectual property. Taking his personal papers and research notes would not be a violation of strict local laws on intellectual property transference because these documents were created by the analyst prior to his employment at Apac.13．Oliver Opdyke, CFA, works for an independent research organization that does not manage any client money. In the course of his analysis of Red Ribbon Mining he hears rumors the president of Red Ribbon, Richard Leisberg, hasrecently been diagnosed with late stage Alzheimer's disease, a fact not publicly known. The final stage of Alzheimer's is when individuals lose the ability to respond to their environment, the ability to speak, and, ultimately, the ability to control movement. Leisberg is the charismatic founder of Red Ribbon, and under his leadership the company grew to become one of the largest in the industry. According to the (~FA Institute Code of Ethics and Standards of Professional Conduct, the most appropriate action for Opdyke is to:A．immediately publish a sell recommendation for Red Ribbon Mining. B．confirm the president's diagnosis before publishing his research report. C．encourage Red Ribbon IVlining management to disclose the president's medical condition.【答案】C【解析】CFA Institute Standards2012 IVlodular Level Ⅰ, Vol.1, pp.49-52Study Session 1-2-cRecommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.C is correct because members and candidates should make reasonable efforts to achieve public dissemination of information that is material and nonpublic, as required by Standard II (A) IVlaterial Nonpublic Information. This effort usually entails encouraging the issuer company to make the information public. In this case, if the diagnosis is fact and not rumor, then this information is material and should be disclosed.14．Raymond Ortiz, CFA, provides investment advice to high-net-worth investors. Ortiz has just completed an analysis of Continental Wheat, a manufacturer of wheat-based food products. He rated the company a long-term hold for investors seeking growth and income. Ortiz's analysis included a review of the company's management team, financial data, pro forma financial positions, dividends and dividend policy, and a comparison of Continental with its competitors. Althoughhe does not tell anyone, five years ago, Ortiz worked for and managed the commodities derivatives trading unit of Continental. As part of his compensation at Continental, he received stock, which he still owns. Based upon his research, Ortiz recommends Continental to clients who have a moderate risk tolerance. Two weeks later Continental announces its quarterly earnings are 30% less than a year ago. Consequently, shares of Continental drop by 50%. Ortiz most likely violated the CFA Institute Code of Ethics and Standards of Professional Conduct related to his stock:A．research.B．ownership.C．recommendation.【答案】B【解析】CFA Institute Standards2012 Modular Level Ⅰ, Vol.1, pp.107-108,123-126Study Session 1-2-bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.B is correct because there is a violation of Standard Ⅵ (A) Disclosure of Conflicts; the analyst worked for Continental and still has ties to the company in the form of his stock ownership.15．Carolina Ochoa, CFA, is the chief financial officer at Pantagonia Computing. Ochoa is currently the subject of an inquiry by Pantagonia's corporate investigations department. The inquiry is the result of an anonymous complaint accusing Ochoa of falsifying travel expenses for senior management related to a government contract. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, it is most appropriate for Ochoa to disclose the allegations:A．on her Professional Conduct Statement.B．to CFA Institute when the investigation concludes.C．to CFA Institute if the allegations are proven correct.【答案】A【解析】CFA Institute Standards2012 Modular Level Ⅰ, Vol.1, p.8Study Session 1-1-cExplain the ethical responsibilities required by the Code and Standards, including the multiple sub-sections of each standard.A is correct because members and candidates must self-disclose on the annual Professional Conduct Statement all matters that question their professional conduct, such as involvement in civil litigation or criminal investigations or being the subject of a written complaint.16．Belen Zapata, CFA, is the owner of Kawah Investments. Kawah promises investors returns of up to 12% per year and claims to achieve this by investing in non-investment-grade bonds and other fixed income instruments. Over the next 12 months, bond market yields reach unprecedented lows and Zapata finds it impossible to achieve the returns she expected. No investments are ever made by Kawah, and clients are completely paid back all of their original investment. Zapata most likelyviolated the CFA Institute Standards of Professional Conduct because of the:A．return of capital.B．promised returns.C．investment mandate.【答案】B【解析】CFA Institute Standards2012 Modular Level Ⅰ, Vol.1, pp.38-39Study Session 1-2-bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.B is correct because the member has misrepresented the returns she could realistically achieve for her clients, violating Standard Ⅰ (C), which prohibits members and candidates from guaranteeing clients any specific return on volatile investments.17．Jan Loots, CFA, quit his job as a portfolio manager at an investment firm with whom he had a non-solicitation agreement he signed several years ago. Loots received permission to take his investment performance history with him and also took a copy of the firm's software-trading platform. Subsequently, Loots sent out messages on social media sites announcing he was looking for clients for his new investment management firm. Access to Loots' social media sites is restricted to friends, family, and former clients. Loots least likelyviolated the CFA Institute Standards of Professional Conduct concerning his:A．trading software.B．non-solicitation agreement.C．investment performance history.【答案】C【解析】CFA Institute Standards2012 Modular Level Ⅰ, Vol.1, pp.90-93Study Session 1-2-cRecommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.C is correct because the portfolio manager received permission to use his investment performance history from his prior employer. The member violated his non-solicitation agreement by indicating his availability to new clients on several social media sites accessible by clients of his former employer, a violation of Standard Ⅳ(A) Loyalty, because he did not act for the benefit of his former employer. In this case, the member may cause harm to his former employer if his weekend messages result in clients moving to his new business from his former employer. The member also violated this standard by taking his employer's property, trading software.18．Chan Liu, CFA, is the new research manager at the Pacific MicroCap Fund. Liu observed the following activities after she published a research report on a thinly traded microcap stock that included a "buy" recommendation:·Pacific traders purchased the stock for Pacific's proprietary account and then purchased the same stock for all client accounts; and·Pacific marketing department employees disseminated positive, but false, information about this stock in widely read Internet forums.Liu notes the stock's price increased more than 50% within a period of two days and was then sold for Pacific's account. Which of the following steps is most appropriate for Liu to take to avoid violating the CFA Institute Code of Ethics and Standards of Professional Conduct?A．Report the observed activities to her employer.B．Remove her name from the microcap stock research report.C．Publicly refute the false information posted on Internet forums.【答案】A【解析】CFA Institute Standards2012 Modular Level Ⅰ, Vol.1, pp.19-21,59,131Study Session 1-2-cRecommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.A is correct because certain staff at Liu's employer appear to be engaged in front running, a violation of Standard VI (B) Priority of Transactions, and market manipulation, a violation of Standard Ⅱ (B) Market Manipulation. If Liu observes these violations without taking steps to notify her employer, she will be in violation of Standard Ⅰ (A) Knowledge of the Law. Liu should know that the conduct observed is likely a violation of applicable laws, rules, and regulations and is a violation of the CFA Institute Code and Standards. Her first step, therefore, should be to attempt to stop the behavior by bringing it to the attention of the employer through a supervisor or the firm's compliance department. Inaction may be construed as participation or assistance in the illegal or unethical conduct.Questions 19 through 32 relate to Quantitative Methods19．An analyst has established the following prior probabilities regarding a company's next quarter's earnings per share (EPS) exceeding, equaling, or being below the consensus estimate.Several days before releasing its earnings statement, the company announces a cut in its dividend. Given this information, the analyst revises his opinion regarding the likelihood that the company will have EPS below the consensus estimate. He estimates the likelihoods the company will cut the dividend given that EPS exceed/meet/fall below consensus as reported below.Bayes' formula:Updated probability of event given the new information。

2012年金融专业英语证书考试FECT模拟试题-7 (1)

2012年金融专业英语证书考试FECT模拟试题-7(总分：100.00，做题时间：90分钟)一、SECTION ONE (Compulsory)：Answer all ten questions in this section. Each question carries 1 mark. (总题数：10，分数：20.00)1.Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. Which of the following is least likely to be classified as a financial statement element? () （分数：2.00）A.AssetB.RevenueC.Liability income √解析：2. Amy, a CFA candidate, recently joined A&F Asset Management, and reports directly to Tammy. Shortly after joining the firm, Amy learned that A&F Asset Management does not have a copy of the Code and Standards. Which of the following statements best complies with AIMR Standards of Professional Conduct? ()（分数：2.00）A.Amy must deliver a copy of the Code and Standards to Tammy.B.Amy must notify Tammy, in writing, of her obligation to comply with the Code and Standards.C.Statement A and B. √D.None of the above.解析：pared with an otherwise identical amortizing security, a zero-coupon bond will most likely have: ()（分数：2.00）A.Less interest rate risk and more reinvestment risk.B.Less reinvestment risk and more interest rate risk. √C.The same reinvestment risk and less interest rate risk.D.The same interest rate risk and more reinvestment risk.解析：4.A futures trader goes long one futures contract at $450. The settlement price 1 day before expiration is $500. On expiration day, the future is trading at $505. The least likely way the futures trader will lock in her profits on expiration is: ()（分数：2.00）A.Take delivery of the underlying asset and pay $500 to the short.B.Close out the futures position by selling the futures contract at $505.C.Take delivery of the underlying asset and pay the expiration settlement price to the short. √D.Cash settle the futures and receive the difference between $500 and the expiration settlement price.解析：5.Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. Bishop Ltd. received an advanced payment of $10,000 on December 1, for rent on a property for December and January. On receipt they correctly recorded it as cash and unearned revenue. If at December 31, their year-end, they failed to make an adjusting entry related to this payment, ignoring taxes, what would the effect on the financial statements for the year be? ()（分数：2.00）A.Assets are overstated by $5,000 and Liabilities are overstated by $5,000.B.Liabilities are overstated by $5,000 and Net income is overstated by $5,000. √C.Assets are overstated by $5,000 and Owner’s equity is overstated by $5,000.D.Liabilities are overstated by $5,000 and Owners’ equity is understated by $5,000.解析：6.A market participant has a view regarding the potential movement of a stock. He sells a customized over-the-counter put option on the stock when the stock is trading at $38. The put has an exercise price of $36 and the put seller receives $2.25 in premium. The price of the stock is $35 at expiration. The profit or loss for the put seller at expiration is: ()（分数：2.00）A.$1.25.B.$1.00.C.$1.25 √D.$2.25.解析：7.As part of an AIMR investigation into the conduct of Helen, CFA, AIMR requests records from Helen about her investment accounts. Helen writes AIMR a letter stating that under Standard IV (B.5), Preservation of Confidentiality that she is unable to comply with their request. Which of the following statement is TRUE? ()（分数：2.00）A.Is correct in her interpretation of Standard IV (B.5).B.Should not turn over the information because it will violate federal material nonpublic information statutes and AIMR’s Standard V (A) Prohibit against Use of Material Nonpublic information.C.Will no be in violation of Standard IV (B.5) by turning over the requested information because under the Professional Conduct Program, the Disciplinary Review Subcommittee is considered an extension of Helen. √D.All of the above.解析：8.Which of the following is the least accurate statement about the short sale of stocks? () （分数：2.00）A.The short seller must pay any dividends due to the lender of shares.B.A stop buy order would enable a short seller to minimize potential losses.C.Short sales involve time limits for returning the shares borrowed to the lender. √D.A short sale can be made only on an uptick or a zero uptick trade if the previous trade was an uptick trade.解析：9.The appropriate measures of free cash flow and discount rate to use when estimating the total（分数：2.00）A.Answer A.B.Answer B.C.Answer C.D.Answer D. √解析：10. Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. An analyst gathered the following information from a company’s accounting records: Theanalyst’s estimate of net income for 2007 would be closest to: ()（分数：2.00）A.$650,000.B.$850,000.C.$1,050,000. √D.$1,850,000.解析：二、SECTION TWO(Compulsory)：Answer the questions in this section. (总题数：1，分数：10.00)Kammel Capital Management is an institutional money manager that oversees over $12 billion in client assets. Most of its assets under management are invested in the Kammel Funds, a family of 12 mutual funds encompassing 9 growth and value equity funds, and 3 fixed income funds. Linda Karazim is an analyst for the Kammel Strategic Income Fund, a flexible fixed-income fund benchmarked to the Lehman Brothers Aggregate Index. The fund owns a substantial portion of subordinated debentures that were issued by Gernot Incorporated to finance the acquisition of a major competitor in 2002. Karazim has been assigned by the Strategic Income Senior Portfolio Manager, Mark Davidson, to analyze the subordinated debt of Gernot, Inc. Karazim decides that the best way to assess the credit quality of the Gernot’s bonds is to analyze the firm’s financial statements and calculate ratios that will identify trends in the firm’s operations and financing decisions. Karazim searches online and pulls up Gernot’s financial statements for the last threeyears. The statements Karazim uses for her analysis are shown below: As Karazim is working on her project, Jacob Cannon, an analyst for Kammel’s Large Cap Growth F und, stops by Karazim’s office to chat. When Karazim tells him that she is working on a ratio analysis project to assess Gernot Inc.’s subordinated debt, Cannon tells her that Kammel’s growth equity team is potentially looking to purchase Gernot’s stock fo r their fund. Karazim tells Cannon that the return on assets ratio that she has calculated for evaluating Gernot’s debt rating would also be considered one of the most effective ratios for use in valuing Gernot’s stock. Cannon replies that he has been doin g his own ratio analysis to assess Gernot’s systematic risk and one of the most useful ratios for identifying relationships between accounting variables and beta is the current ratio, which would also be useful in forecasting the possibility of Gernot, Inc. going bankrupt. After Karazim completes her analysis, she has a meeting with Davidson to discuss her findings. At the meeting, Karazim tells Davidson that Gernot’s Inc.’s sustainable growth rate based on 2004 data is 9 percent, and that a growing company has a much lower chance of defaulting on its debt. Davidson, always critical of the work of the analysts that work for him, concludes the meeting by telling Karazim that she did good work, but one of the major limitations of the cross-sectional analysis she has performed is that comparisons are made difficult due to different accounting treatments. （分数：10.00）(1).What are Gernot’s total asset turnover for 2004 and the change in the ratio from 2002 to 2004? () 2004 Ratio Change in Ratio （分数：2.00）A.2. 08 decline of 0.18B.1 .52 decline of 0.56 √C.2.08 increase of 0.18D.1.52 increase of 0.56解析：The total asset turnover ratio = sales/assets. In 2002, the ratio was (10,424/5,012) = 2.08. In 2004, the ratio was (11,606/7,636) = 1.52. From 2002 to 2004 the ratio declined by (2.08 –1.52) = 0.56.(2).What is the change in Gernot Inc.’s cash conversion cycle from 2003 to 2004? The cash conversion cycle has: () （分数：2.00）A.Increased by 17 days.B.Increased by 33 days.C.Increased by 25 days. √D.Decreased by 13 days.解析：The cash conversion cycle = (average receivables collection period) + (average inventory processing period) –(payables payment period). For 2003: Receivables turnover = (sales/average receivables) = 11,718/((625+798)/2) = 11,718/712 = 16.46 Average receivables collection period = (365/receivables turnover) = 365/16.46 = 22.17 days Inventory turnover = (COGS/average inventory) = 7183/((1342+937)/2) = 7183/1140 = 6.3 Average inventory processing period = (365/inventory turnover) = 365/6.3 = 57.94 days. Payables turnover = (COGS/average payables) = 7183/((620 + 544)/2) = 7183/582 = 12.34 Payables payment period = (365/12.34) = 29.58 days 2003 cash conversion cycle = 22.17 + 57.94 –29.58 = 50.53 days. For 2004: Receivables turnover = (sales/average receivables) = 11,606/((1294+798)/2) = 11,606/1046 = 11.10 Average receivables collection period =(365/receivables turnover) = 365/11.10 = 32.88 days Inventory turnover = (COGS/average inventory) = 7150/((1342+1552)/2) = 7150/1447 = 4.94 Average inventory processing period = (365/inventory turnover) = 365/4.94 = 73.89 days. Payables turnover = (COGS/average payables) = 7150/((620 + 597)/2) = 7150/609 = 11.74 Payables payment period = (365/11.74) = 31.09 days 2004 cash conversion cycle = 32.88 + 73.89 –31.09 = 75.68 days. From 2003 to 2004, the cash conversion cycle increased by (75.68-50.53) = 25.15 days.(3). Karazim has noted in her analysis that Gernot Inc.’s return on equity has fallen significantly from 2002 to 2004. Using the extended DuPont system, which of the following components had the most impact on Gernot’s ROE decline? () （分数：2.00）A.Financial leverage multiplier.B.Operating profit margin.C.Interest coverage ratio.D.Tax retention rate. √解析：From 2002 to 2004, ROE declined from (328/1575) = 20.8% to (304/2292) = 13.3%. The extended DuPont formula states that ROE = [(operating profit margin)(total asset turnover) – (interest expense rate)](financial leverage multiplier)(tax retention rate) For 2002: Operating profit margin = (EBIT/sales) = (513 + 147)/10,424 = 0.0633 = 6.33%. Total Asset Turnover = (sales/assets) = 10424/5012 = 2.08x Interest Expense rate = (interest expense/assets) = 147/5012 = 2.93% Financial leverage multiplier = (assets/equity) = 5012/1575 = 3.18 Tax retention rate = (1-tax rate) = 1 – (185/513) = 1 – 0.36 = 64%. For 2004: Operating profit margin = (EBIT/sales) = (516 + 340)/11,606 = 0.0738 = 7.38%. Total Asset Turnover = (sales/assets) = 11,606/7,636 = 1.52x Interest Expense rate = (interest expense/assets) = 340/7,636 = 4.45% Financial leverage multiplier = (assets/equity) = 7,636/2,292 = 3.33 Tax retention rate = (1-tax rate) = 1 – (212/516) = 1 – 0.41 = 59%. Since the operating profit margin and the financial leverage multiplier both increased, these did not have an adverse impact on the ROE. The interest coverage ratio is not part of the DuPont formula. The only viable answer is the tax retention rate, which, in fact did decline significantly.(4).Regarding Karazim’s conver sation with Cannon regarding the most useful ratios for various tasks: () （分数：2.00）A.Karazim’s statement is incorrect; Cannon’s statement is incorrect.B.Karazim’s statement is incorrect; Cannon’s statement is correct.√C.Karazim’s statement is correct; Cannon’s statement is correct.D.Karazim’s statement is correct; Cannon’s statement is incorrect.解析：Although return on assets is one of the ratios that bond agencies rely on heavily for deriving their debt ratings, it is not one of the ratios that is deemed most useful for stock valuation, therefore Karazim’s statement is incorrect. Return on equity, (not ROA), is a ratio that is deemedto be very effective for both stock valuation and determining credit ratings. Cannon’s statement is correct – the current ratio is considered to be one of the most effective ratios for both determining systematic risk (beta) based on accounting variables and for forecasting bankruptcy.(5).Karazim decides to enhance her analysis by creating common size statements for Gernot, Inc. Which of the following statements is CORRECT? A common size balance sheet expresses all balance sheet accounts as a percent of: () （分数：2.00）A.Total assets and a common size income statement expressall items as a percentage of net income.B.Sales and a common size income statement expressall items as a percentage of net income.C.Sales and a common size income statement expressall items as a percentage of total assets.D.Total assets and a common size income statement expressall items as a percentage of sales. √解析：Common size statements normalize balance sheet items by expressing each item as a percentage of total assets, and normalize income statements by expressing each item as a percentage of sales. Using common size statements allows the analyst to make easier comparisons of different sized firms. Explanations of terms：(10 points) 1. Legal tender：The status of legal tender simply means that coins and paper currency cannot lawfully be refused in payment for goods and services and in discharge of debts. 2. Double-entry bookkeeping：Bookkeeper debits the transaction to one account and credits it to another bill of exchange: A non-interest-bearing written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date. 3. Arbitrage pricing theory：An equilibrium model of asset pricing that states that the expected return on a security is a linear function of the security’s sensit ivity to various common factors. 4. Soft law：Quasi-legal instruments which do not have any legally binding force, or whose binding force is somewhat "weaker" than the binding force of traditional law, often contrasted to soft law by being referred to as "hard law". 5. Gold markets：According to its nature and the influence on the entire world gold transaction, gold market may be divided into leading market and regional market. According to the difference of transaction type and the transaction way, gold market may be divided into spot transaction and future transaction. Following international experiences, gold market participants include; gold enterprises, banks, hedge funds, organizations and personal investors, broker companies and the exchanges. Factors that Affect Gold Market are the quantity change of structure of supply and demand, economic factors and political situation and unexpected significant events. There are many different ways to invest in gold, such as gold futures, gold exploration companies, blue-chip gold mining stocks, gold mutual funds, gold bars, gold bullion and gold coins.三、Explanations of terms：(总题数：5，分数：30.00)11.Legal tender（分数：6.00）__________________________________________________________________________________________正确答案：()解析：12.Double-entry bookkeeping（分数：6.00）__________________________________________________________________________________________正确答案：()解析：13.Arbitrage pricing theory（分数：6.00）__________________________________________________________________________________________正确答案：()解析：14.Soft law（分数：6.00）__________________________________________________________________________________________ 正确答案：()解析：15.Gold markets（分数：6.00）__________________________________________________________________________________________ 正确答案：()解析：四、Question and Answer(总题数：4，分数：40.00)16. What is the Theory of Money Supply by the Monetarist School?（分数：10.00）__________________________________________________________________________________________ 正确答案：(Friedman held that money demand is relatively stable and money supply must be guaranteed stable, too, if there should be equilibrium between money demand and money supply. So Friedman opposed the management of the aggregate demand raised by Keynes and focused on the importance of money supply. According to the Monetarist School, the core of economic policies is placed on monetary policy, which should be the only important wander-working among all economic policies. Without monetary policy, other eco nomic policies can’t achieve their anticipated effect. Friedman assumed that the best choice in controlling money supply was the "single rule" of monetary policy, i. e. , making it known to the public to adapt a fixed increasing rate of money supply, excluded other factors, such as interest rates, credit flow, excess reserves on a voluntary basis, and so on. So monetary policy should just take a certain money stock as the only decisive factor. In order to carry out the "single rule”, three problems should be solved; the first is how to define the scope of the aggregate money supply; the second is how to decide the increasing rate of money supply and the third is whether or not fluctuation of the increasing rate of money supply is allowed during a certain period, a year or a season. The solution to the above problems is as follows; firstly, M2 should be the scope of the aggregate money supply; secondly, the increasing rate of money supply should be suited to economic growth rate and thirdly, it couldn’t be c hanged at will when the increasing rate of money supply had been decided. If there is need for change of the increasing rate of money supply, it should be announced and the band of fluctuation should be as small as possible. )解析：17.Explain the Open Market Operations.（分数：10.00）__________________________________________________________________________________________ 正确答案：(The most widely used instrument of monetary policy is open market operations. Open market operations involve the purchase of securities by a central bank to put additional reserves at the disposal of the banking system or the sale of securities to reduce reserves so that money supply can be altered. Open market operations are the bread-and-butter instrument of Federal Reserve policy in U. S. Because the central bank earns interest income from its securities portfolio, the total revenues earned by the central bank vary in direct proportion to the magnitude of its portfolio. However, this consideration plays no role in the central bank’s decision to acquire or sell securities. Indeed, if it did, the central bank could not perform the chief function of a central bank—conducting monetary policy in a way that contributes to the stability of aggregate expenditures and economic activity. Suppose the U. S. economy is encountering excessive aggregate demand and escalating inflation. The central bank is therefore intent on implementing a policy of monetary restraint. In that event, the central bank would sell securities on the openmarket. Assume that the central bank sells $225 million in U. S. Treasury bills to a government securities dealer, receiving payment via a check written against the dealer’s bank checking account. When the central bank receives the check, it "collects" by debiting the reserve account of (making a bookkeeping entry against) the dealer’s commercial bank and returns the check to that bank. Upon receipt of the check, the commercial bank debits the dealer’s demand deposit account. The relevant balance sheets exhibit the following changes. )解析：18.(1) State the difference between a documentary credit and a documentary collection. (2) Why is a documentary credit arrangement important to an exporter? (3) What is the difference between a revocable credit and an irrevocable credit?（分数：10.00）__________________________________________________________________________________________正确答案：((1) A documentary credit is a written undertaking by a banker who is the agent fro the importer or the buyer. The function of a documentary collection is to provide both importer (buyer) and exporter (seller) with a compromise to settle their trade transactions between payment in advance and on open account terms. The parties involved in a documentary credit arrangement include issuing banker, advising banker, the applicant and the beneficiary. Parties involved in a documentary collection include the drawer (exporter or seller), the remitting bank, the collecting bank and the drawee (importer or buyer). . Their processes are different. (2) In accordance with the instructions of the importer, the bank undertakes to pay the exporter, up to a limit, within a designated time period and against any stipulated terms and documents. The credit created for international settlement among banks not only provides a sense of security for the traders involved , but also a reliable source of finance for foreign trade where required .(3) A "revocable credit" may be cancelled at any time up to the moment the advising bank pays. This type of credit is the least favorable to the exporter. An irrevocable credit may not be amended or even cancelled without the consent of all the parties involved. This type of credit guarantees payment to the beneficiary, provided that the credit terms and conditions are met. ) 解析：19.What are the Countering Financial Abuse and Crime? What Others Are Doing?（分数：10.00）__________________________________________________________________________________________正确答案：((1) Since the late 1980s, the growing concerns about drug trafficking and the uses made of globalization facilitated by the advancements in communication technology have led to direct and indirect approaches by different international institutions and the international community to combat financial crime and money laundering. (2) The FATF and affiliated regional organizations lead the international efforts in directly combating money laundering. Members of the FATF engage in annual self-assessments and in periodic mutual evaluations of members’ anti-money laundering efforts. In June 2000, the FATF identified 15 non-member jurisdictions that it considers as "non-cooperative with international efforts against money laundering". Since the FATF is a voluntary task force and not a treaty organization, its recommendations do not constitute a binding international convention. Fund staff has participated, as observers, in most FATF plenaries since 1980. At the request of the FATF, Fund staff made a statement at the Junel996 FATF Plenary on the macroeconomic impact of money laundering, and the Managing Director made a statement at the February 1998 FATF plenary. The FATF has recently agreed to share results from their exercises with Fund staff conducting financial assessments, in the context of FSAP and OFC assessments. At a recent IMF Executive Board meeting, the possibility was raised that the FATF could be invited to prepare ROSC modules on Fund members’ observance of the FATFs Forty Recommendations. Some members of the FATF have asked that the Fund’s Article IV"? Surveill ance and program conditionally include anti-money laundering considerations. The FATF President, ina letter to Fund management, suggested that the FATF Forty Recommendations be adopted as the anti-money laundering standard. (3) Other direct efforts to counter financial crime are undertaken mainly by the International Criminal Police Organization (Interpol) and national financial intelligence units (FIUs). The United Nations takes part in the direct efforts through the United Nation’s Office for Drug Cont rol and Crime Prevention Global Program against Money Laundering (UNDCCP), which monitors weaknesses in global financial systems and assists countries in criminal investigations. Recently, the international community’s awareness of financial system abuse has been heightened by the work of the FSF. In May 2000, the FSF classified 42 OFCs into three groupings, and called on the Fund to take the lead in assessing OFCs adherence to internationally accepted standards and codes. (4) Indirect efforts to counter financial system abuse focus on the preconditions for the proper functioning of financial systems and the formulation and enforcement of relevant laws. These efforts encompass general standards for the supervision and regulation of banks, securities markets, and insurance, as incorporated in the standards developed by the Basel Committee, the IOSCO, and the IAIS. The substance of relevant FATF recommendations is incorporated in the principles of supervision of the Basel Committee and other international supervisory standard-setters. (5) Banking, insurance, and securities markets supervisors are involved in both indirect and direct efforts to combat financial system abuse. Supervisors in different countries exchange information (often based on a network of memoranda of understandings) about individual banks, insurance companies, or agents in the securities markets, with a view to uncover unsound and illegal activities such as securities fraud, insider trading, or misreporting. Supervision is also exercised over the internal mechanisms to control risks, particularly operational risks, which also contributes to countering fraud and other forms of financial crime. (6) Out of concern over the potential impact of tax-induced distortions in capital and financial flows on welfare and on individual countries tax bases, the OECD initiated coordinated action for the elimination of harmful tax practices. In May 1998, the OECD issued a report on Harmful Tax Competition including a series of 19 recommendations for combating harmful tax practices, established a Forum on Harmful Tax Practices, and proposed Guidelines for Dealing with Harmful Preferential Regimes in Member Countries (Annex II). In June 2000, OECD issued a list of countries it considers as engaged in harmful tax practices. )解析：。

2012年金融英语证书考试FECT模拟试题-2_真题-无答案

2012年金融英语证书考试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.2. 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.3. 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 level4. What unemployment is formed because of the economic recession? ()A. friction unemploymentB. structural unemploymentC. cyclical unemploymentD. natural unemployment5. 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.6. 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.7. When a country’s currency appreciates, the country’s goods abroad become ______ and forei gn goods in that country become ______.A. cheaper... more expensiveB. more expensive... cheaperC. cheaper...cheaperD. more expensive... more expensive8. 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 bond9. 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.10. 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.SECTION 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 **panies 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 scenario analysis to adjust cash flows. Sigmund asks him, “Why didn’t you simply 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 toexhibit 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 **panies will tend to respond differently to country risks. This makes it virtually impossible to adjust the discount rate for country specific risk **e 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%.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 **pany has an inflation flow-through rate of 65 percent? ()A. 13.75.B. 5.33.C. 3.00.D. 21.2513. 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 reason 2 does not.B. All three of the reasons given support Testorf’s cash flow adjustment.C. Reasons 2 and 3 suppo rt Testorf’s cash flow adjustment, but reason 1 does not.D. Reason 1 supports Testorf’s cash flow adjustment, but reasons 2 and 3 do not.14. Due to the high inflation rate of the local country, Testorf calculates the return on invested capital (ROIC) f or Kiani by revaluing **pany’s fixed assets. In comparing the performance of Zuflak to other **panies, the ROIC calculation should: ()A. Exclude goodwill.B. Exclude depreciation.C. Not revalue fixed assets.D. Exclude net operating profit adjusted for taxes.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.Explanations of terms16. Real interest rate17. Window instruction18. Special drawing rights19. Money market mutual funds20. Putable bonds21. Please list some Capital Market Instruments.22. What kind of Economic Policy in an Open Economy23. What is the Modern Quantity Theory of Money Demand?24. If you are a policy maker, what are your Ultimate Targets of Monetary Policy?。

2012年金融专业英语证书考试FECT模拟试题及答案(1)

2012年金融专业英语证书考试FECT模拟试题及答案-8SECTION ONE (Compulsory)：Single-choice questionsMultiple-choice questions: from the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points)1. Tom cannot tell the difference between Coke and Pepsi. For Tom, these goods are: ()A. Perfect substitutes.B. Perfect complements.C. Necessities.D. None of the above.2. Suppose the economy is running at the level of potential GDP, an increase in government spending in the long run will ___ the price level and ___ the output level,A. Increase, not changeB. Increase, increaseC. Increase, decreaseD. Decrease, increase3. For a natural monopoly, the optimal policy for a regulator to set is a price such that: ()A. The price level equals marginal cost.B. The price level equals average variable cost.C. The price level equals average total cost but higher than marginal cost.D. The price level is lower than marginal cost but higher than average total cost.4. If AD shifts to the right to adapt to oil shocks from OPEC, then: ()A. P and GDP will remain normal automatically.B. GDP may be unchanged although P will rise.C. GDP will rise and P will drop.D. The domestic P of oil will drop.5. School students paying a lower fare than adults on the MTR trains, or cheaper tickets to the theatre, is an example of: ()A. The suppliers making less profit because some customers pay a lower price.B. Consumers obtaining more consumer surplus.C. Price discrimination allowing the suppliers to make more profit from charging a higher price to customers whose demand is more elastic.D. Price discrimination allowing the suppliers to make more profit from charging a lower price to customers whose demand is more elastic.6. When the nominal interest rate rises, ()A. Economic activity is encouraged.B. The real interest rate rises and the price of bonds rises.C. Inflation rises and the real interest rate falls.D. The real interest rate rises and the price of bonds falls.7. A firm has fixed costs of £100,000 per month and variable costs of £25 for item. It proposes to sell these items for £50 each. What is the break-even output for this firm? ()A. 4,000 unitsB. 4,000 units in a month.C. Cannot be worked out from the information.D. 2,000 units per month.8. For an A- rated corporate bond that has deteriorating fundamentals, but is expected to remain investment grade, the greatest risk is most likely: ()A. Event risk.B. Default risk.C. Liquidity risk.D. Credit spread risk.9. An investor currently has a portfolio valued at $700,000. The investor’s objective is long-term growth, but the investor will need $30,000 by the end of the yea r to pay her son’s college tuition and another $10,000 by year-end for her annual vacation. The investor is considering four alternative portfolios:Portfolio Expected Return Standard Deviation of Returns1．8% 10%2．10% 13%3．14% 22%4．18% 35%Using Roy’s safety-first criterion, which of the alternative portfolios minimizes the probability that the investor’s portfolio will have a value lower than $700,000 at year-end? ()A. Portfolio 1.B. Portfolio 2.C. Portfolio 3.D. Portfolio 4.10. A futures trader must deposit an additional amount of money into a margin account at the clearinghouse if the margin account ending balance is below the: ()A. Initial margin requirement.B. Variation margin requirement.C. Maintenance margin requirement.D. Amount of the loan borrowed from the clearinghouse.SECTION TWO(Compulsory)：Reading Comprehension(10 points)Jason Johnson, CFA, is a principal of a large private equity firm in New York. One of the associates in his firm has identified a potential investment opportunity for the firm. Gasline, Inc. is a major producer of pipeline used in the production of natural gas in the Southwest United States. Last year, Gasline had approximately $150 million in sales, and sales are expected to increase as a result of increasing demand for their product. The company was founded over twenty-five years ago, and has been publically traded for the last ten years. The founder of the company, along with other members of the family, holds the majority of the common stock, and the group is amenable to liquidating their collective position at this time.Johnson’s associate believes there is significant opportunity in the industry, based upon new technology that allows for the extraction of natural gas from locations and depths that previously were too cost-prohibitive. This new technology should translate into increased demand for the industry, both domestically and abroad. Johnson concurs with this forecast for the industry, but believes further in-depth analysis must be performed before any investment decision can be made.Of particular concern to Johnson is Gasline’s numerous, complicated transactions related to the company’s various stock-based compensation plans. Over the past decade, the company has participated in varying degrees in programs involving stock option grants, an employee stock purchase plan, and performance-based awards. Johnson believes that thorough analysis of each program will determine whether or not the programs were properly accounted for in Gasline’s financial statements.The CEO of Gasline was awarded a stock option package at the beginning of 2006, which could ultimately have a significant impact on the company’s future earnings. Details of the CEO’s stock opti on grant are outlined below.The company established an employee stock purchase plan in 2004. Under the existing plan guidelines, full-time employees of Gasline that have completed 3 years of service are eligible to purchase up to 1,000 Gasline shares per year at a 15% discount. Since inception of the program, employees of the company have purchased approximately 75,000 shares. In the footnotes to the company’s financial statements, it states that Gasline’s management has determined that the plan is noncompensatory and therefore no compensation expense has been recognized in association with the plan.Part of the total compensation package for Gasline employees comes through participation in a service-based stock awards grant program. Under this program, all full-time employees are awarded 100 shares of Gasline common stock on July 1st of each year. Employees vest at the rate of 20% each year, and are fully vested after the completion of five years of service. Employees that leave the company or retire prior to being fully vested forfeit all interest in the stock. Johnson questions whether or not Gasline’s accounting treatment of this program is fullyin accordance with FASB standards.CEO Options (grant date January 1, 2006)Part 1)For the valu ation of the CEO’s stock options granted on January 1, 2006, Gasline estimated a fair value of $100,000 by using Monte Carlo simulation. In accordance with SFAS No. 123(R), which of the following statements is most accurate? Gasline’s accounting treatment of the options is: ()A. In compliance because a Monte Carlo simulation is an acceptable method of valuing options in the absence of a market-based instrument.B. Not in compliance because the fair value must be established by using the Black-Scholes option pricing model.C. Not in compliance because the options had no intrinsic value as of the grant date.D. In compliance because the firm can elect to use either the intrinsic value model or the fair value model in the valuation of stock option plans.Part 2)Assume that the CEO of Gasline exercises 25,000 of his options on December 31, 2006, and the market price of the stock on that date is $39.50. Calculate the total compensation expense for the year ending 2006 that Gasline should recognize in association with the CEO option grant. ()A. $62,500.B. $25,000.C. $100,000.D. $0.Part 3)In accordance with SFAS No. 123(R), which of the following statements regarding Gasline’s employee stock purchase plan is most accurate? ()A. The plan cannot be considered noncompensatory because the discount exceeds the per share transaction cost of a public offering.B. The plan can be considered noncompensatory because it is offered equally to all full-time employees, not just upper management.C. The plan cannot be considered noncompensatory because participation is voluntary on the part of the employees.D. The plan can be considered noncompensatory because of the existence of the service-based stock awards grant program.Part 4)If an employee stock purchase plan is considered noncompensatory in accordance with SFAS No. 123(R): ()A. Compensation expense is recognized over the projected remaining service life of each employee.B. Compensation expense is deferred until the shares are sold.C. No compensation expense is recognized.D. Compensation expense is limited to the amount of the discount.Part 5)SFAS No. 123(R) gives specific guidelines as to what date is to be used to establish the fair value of the stock awarded through a service-based award program, and whether or not any adjustment for awards that did not vest must be made to compensation expense at the end of the vesting period. Which of the following guidelines is most applicable to Gaslin e’s program? () Date that fair value is established "True-up" adjustment necessary?A) Grant date NoB) Last day of grant year YesC) Grant date YesD) Last day of grant year NoSECTION THREE(Compulsory)：Explanations of terms(25 points)1. Speculative demand for money2. Time lag3. Floating exchange rate4. Present value5. The OTC MarketSECTION FOUR(Compulsory)：Answer questions(32 points)Question1: What is Common Stock？Question2: What is the Controllability?Question3: What is the monetary base?Question4: List the Counter-measures of Inflation as more as possible.参考答案SECTION ONE:A A CB D ，B B DC CSECTION TWO ：Part 1)A was correct!Under SFAS No. 123(R), firms are required to use the fair value method of valuing stock option plans. In the absence of a market-based instrument, firms may select and use an option-pricing model such as the Black-Scholes, the binomial model or Monte Carlo.Part 2)B was correct!Under the fair value method, as required by SFAS No. 123(R), Gasline will recognize compensation expense over the 4 year vesting period. For the year ending 2006, Gasline will recognize $25,000 (= $100,000 / 4 years) in compensation expense. Compensation expense is not affected when options are exercisedPart 3)A was correct!If an employee stock purchase plan is considered noncompensatory under the guidelines of SFAS No. 123(R), then the company is not required to recognize any compensation expense associated with the program. One of the several criteria that must be met in order to be considered noncompensatory is that the discount cannot exceed the per share transaction cost of a public offering, typically 5% or less. The 15% discount offered by the Gasline plan is clearly in excess of the safe harbor amount, and therefore the plan cannot be considered noncompensatory.Part 4)B was incorrect. The correct answer was C!If an employee stock purchase plan is considered noncompensatory under the guidelines of SFAS No. 123(R), then the company is not required to recognize any compensation expense associated with the programPart 5)B was incorrect. The correct answer was C!Grant date YesThe fair value is measured on the grant date of the award, which is the date the award is approved by the board of directors or compensation committee. There is an adjustment, referred to as a “true-up”, to compensation expense at the end of the vesting period for awards that did not vest. Compensation expense is adjusted downward for those awards that did not vest. SECTION THREE：Explanations of terms：(10 points)1. Speculative demand for money：The money held with the intention of securing profit from speculating activities is called the speculative demand for money, but it is difficult to foresee because it all depends on people’s expectation of the market.2. Time lag：The time lag of monetary policy is the delay between the time at which policy actions are taken and the time at which the expected results of monetary policy are achieved.3. Floating exchange rate：A rate of exchange between one currency and others is permitted to float according to market forces. Most major currencies and countries now have floatingexchange rates but governments and central banks intervene, buying or selling currencies when rates become too high or low.4. Present value：A concept that is used to evaluate credit market instruments by placing all payments in terms of today’s dollars so that they can be added together.5. The OTC Market：The OTC market is called the market for unlisted stocks. As explained previously, technically while there are listing requirements for exchanges, there are also listing requirements for the NASDAQ National and Small Capitalization OTC markets. Nevertheless, exchange traded stocks are called listed, and stocks traded on the OTC markets are called unlisted.SECTION FOUR：Question1：Answer:A share of common stock in a firm represents an ownership interest in that firm. Common stockholders vote, receive dividends, and hope that the price of their stock will rise. There are various classes of common stock, usually denoted as type A, type B, and so on. Unfortunately, the type does not have any meaning that is standard across all companies. The differences among the types usually involve either the distribution of dividends or voting rights. It is important for an investor in stocks to know exactly what rights go along with the shares of stock being contemplated.In the event of liquidation, com mon stockholders have rights to a company’s assets only after bondholders, other debt holders, and preferred stockholders have been satisfied. Typically, common stockholders receive one vote per share to elect the company’s board of directors (although the number of votes is not always directly proportional to the number of shares owned). The board of directors is the group of individuals that represents the owners of the corporation and oversees major decisions for the company. Common shareholders also receive voting rights regarding other company matters such as stock splits and company objectives. In addition to voting rights, common shareholders sometimes enjoy what are called “preemptive rights". Preemptive rights allow common shareholders to maintain their proportional ownership in the company in the event that the company issues another offering of stock. This means that common shareholders with preemptive rights have the right but not the obligation to purchase as many new shares of the stock as it would take to maintain their proportional ownership in the company, also called junior equity.Question2：Answer:It refers to the fact that a central bank is able to effectively control and regulate the financial variables to be chosen as targets through the use of various monetary policy instruments. If a particular variable is to be a useful intermediate target, the central bank must be capable of exerting predominant influence over it in the short run. In the parlance of economists, an intermediate target variable should not be endogenous, or strongly influenced by such forces as the business cycle and inflation expectations. Interest rates are said to be endogenous because they are heavily influenced by business cycle forces and the outlook for inflation. Because the central bank exerts only marginal influence over long-term interest rates, they are not a satisfactory intermediate target of monetary policy.A variable that is not significantly influenced by the business cycle and other economicforces, called an exogenous variable, is a more appropriate intermediate target. The central bank may face little difficulty in dictating the magnitude of such variables, which are "sitting ducks" rather than moving targets. Ideally, an intermediate target variable would be entirely exogenous and controllable. In the real world, however, the variables proposed as intermediate targets are neither totally exogenous nor totally endogenous. Part of the disagreement among economists over the appropriate variable to be chosen as an intermediate target，stems from disagreements concerning the central bank’s ability to exert short-run control over various variables.Question3：Answer:The monetary base, or high-powered money, is defined as banking system reserves plus currency held by the public. More specifically, the monetary base consists of reserve deposits held in the central bank, vault cash or currency held by commercial banks, and currency held by the public. Thus the monetary base can be used either as cash holdings for the public or as reserves to support bank deposits. The monetary base is often expressed in formula as:B =C + RB stands for monetary base, R for banking system reserves, andC for currency held by the public. The monetary b ase is the central bank’s liabilities. In Western countries, the monetary base accounts for an absolutely large percentage in the central bank’s liabilities.And, because R = Fb + CbB = Fb+Cb+CThe monetary base consists of the net monetary liabilities of a consolidated balance sheet of the monetary authorities—taking U. S. for instance. The Treasury’s net monetary liabilities are the outstanding currency and coin it has issued, exclusive of that held in the Treasury and the Fed. Today, this cons ists chiefly of coins. The Federal Reserve’s net monetary liabilities consist of all Federal Reserve notes outstanding (paper money) that are not held in the Fed or Treasury, plus the reserve deposits of banks at the Federal Reserve. As we have indicated and will explain shortly, the Federal Reserve can accurately control the magnitude of these net monetary liabilities by controlling its own balance sheet.Question4：Answer:As there are different causes of inflation, the counter-measures of controlling inflation are varied. These counter-measures focus mainly on such aspects as demand, supply, and structure and so on.1. Policies Concerning Demand ControllingPolicies in this regard refer to that a national government changes the general expenditures by using fiscal and monetary policies in order to control inflation. The policies in this aspect are applied to deal with non-expected and demand-pull inflation. As demand-pull inflation is caused by money supply over money demand, policies concerned demand controlling are aimed at regulating the general money supply of the whole society.(1) Tight monetary policyTight monetary policy means that a central bank carries out the policy of squeezing money, i.e., to raise purchasing power of money by reducing the quantity of money in circulation. The concrete measures are as follows;A. Raising the discount rate and lending rate for the purpose of increasing market interestrates. When a central bank raises the discount rate and lending rate, the discount rate and lending rate of commercial banks will first be affected, then other interest rates in financial markets, which make people save more money, and cut down their consumption demand, push up investment cost and curtail investment demand. In some countries where there is a interest rate control, the central bank can directly raise deposit and lending rates to squeeze credit (reduction of business investment) and absorb savings (reduction of household consumption).B. Selling government securities in the open market to push up interest rates indirectly. Through the central bank’s open market operations, a central bank can decrease the quantity of money in circulation by selling government securities so that the prices of government securities will fall and market interest rates will rise which will curtail investment and consumption. This method is widely used in western countries.C. Raising the required reserve ratio. Raising the required reserve ratio reduces funds commercial banks can loan and weakens commercial banks’ money creation ability so that money supply can decrease.(2) Tight fiscal policyTight fiscal policy includes the increase of tax and reduction of government spending. On one hand, the source of funds used by businesses and households on investment and consumption can be reduced through increasing tax and cutting down transfer payment; on the other hand, government expenditures can be reduced by decreasing fiscal deficits and government procurement. Consumption, investment and government spending are the main parts of the aggregate demand.As there is a lack or a time lag of people’s anticipation of decreasing aggregate demand and the aggregate supply curve won’t move down immediately with the aggregate demand curve or the aggregate supply won’t decrease right away, tight fiscal policy will result in the increase of unemployment and the fall of output, further economic depression in the short run.2. Income PolicyBased on the cost-push inflation, economists have created the theory of income policy which refers to that governments restrict wage hikes in order to control price increase. As wage increase will push up cost and further inflation rate, compulsory and non-compulsory means are adopted to restrict wage hikes. Income policy includes the following aspects:(1) Wage-price controlIt means that a national government forces to fix the range of wage and price increase and even imposes wage and price freezes. These measures affect an economy greatly, but they are seldom used unless there is hyperinflation being caused by war.(2) Wage-price guidelineThis means that a national government determines the standard of wage and price rise according to the average growth rate of productivity and requires that each sector of the national economy keep the wage and price rise within the standard. But this policy is applied voluntarily, not by force or by law, because the effect of it is not so obvious.(3) The tax-based income policyThis is a policy used as penalty for those businesses whose rate of wage rise exceeds the limit of wage rise set by the government. The government penalizes such businesses by imposing higher taxes on them in order to restrict wage rise.3. Income-Indexation PolicyIncome-indexation refers to that wage, interest, earning of bonds and other income are linked with price index so that they can be adjusted with changes of price level. Not only wage, but also social security payment, interest rate and tax rate can be indexed so that the harm done by inflation in an economy can be reduced. This policy is aimed at protecting the interest of different interest groups and overcoming the unfairness of distribution caused by inflation without lowering households’ real living s tandards.Income-indexation, especially, wage-indexation is popular in the developed countries. Some economists hold that income-indexation policy will weaken governments’ intention of applying inflationary policy. Under the condition of income-indexation, the burden of the national government as net debtor will become heavier; the government can benefit less from inflation. But income-indexation can mitigate the unfair redistribution of income caused by inflation and eliminate distortion of distribution of income.4. Supply PolicyTo develop economy and increase effective supply of goods and services is the fundamental measure to curb inflation. The effective supply can be increased through the following channels;(1) To adjust industrial structure and perfect a variety of consumption goodsA national government should give priority to certain industries, support the development of such industries as communication, environment protection, education and tourism and so on, so that limited financial resources and materials can be put into important industries and key products in order to increase social and economic efficiency. Through industrial adjustment the variety of consumption goods can be improved so that supply and demand can be met.(2) Expand range of supply and take in money in the marketIt should be pointed out that people can be over anxious for quick results of harnessing inflation with non-discretionary implementation. The key is that the degree to which tight monetary and fiscal policies are carried out should be controlled properly. Otherwise, things will turn out conversely, deflation will occur.温馨提示-专业文档供参考，请仔细阅读后下载，最好找专业人士审核后使用！。

金融英语模拟题一至五答案

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TEST 5: B , A , A , D , A , C , B , C , C , A ,
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B , A , A , C , A , B , C , C , A , C ,
Section Three
May 17, 2002
ABC Bank
Dear sirs,
Re: the new interest rate
We are pleased to notify you that effective Aug. 1,2002 until further notice interest is to be calculated on the credit balance at 5.5% and charge at 6% p.a. on overdrafts in your Renminbi account with us. We would add that generally your account is not allowed to be overdrawn and it is hoped that you will see to it that your account always keeps a credit balance and is replenished in time when overdrawn.

金融英语证书考试FECT模拟试题及答案-5

2012年金融英语证书考试FECT模拟试题及答案-5SECTION ONE (Compulsory) ：Single-choice questionsfrom the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points)1. Which belongs to the Tightening of fiscal policy tools? ( )A. Reduce government spending and increase tax revenueB. Reduce government spending and reduce taxesC. Increasing government spending and reducing taxesD. Increase in government expenditure and increase tax revenue2. What market is the Most in need of the advertising? ( )A. Fully competitive marketB. Monopolize marketC. Competitive monopoly marketD. Oligopoly market3. The value of national output: ( )A. Is the same of the output of all businesses.B. Is the aggregate of output of employed persons.C. Is synonymous with aggregate manufacturing output.D. Utilizes the "added value" concept.4. With C = 10 + 0.7Y and the level of income changing from $70 billion to $80 billion, the increase in consumption and the revised average propensity to consume (ape) respectively would be: ( )A. $9 billion and 0.78.B. $6 billion and 0.8.C. $7 billion and 0.79.D. $7 billion and 0.825.5. Which of the following goods is likely to have the most elastic demand? ( )A. A particular brand of breakfast cereal.B. Breakfast cereals in general.C. A very cheap good on which not much is spent (e.g. matches newspaper) .D. An essential good.6. School students paying a lower fare than adults on the MTR trains, or cheaper tickets to the theatre, is an example of: ()A. The suppliers making less profit because some customers pay a lower price.B. Consumers obtaining more consumer surplus.C. Price discrimination allowing the suppliers to make more profit from charging a higher price tocustomers whose demand is more elastic.D. Price discrimination allowing the suppliers to make more profit from charging a lower price to customers whose demand is more elastic.7. A futures trader goes long one futures contract at $450. The settlement price 1 day before expiration is $500. On expiration day, the future is trading at $505. The least likely way the futures trader will lock in herprofits on expiration is: ( )A. Take delivery of the underlying asset and pay $500 to the short.B. Close out the futures position by selling the futures contract at $505.C. Take delivery of the underlying asset and pay the expiration settlement price to the short.D. Cash settle the futures and receive the difference between $500 and the expiration settlement price.8. In the context of break-even analysis, the Margin of Safety for a firm is: ( )A. The difference between the sales revenue achieved and the break-even revenue.B. The difference between planned (or actual) output and the break-even quantity in a particular time period.C. The percentage difference between planned (or actual) output and the break-even quantity.D. The difference between planned (or actual) output and the break-even quantity.9. There is 5-year annuity of $3,000 per year. However, the first payment will not pay until year 3. Assuming the interest rate is 10%, calculate the present value of this annuity. ( )A. $8397.B. $9,399.C. $10,258.D. None of the above.10. Hub Global, Inc. has issued two classes of debt securities to finance its operations, a first mortgage bond and debenture bonds. All else equal, will the default and recovery rates of the debenture likely be higher than the first mortgage bond? ( )A. Answer A.B. Answer B.C. Answer C.D. Answer D.SECTION TWO(Compulsory)：Reading Comprehension (10 points)Gary Zeller, an independent portfolio manager who manages money for high-net-worth individuals, is a proponent of the efficient market hypothesis. He uses the Treynor-Black model to determine asset allocations for his portfolios. At the moment, he is considering several investments for new portfolios. Here are their characteristics.The risk-free rate is 5.7%. The expected return of the S&P 500 Index is 10%, and the index's standard deviation is 14%.Zeller plans to create a portfolio using a mix of the S&P 500 Index, the risk-free asset, and the four stocks discussed above. He uses the data above to select the appropriate asset allocations to maximize returns.Recent market activity has Zeller concerned. For several weeks he has seen stocks with weak fundamentals stage a strong rally, while solid, steady-growth stocks have lagged. After extensive research into technical trends and an analysis of the market's fundamentals, Zeller has come to believe the recent trend in the market is likely to continue, with speculative stocks continuing to rally.Despite the gains in speculative stocks, Zeller sees continued weakness in larger, solid stocks causing a decline in the S&P 500 Index. To compensate for this risk, he purchases put options on the 50 largest stocks in the capitalization-weighted index instead of buying the index itself for the new portfolios.Later that day, Zeller receives an e-mail from Florence Whitaker, a client whose portfolio has performed poorly in recent months. She is not happy with the results and questions Zeller's allocation strategy.In a response e-mail, Zeller defends the Treynor-Black model and makes the following points:The strategy is designed to beat the market, but not necessarily to generate gains when the market is down.In your portfolio, I overweight the stocks with the highest potential return to boost performance.A mix of individual stocks and index funds gives the portfolio better potential returns than the index, while offering less risk than the individual stocks.All of the stocks in your portfolio have betas below 1.After sending the e-mail, Zeller opens up a spreadsheet to crunch some numbers. Several of his portfolios have underperformed over the last year, and he resolves to consider whether he should relax his assumptions about the accuracy of forecasts.1) From highest allocation to lowest, how should Zeller allocate the four stocks in his portfolio? ()A. Hearthstone, Minster Mask and Costume, Kustom Auto, Imperial Shipyards.B. Minster Mask and Costume, Kustom Auto, Imperial Shipyards, Hearthstone.C. Kustom Auto, Imperial Shipyards, Minster Mask and Costume, Hearthstone.D. Minster Mask and Costume, Hearthstone, Kustom Auto, Imperial Shipyards.2) Which of Zeller's actions is least compatible with the use of the Treynor-Black model? His: ()A. Purchase of put options.B. Use of index funds.C. Willingness to actively manage portfolios.D. Support of the efficient market hypothesis.3) In light of his observations about market movements, Zeller should: ()A. Increase his cash allocation.B. Increase his index-fund allocation.C. Take no action, the model will account for any changes.D. Increase his allocation of actively managed stocks.4) If Zeller stops assuming forecasts are accurate, he will most likely: ()A. Increase the number of stocks in the portfolio.B. Shift subtly toward CAPM.C. Reduce both risk and potential return of the portfolio.D. Need to rebalance the portfolio more often.5) Assuming Zeller intends to take positions in all four of the stocks discussed above, how many should he sell short? ()A. 1.B. 0.C. 2.D. 3.SECTION THREE(Compulsory)：Explanations of terms(25 points)1. Margin requirement2. Interest ceiling3. Bank for International Settlements (BIS)4. Bancassurance5. Secondary marketSECTION FOUR(Compulsory)：Answer Questiones (32 points)1: Explain the Mechanism of Money Supply.2: What is the Function of stock exchanges?3: List the Counter-measures of Deflation as more as possible.4: What is Financial Liberalization? And what is The Nature of Financial Liberalization?SECTION FIVE(Compulsory)：Caculation (13 points)Let's take an example. Suppose that a share of Haier in the Hong Kong Stock Market had a closing price yesterday of HK $ 10, but new information was announced after the market closed that caused a revision in the forecast of price next year to go to HK $15. If the annual equilibrium return on Haier is 20%, what does efficient markets theory indicate the price will go to today when the market opens? (Assume that Haier pays no dividends.)SECTION SIX(Compulsory)：Explanations of Model (10 points)Please illustrate the macroeconomic-based risk factor models:参考答案SECTION 11. B C D D C ，D C B B ASECTION 2Reading Comprehension: (10 points)1) B was correct!The Treynor-Black model calls for greater weights to stocks with high forecast alpha relative to unsystematic risk. The Sharpe ratio reflects that relationship. To calculate the Sharpe ratio, we subtract the risk free rate from the expected stock returns, and then divide by the stock's standard deviation. Beta is not a measure of unsystematic risk, so it should not be used. Sharpe ratios for the four stocks are as follows: Hearthstone = 27.35%.Imperial = 27.5%.Minster = 46.14%.Kustom Auto = 37.86%.The higher the Sharpe ratio, the higher the level of alpha relative to unsystematic risk. As such, the highest weighting should go to Minster Mask and Costume, the second-highest to Kustom Auto, the third-highest to Hearthstone, and the fourth-highest to Imperial Shipyards.2) A was correct!Index funds appeal to efficient market theorists in part because they offer a low-cost way of investing in the market without trying to exploit infrequent mispricing. While active management of any sort may seem incongruous against the efficient market backdrop, it is active management, or the search for alpha, that clears up mispricings and theoretically leads to market equilibrium. The Treynor-Black model is an optimization framework that assumes markets are nearly efficient but does allow for some active management. The Treynor-Black model assumes a portfolio consisting of index funds, stocks, and the risk-free return. Put options have no place in that model.3) D was correct!As markets become more efficient, alphas shrink, and portfolio managers using the Treynor-Black model will reduce their allocation of actively managed stocks. However, Zeller expects mispricings to increase in the coming months, so he should step up the active management of his portfolios to take advantage of the higher alphas.4) C was correct!The Treynor-Black model assumes forecasts are accurate. Relaxing that assumption requires analysts to place less weight on forecasts. If we discount the value of forecasted alpha, the weighting of the actively managed portion of the portfolio will decrease relative to the index. A higher index weighting is likely to reduce both risk and potential return. The less trust we have in forecasts, the more forecasted alpha is required to justify making a bet on an individual stock. Stocks with marginal alpha will become less appealing, so the number of stocks suitable for investment will decline. The number of stocks in the portfolio is more likely to decline thanto increase. CAPM is very different from the Treynor-Black model, and accounting for inaccurate forecasts does not change that. Portfolio rebalancing is not relevant here.5) B was correct!While one of the stocks is expected to underperform, the index and two of the stocks have lower Sharpe ratios than the index; all have a positive expected alpha. As such, none should be shorted.SECTION 3Explanations of terms：(10 points)1. Margin requirement：Margin requirement refers to that a central bank sets the percentage of loans in the volume of securities transactions for various loans involving securities transactions, such as setting the amount of payment according to the ratio of margin when people purchase securities on credit.2. Interest ceiling：Interest ceiling is the maximum of the interest rate paid by commercial banks on time deposits and savings deposits, the purpose of which is to prevent banks from over competing for deposits by raising interest rates and to avoid credit risk.3. Bank for International Settlements (BIS)：An international organization fosters the cooperation of central banks and international monetary policy makers. Established in 1930, it is the oldest international financial organization, and was created to administer the transaction of monies according to the Treaty of Versailles. Among others, its main goals are to promote information sharing and to be a key center for economic research.4. Bancassurance：The term used to describe the sale of insurance products in a bank. The word is a combination of "banque or bank" and "assurance" signifying that both banking and insurance are provided by the same corporate entity.5. Secondary market：A market in which an investor purchases a security from another investor rather than the issuer, subsequent to the original issuance in the primary market, also called aftermarket.SECTION4Question1：Answer:The mechanism of money supply involves such things as where money comes from, through what channel money comes into circulation or how money is supplied in .an economy, thus forms the movement of money.Money in modern economy is created by the banking system. As we mentioned in Section 1 , the process of money creation involves the central bank, commercial banks, depositors and borrowers, but among them the most important are the central bank and commercial banks. The former has the privilege to provide monetary base and regulate money supply while the latter creates money.Question2：Answer:Stock exchanges are formal organizations. They are made up of members who use the exchange facilities and systems to exchange or trade listed stocks. These exchanges are physical locations where members assemble to trade. Stocks that are traded on an exchange are said to be listed stocks. That is, these stocks are individually approved for trading on the exchange by the exchange. To be listed, a company must apply and satisfy requirements established by the exchange for minimum capitalization, shareholder equity, averageclosing share price, and othercriteria. Even after being listed, exchanges may delist a company's stock if it no longer meets the exchange requirements.To have the right to trade securities or make markets on an exchange floor, firms or individuals must become a member of the exchange, which is accomplished by buying a seat on the exchange. The number of seals is fixed by the exchange and the cost of a seat is determined by supply and demand of those who want to sell or buy seats. In early 2001, there was 1, 366 seats on the NYSE, and the cost of a seat were $2 million.Stock exchanges perform important roles in national economies. Most important, they encourage investment by providing places for buyers and sellers to trade securities. This investment, in turn, enables corporations to obtain funds to expand their businesses.Question3：Answer:As deflation is caused by varied factors, the ways to deal with deflation should be diversified. Generally speaking, deflation is handled with the following measures;(1) Expansionary macroeconomic policiesIn order to enhance the aggregate demand and prevent an economy from sliding into recession when there is a deflation, expansionary monetary and fiscal policies should be applied. On one hand, expansionary monetary policy is used to stimulate effective demand; on the other hand, expansionary, fiscal policy increases government spending to make up insufficient investment in the private sector. During deflation expansionary, fiscal policy is more effective in stimulating the aggregate demand, while monetary policy in short run is slow to show effects which also depends on enterprise and household demand. From 1998 to 2002, the Chinese government raised RMB 6, 600 billion by issuing national debts and the funds have been used in infrastructure construction and played a very important part in increasing the aggregate demand and in gaining an average growth rate of 7. 5%，under the influence of many unfavorable economic variables.(2) Adjustment of production structureThe direct cause of deflation is insufficient effective demand. Insufficient effective demand and excess supply are two sides of a coin. Not only demand should be stimulated, but also excess supply or excess production capacity should be tackled in solving the problem of insufficient demand. As the structural defects of supply causes excess supply, adjustment of production structure is needed in order to weed out excess supply or excess productive capacity. As for adjustment of industrial structure, it is important to escalate industrial structure and find new source of economic growth and form new consumption demand. Meanwhile, foreign markets should be developed and export should be promoted. Usually when there exists excess production capacity, there will be malignant competition in the market. In order to seize market share, there will be continuous price competition so the profit of the whole industry will decline. During the process of fierce competition, some enterprises will be forced to exit the market and there will be more mergers and acquisitions. After that, the malignant market competition will be controlled and price fall caused by the malignant market competition can be possibly avoided.(3) Other counter-measures of deflationBesides the measures mentioned above, the policy of wage and price control is one of countermeasures against deflation. During deflation, a plan to raise wage and prevent prices from declining can be carried out, which has the opposite effect of wage-price guideline during inflation. A government can also intervene stock market with certain policy to push up stock price, which will lead to people's optimistic expectation of future and appreciation of book value of financial assets, hence the effect of wealth increase. In this case, the propensity of consumption of households will be enhanced.So far, some achievements on the study of deflation have been made, but more efforts are needed to look deeply into this economic phenomenon.Question4：Answer:Financial liberalization refers to measures directed at diluting or dismantling regulator，controlling over the institutional structures, instruments and activities of agents in different segments of the financial sector.These measures can relate to internal or external regulations (Chandrasekhar, 2004). Internal financial liberalization typically includes some or all of the following measures, in varying degrees;●The reduction or removal of controls on th e interest rates or rates of return charged by financial agents. Of course, the central bank continues to influence or administer that rate structure through adjustments of its discount rate and through its own open market operations. But deregulation typically removes interest rate ceilings and encourages competition between similarly placed financial firms aimed at attracting depositors on the one hand and enticing potential borrowers to take on debt on the other. As a result, price competition squeezes spreads and forces financial firms (including banks) to depend on volumes to ensure returns.●The withdrawal of the state from the activity of financial intermediation with the conversion of the " development banks" into regular banks and the privatization of the publicly owned banking system, on the grounds that their presence is not conducive to the dominance of market signals in theallocation of capital. This is usually accompanied by the decline of directed credit and the removal of requirements for special credit allocations to priority sectors, whether they are government, small-scale producers, agriculture or other sectors seen as priorities for strategic or developmental reasons.The easing of conditions for the participation of both firms and investors in the stock market by diluting or doing away with listing conditions, by providing freedom in pricing of new issues, by permitting greater freedoms to intermediaries, such as brokers, and by relaxing conditions with regard to borrowing against shares and investing borrowed funds in the market.●The reduction in controls over the investments that can be undertaken by financial agents and, specifically, the breaking down the "Chinese wall" between banking and non-banking activities. Most regulated financial systems sought to keep separate the different segments of the financial sector such as banking, merchant banking, the mutual fund business and insurance. Agents in one segment were not permitted to invest in another for fear of conflicts of interest that could affect business practices adversely. The removal of the regulatory walls separating these sectors leads to the emergence of "universal banks" or financial supermarkets. This increases the inter-linkages between pyramiding financial structures.●The expansion of the sources from and instruments through which firms or financial agents can accessfunds. This leads to the proliferation of instruments such as commercial paper and certificates of deposit issued in the domestic market and allows for offshore secondary market products such as ADRs (American Depository Receipts—the floating of primary issues in the United States market by firms not based in the United States) or GDRs (Global Depository Receipts).The liberalization of the rules governing the kinds of financial instruments that can be issued and acquired in the system. This transforms the traditional role of the banking system's being the principal intermediary bearing risks in the system. Conventionally, banks accepted relatively small individual liabilities of short maturities that were highly liquid and involved lower income and capital risk and made large, relatively illiquid and risky investments of longer maturities. The protection afforded to the banking system and the strong regulatory constraints thereon were meant to protect its viability given the role it played. With liberalization, the focus shifts to that of generating financial assets that transfer risks to the portfolio of institutions willing to hold them.External financial liberalization typically involves changes in the exchange control regime. Typically, full convertibility for current account transactions accompanying trade liberalization have been either prior or simultaneous reforms, which are then complemented with varying degrees of convertibility on the capital account. Capital-account liberalization measures broadlycover the following, in increasing degree of intensity, but with a wide variety of patterns of implementation: SECTION 5CaculationANSWERS:We, based on the above conditions given, get the following equation:SECTION 6Explanationdenotes: the return on a value-weighted index of NYSE-listed stocksdenotes the monthly growth rate in US, industrial productiondenotes the change in inflation, measured by the Us, consumer price index denotes the difference between actual and expected levels of inflationdenotes the unanticipated change in the bond credit spread (Baa yield-RFR) denotes the unanticipated term structure shift (long-term RFR less short-term RFR) The explanation:。

金融英语练习答案(1)

金融英语练习答案(1)《金融英语》练习题答案以下答案仅供参考，不应作为唯一的标准答案。

Unit 1 Finance and Your Career1. Answer the following questions based on the text(1) According to Besley and Brigham, the three main areas of finance are financial markets, investments, and managerial finance (or business finance).(2) Career opportunities in financial markets include working forfinancial institutions, such as banks, insurance companies, savings and loan associations, credit unions, mutual funds, investment banks, etc. Career opportunities in investments involve working for stock brokerage firms, financial institutions, investment companies, or insurance companies. Managerial finance offers the greatest number of jobs and mainly deals with decisions that firms make concerning their cash flows. (3) Graduates in finance in China can find jobs in both financial and non-financial areas. Majority of them can and are willing to find jobs in various financial institutions including banks, insurance companies, securities firms, etc. They can also work in accounting or auditing firms or in the department of finance in various enterprises. Job opportunities in international trade, administrative management, human resource management, and even marketing are also available. Some even start their own small businesses.(4) Because finance plays an important role in management. For example, strategic planning cannot achieve its goals without considering how such plans will affect the overall financial well-being of the firm. (5) It is for the students to answer.2. Translate the following passages into English(1) The analysis on the employment of financial graduates in 2021 showed thatfinancial graduates had chosen the following institutions for their first jobs: a) commercial banks, including the four large-sized state-owned commercial banks, joint-stock commercial banks, city commercial banks, and therepresentatives or branches of foreign banks in China; b) securities companies, fund management companies, and securities and futures exchanges; c) trust and investment companies, financial investment holding companies, investment consulting companies, and large financial companies; d) financial holding groups, the four assets management companies, financial leasing companies, and guarantee companies; e) insurance companies and insurance brokerage companies; f)financial regulatory authorities, such as the Peopl e’s Bank of China, China Banking Regulatory and Supervisory Commission, China Securities Regulatory and Supervisory Commission, and China Insurance Regulatory and Supervisory Commission; g) policy banks, such as the State Development Bankand the Agricultural Bank of China; h) the social securities fund management centers or bureaus; i) State civil servants in governmental organizations,such as the departments of public finance, auditing, and customs; j) facultyof the financial departments of higher educational institutions andresearchers in research institutions; k) the securities and financial departments, representatives of securities affairs, and secretaries tochairmen of the boards of listed companies or companies that will be listed soon.(2) At present, the qualification examinations of the financialpractitioners in Chinainclude: Securities Practitioners Certificate, Certified International Investment Certificate (CIIA), Chartered Financial Analysis (CFA), Sponsor Qualification Certificate, Futures Practitioners Certificate, Insurance Brokerage and Assessment Practitioners Certificate, Financial Planning Analyst, and the Financial English Certificate Test (FECT).3. Translate the following passages into Chinese(1) 当你报名参加注册金融分析师考试时，你就成为一名应试者。

2012年金融英语考试模拟试题(5)_1

2012年金融英语考试模拟试题（5）41．The danger to the exporter in open account trading is that by surrending the shipping documents to the importer，he ______ control of the goods before he has obtained payment for them．A．is inB．losesC．retainsD．gives up42．The primary purpose of showing special types of events separately in the income statement is to ______．A．increase earnings per shareB．minimize the income taxes paid on the results of ongoing operationsC．prevent unusual losses from recurringD．assist users of the income statement in evaluating the profitability of normal，ongoing operations43．If commercial banks have ample excess reserves， a lower discount rate will _______．A．encourage them to borrow moreB．encourage them to raise interest rates on loansC．have little impact on bank behaviorD．increase bank reserves44．A bill of lading is a receipt for goods．When is a bill of lading issued? ______．A．When the shipper makes up the orderB．When the carrier receives the goodsC．When the carrier delivers the goods to the consigneeD．When the manufacturer produces the goods45．ABC Co．Ltd．sold marketable securities costing $80 000 for $92 000 cash．In the company's income statement and statement of cash flows，respectively，this will appear as ______．A．a $12 000 gain and a $92 000 cash receiptB．a $92 000 gain and a $80 000 cash receiptC．a $12 000 gain and a $80 000 cash receiptD．a $92 000 sale and a $92 000 cash receipt46．Which of the following central bank actions would be appropriate to combat rapid inflation? ______．A．A reduction in the discount rateB．A reduction in reserve requirementsC．A cut in taxesD．A sale of government securities47．In a currency pair，the first currency is referred to as ______ and the second as ______．A．the base currency…the counter currencyB．the quote currency…the base currencyC．the base currency…the exchange currencyD．the trade currency…the base currency48．What is the expected return of a zero－beta security? ______．A．Market rate of returnB．Zero－rate of returnC．Risk－free rate of returnD．Negative rate of return49．Capital asset pricing theory asserts that portfolio returns are best explained by ______．A．economic factorsB．systematic riskC．specific riskD．diversification50．The______ informs the beneficiary that another bank has issued a credit in his favor without adding its own engagement．A．advising bankB．confirming bankC．drawee bankD．issuing bank。

2012年金融英语考试模拟试题及答案(2)

2012年金融英语考试模拟试题及答案(2)SECTION ONE (Compulsory) :Single-choice questions.from the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points)1）Which of the following will NOT cause a shift in the demand for baseballs? ( )A. Very good weather.B. A decrease in the price of baseball hats.C. The consumers’ expectations.D. An increase in the price of baseballs.2）Decreasing returns to scale may arise from ( )A. Specialization of inputs.B. Duplication of plant and equipment at equal cost.C. Inefficiencies in management.D. Using inputs in unequal proportions.3）If the marginal rate of technological substitution (MRTS) is more than the price ratio of labor over capital (w/r), then to minimize cost the firm should ___ the input of capital and ___ the input of labor.A. Increase, decreaseB. Decrease, increaseC. Decrease, decreaseD. Increase, increase4）The price of a good changes, both the substitution effect and the income effect reinforce each other, then the good is a (n) ( )A. Normal good.B. Inferior good.C. Giffen good.D. None of the above5) What market is the Most in need of the advertising? ( )A. Fully competitive marketB. Monopolize marketC. Competitive monopoly marketD. Oligopoly market6) American economist Modigliani’s life-cycle hypothesis is that: ( )A. based on the current income to make consumer decisionsB. Work time after retirement savings for the consumer financeC. based on income to make the lasting consuming decision-makingD. revenue in the consumer durable basis for decision-making to the impact of temporary revenue estimates into account7）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）The prices of meat products in a competitive market are determined by: ( )A. Government.B. Business monopolies.C. Supply and demand.D. The Consumer Price Index.10）Which one of the following is most likely to improve the wages of American workers? ( )A. An increase in business inventories.B. An increase in productivity.C. An increase in interest rates.SECTION TWO(Compulsory): Reading Comprehension (10 points)Monica Lewis, CFA, has been hired to review data on a series of forward contracts for a major client. The client has asked for an analysis of a contract with each of the following characteristics:A forward contract on a U.S. Treasury bondA forward rate agreement (FRA)A forward contract on a currencyInformation related to a forward contract on a U.S. Treasury bond: The Treasury bond carries a 6 percent coupon and has a current spot price of $1,071.77 (including accrued interest). A coupon has just been paid and the next coupon is expected in 183 days. The annual risk-free rate is 5 percent. The forward contract will mature in 195 days.Information related to a forward rate agreement: The relevant contract is a 3 x 9 FRA. The current annualized 90-day money market rate is 3.5 percent and the 270-day rate is 4.5 percent. Based on the best available forecast, the 180-day rate at the expiration of the contract is expected to be 4.2 percent.Information related to a forward contract on a currency: The risk-free rate in the U.S. is 5 percent and 4 percent in Switzerland. The current spot exchange rate is $0.8611 per Swiss France (SFr). The forward contract will mature in 200 days.1) Based on the information given, what initial price should Lewis recommend for a forward contract on the Treasury bond? ( )A. $1,035.12.B. $1,073.54.C. $1,053.66.D. $1,070.02.2) Suppose that the price of the forward contract for the Treasury bond was negotiated off-market and the initial value of the contract was positive as a result. Which party makes a payment and when is the payment made? ()A. The long pays the short at the maturity of the contract.B. The short pays the long at the initiation of the contract.C. The short pays the long at the maturity of the contract.D. The long pays the short at the initiation of the contract.3) Suppose that instead of a forward contract on the Treasury bond, a similar futures contract was being considered. Which one of the following alternatives correctly gives the preference that an investor would have between a forward and a futures contract on the Treasury bond? ()A. The futures contract will be preferred to the forward contract.B. An investor would be indifferent between the two types of contracts.C. It is impossible to say for certain because it depends on the correlation between the underlying asset and interest rates.D. The forward contract will be preferred to the futures contract.4) Based on the information given, what initial price should Lewis recommend for the 3 x 9 FRA? ()A. 4.96%.B. 4.66%.C. 5.96%.D. 5.66%.5) Based on the information given and assuming a notional principal of $10 million, what value should Lewis place on the 3 x 9 FRA at time of settlement? ()A. $38,000 paid from short to long.B. $19,000 paid from long to short.C. $37,218 paid from long to short.D. $19,000 paid from short to long.SECTION THREE(Compulsory)：Explanations of terms(25 points)1. Security market line2. Negotiable certificates of deposit3. Risk premium4. Financial leasing5. Asset Price VolatilitySECTION FOUR：Answer Questiones(32 points)1.What is the segmented markets theory?2. What Are the Recent Trends in Reserves？3. Factors Affecting Choice of Investment Securities.4.What is Behavioral Finance Theory?SECTION FIVE：Caculation(13 points)In 2008, Chinese consumption ( C) is 100 billion yuan ,and its investment(I) is 80 billion yuan, and its government expenditures ( G) is 50billion yuan, and its net exports (X - M) is 60billion.Please calculate the the value of total domestic output (Y) according to the absorption approach.SECTION SIX：CLOSE(10 points)Do you think what the effects of monetary and fiscal policies on a nation’s external balance are? And then fill in the blank.(a) monetary policy(a) fiscal policySECTION 11. D C B A C ，B C D C BSECTION 2Reading Comprehension: (10 points)1) The correct answer was D!The forward price (FP) of a fixed income security is the future value of the spot price net of the present value of expected coupon payments during the life of the contract. In a formula: FP = (S0 –PVC) x (1 + RF) TA 6 percent coupon translates into semiannual payments of $30. With a risk-free rate of 5 percent and 183 days until the next coupon we can find the present value of the coupon paymentsfrom:PVC = $30/ (1.05)183/365 = $29.28.With 195 days to maturity the forward price is:FP = ($1,071.77 –$29.28) x (1.05)195/365 = $1,070.02.2) The correct answer was D!If the value of a forward contract is positive at initiation then the long pays the short the value of the contract at the time it is entered into. If the value of the contract is negative initially then the short pays the long the absolute value of the contract at the time the contract is entered into.3) The correct answer was D!The forward contract will be preferred to a similar futures contract precisely because there is a negative correlation between bond prices and interest rates. Fixed income values fall when interest rates rise. Borrowing costs are higher when funds are needed to meet margin requirements. Similarly reinvestment rates are lower when funds are generated by the mark to market of the futures contract. Consequently the mark to market feature of the futures contract will not be preferred by a typical investor.4) The correct answer was A!The price of an FRA is expressed as a forward interest rate. A 3 x 9 FRA is a 180-day loan, 90 days from now. The current annualized 90-day money market rate is 3.5 percent and the 270-day rate is 4.5 percent. The actual (unannualized) rates on the 90-day loan (R90) and the 270-day loan (R270) are:R90 = 0.035 x (90/360) = 0.00875R270 = 0.045 x (270/360) = 0.03375The actual forward rate on a loan with a term of 180 days to be made 90 days from now (written as FR (90, 180)) is:Annualized = 0.02478 x (360/180) = 0.04957 or 4.96%.5) The correct answer was C!The value of the FRA at maturity is paid in cash. If interest rates increase then the party with the long position will receive a payment from the party with a short position. If interest rates decline the reverse will be true. The annualized 180-day loan rate is 4.96 percent. Given that annualized interest rates for a 180-day loan 90 days later are expected to drop to 4.2 percent, a cash payment will be made from the party with the long position to the party with the short position. The payment is given by:The present value of the FRA at settlement is:38,000 / [1+ (.042 x 180/360)] = 38,000 / 1.021 = $37,218SECTION 3Explanations of terms：(10 points)1. Security market line: Derived from the capital asset pricing model, a linear relationship between the expected returns on securities and the risk of those securities, with risk expressed as the security’s ft (or equivalently, the security’s covariance with the market portfolio).2. Negotiable certificates of deposit: Bank-issued time deposit that specifies an interest rate and maturity date and is negotiable (saleable on a secondary market).3. Risk premium: The difference between the yield on a financial instrument and the yield ona default-risk-free instrument of comparable maturity. It measures the additional yield a saver requires to be willing to hold a risky instrument.4. Financial leasing: Financial leasing is a contract in which the service provided by the lessor to the lessee is limited to financing equipment.5. Asset Price V olatility: Not all financial instability is associated with the fragility of institutions. Instability in markets, i. e., unjustified or excessive volatility of financial asset prices, can be a matter of just as much concern. This is not only because asset price volatility can be associated with problems for the institutions that are active in the markets concerned, but because changes in financial asset prices have direct effects on private sector spending. These effects occur as a result of changes in the private sector’s stock of wealth, because of the effect of changes in the rate of return on incentives to save and invest, and sometimes because of implications for business and consumer confidence more generally.SECTION 4Question1：Answer:This theory of the term structure suggests that the market for funds is segmented between those who supply funds and those demanding funds at each different maturity. The interest rate for each kind of securities with a different maturity is then determined by the supply of and demand for that kind of securities with no effects from expected returns on other securities with different maturities. According to this theory, both lenders and borrowers of funds have strong preference for particular maturities.Question2：Answer:Comparisons of reserve holdings across countries and over time need to be scaled to reflect countries’characteristics and changes therein over time. Based on the foregoing discussion of the main factors that influence a country’s level of reserve holdings, three scaling methods are considered.●Months of imports. This ratio represents the number of months for which a country can support its current level of imports if all other inflows and outflows stop.●Short-term external debt based on remaining maturity. This ratio is an indicator of the likelihood and depth of a financial crisis, as it reflects the country’s ability to service external debt falling due in the coming year if external financing conditions deteriorated sharply.●Broad money. Like the ratio to short-term external debt, this ratio is an indicator of reserve adequacy in the event of a financial crisis, as it reflects the potential for resident-based capital flight from the domestic currency.These three reserve ratios are calculated for the standard set of selected emerging market economies (data limitations preclude calculations for all emerging market countries).Reserve ratios in emerging market countries have generally increased over the past decade. Since the mid-1990s, the ratios of reserves to short-term debt and reserves to imports has increased most sharply for emerging economies in Asia, while the ratio of reserves to broad money has risen quickly for emerging market countries outside Asia and Latin America. This divergence is not surprising, given that the data for Asia are dominated by China, which is less financially developed and therefore a country in which high savings are typically channeled into bank deposits. The main exception to the general increase in reserves is Latin America, where the ratio of reserves to imports declined during the second half of the 1990s but that decline has partly reversed in 2002. Within emerging economies in Asia, both economies with limited exchange rateflexibility and those with managed floating exchange rates experienced large increases in reserves.Question3：Answer:The investments officer of a bank or other financial institutions must consider several factors when deciding which investment securities to buy, sell, or hold.1. Expected Rate of ReturnThe investments officer must determine the total rate of return that can reasonably expected from each security, including the interest payments promised by the issuer of that security and possible capital gains of losses. For most investments, this requires the investment manager to calculate the yield to maturity (YTM) if a security is to be held to maturity or the planned holding period yield (HPY) between point of purchase and point of sale.2. Tax ExposureInterest and capital gains income from investments held by U. S. banks are taxed as ordinary income for tax purposes, just as the wages and salaries earned by most U. S. citizens. Because of their relatively high tax exposure, banks are more interested in the after-tax rate of return on loans and securities than in their before-tax return. This situation contrasts with such institutions as credit unions and mutual funds, which are generally tax-exempt.3. Interest Rate RiskChanging interest rates create real risk for investments officers and their institutions. Rising interest rates lower the market value of previously issued bonds and notes, with the longest-term security issues generally suffering the greatest losses.4. Credit or Default RiskThe security investments made by banks and by their closest competitors are closely regulated due to the credit risk displayed by many securities, especially those issued by private corporations and some local governments.5. Business RiskBanks and other financial institutions of all sizes face significant risk that the economy of the market area they serve may turn down, with falling business sales and rising bankruptcies and unemployment.6. Liquidity RiskBanks and competing financial institutions must be ever mindful of the possibility they will be required to sell investment securities in advance of their maturity due to liquidity needs and be subjected to liquidity risk. Thus, a key issue that a portfolio manager must face in selecting a security for investment purposes is the breadth and depth of its resale market.7. Call RiskMany corporations and some governments that issue investment securities reserve the right to call in those instruments in advance of their maturity and pay them off. Because such calls usually take place when market interest rates have declined (and the borrower can issue new securities bearing lower interest costs) , the financial firm investing in callable bonds and notes runs the risk of an earnings loss because it must reinvest its recovered funds at today’s lower interest rates.8. Prepayment RiskA form of risk specific to certain kinds of investment securities—especially asset-backed securities—that financial firms buy for their investment portfolios is known as prepayment risk.This form of risk arises because the realized interest and principal payments (cash flow) from a pool of securitized loans, such as GNMA or FIN MA pass-throughs, collateralized mortgage obligations (CMOs ) , or securitized packages of auto or credit card loans, may be quite different from the payments (cash flow) expected originally.9. Inflation RiskWhile there is less of a problem today than in some earlier periods, banks and other investing institutions must be alert to the possibility that the purchasing power of both the interest income and repaid principal from a security or loan will be eroded by rising prices for goods and services. Inflation can also erode the value of the stockholders’investment in a bank or other institution—its net worth. Some protection against inflation risk is provided by short-term securities and those with variable interest rates, which usually grant the investments officer greater flexibility in responding to any flare-up under inflationary pressures.10. Pledging RequirementsDepository institutions in the United States cannot accept deposits from federal, state, and local governments unless they post collateral acceptable to these governmental units in order to safeguard the deposit of public funds. Sometimes the government owning the deposit requires that the pledged securities be placed with a trustee not affiliated with the institution receiving the deposit. If a bank or another financial institution uses repurchase agreements (RPs) to raise money, it must pledge come of its securities (usually U. S. Treasury and federal agency issues) as collateral in order to receive funds at the low RP interest rate.Question4：Answer:(1) During the last decade, a new branch of financial economic theories has been developed, which is referred to as Behavioral Finance Theory. The theory is focused on the analysis of various psychological traits of individuals and how these traits affect the ways by which they act as investors, analysts, and portfolio managers. As noted by Olsen, behavioral finance recognizes that the standard finance model of rational behavior and profit maximization can be true within specific boundaries, but advocates of behavioral finance assert that this model is incomplete since it does not consider individual behavior. In detail, behavioral finance seeks to understand and predict systematic financial market implications of psychological decision processes. Behavioral finance is focused on the implication of psychological and economic principles for the improvement of financial decision making.(2)While it is accepted that currently there is no unified theory of behavioral finance, the emphasis has been on identifying portfolio anomalies that can be explained by various psychological traits in individuals or groups or rare instances where it is possible to experience above-normal rates of return by exploiting the biases of analysts or portfolio managers.(3)Recently, it has been noted that investors have a lot of biases that negatively affect their investment performance. Advocates of behavioral finance have been able to explain a lot of these biases based on psychological characteristics. A major documented bias is the propensity of investors to hold on to losing positions too long and sell "winners" to soon. The point is, investors fear losses much more than they value gains.(4)Another bias is overconfidence in forecasts, which causes analysts to overestimate growth rates for growth companies. In addition, they overemphasize good news for firms evaluated and ignore negative news items—that is, they generally believe that the stocks of the growthcompanies will be "good" stocks. This is referred to as "confirmation bias", where investors look for information that supports their prior opinion and decision. As a result, they tend to disvalue the stocks.A study by Brown examined the effect of "noise traders" (nonprofessionals with no special information) on the volatility of closed-end mutual funds. When there is a shift in sentiment, these traders move heavily, that increases the prices and the volatility of these securities during trading hours. It is certified that the noise traders tend to follow newsletter writers, who in turn tend to "follow the herd"; and these writers and "the herd" are almost always wrong, which contributes to excess volatility. The difficult psychological factor is to seriously look for the bad news and consider the effects of that negative information on your prior valuation.SECTION 5CaculationANSWERS:The absorption approach starts with the idea that the value of total domestic output (Y) equals the level of total spending. Total spending consists of consumption ( C), investment(I), government expenditures ( G), and net exports (X - M). This can be written asY = C + I + G + (X-M)The absorption approach then consolidates C +1 + G into a single term, which is referred to as absorption, and designates net exports (X - M) as B. Totaldomestic output thus equals the sum of absorption plus net exports, orY = A +BThis can be rewritten asB = Y -AThis expression suggests that the balance of trade (B) equals the difference between total domestic output (Y) and the level of absorption (A ). If national output exceeds domestic absorption, the economy’s trade balance will be positive. Conversely, a negative trade balance suggests that an economy is spending beyond its ability to produce.SO the result is :Y=100+80+50+60=290A=100+80+50=230SECTION 6Close:(1) Interest Rates fall(2) Net capital outflows(3) Trade account worsens(4) Increase in government spending(5) Money demand rises(6) Trade account worsens。

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2012年金融英语考试模拟试题及答案(1)SECTION ONE (Compulsory)：Answer all ten questions in this section. Each question carries 1 mark.1. Multiple-choice questions: from the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points)1. Only what happens if the supply is less than demand? （）A. actual price is lower than the equilibrium priceB. actual price is higher than the equilibrium priceC. equilibrium price equivalent to the actual priceD. eliminate the scarcity of goods2. When the Consumer income and established conditions for commodity prices is still, consumers can buy the two commodities to the greatest number of combinations. What did the Line call? （）A. No difference curveB. consumption may LineC. Line and its outputD. enterprise budget line3. Opportunity cost: （）A. Is always measurable in money terms.B. Is an indicator of productivity performance.C. Relates peculiarly to business affairs alone.D. Measures the cost of doing "x" in terms of what else might be done.4. The normal downward slope of demand curves is necessarily explained by: （）A. Growth in the size of the population.B. The adroitness of advertisers.C. Limited spending power.D. Technological advance.5. For a closed two-good economy, the output of the two goods should be at the point where: （）A. The highest indifference curve touches the production possibility curve.B. The lowest indifference curve touches the production possibility curve.C. The indifference curve crosses the production possibility curve.D. The marginal cost curve touches the production possibility curve.6. The "J-curve" shows that following depreciation: （）A. The quantity of exports falls, making the current account balance worse.B. Here is an initial drop in imports but this is later reversed.C. The cost of imports rises immediately from the price effect, worsening the current account bal-ance, but later quantities of imports and exports respond and the current account balance im-proves.D. There is an improvement in the balance of payments so long as the Marshall-Lerner conditions are met.7. Which of the following statements about standby letters of credit is true? :（）A. They can serve as a guarantee to a buyer against a seller defaultingB. They are contrary to the general rule that letters of credit may only be used for the actual movement of 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 date8. What information would you find in a statement of cash flows that you would not be able to get from the other two primary financial statements? （）A. Cash provided by or used in financing activitiesB. Cash balance at the end of the periodC. Total liabilities due to creditors at the end of the periodD. Net income9. Which of these best describes the U.S. Federal Reserve? （）A. Responsible for monetary policy/money supplyB. Prints money.C. Keeps the country out of debt.D. Helps people in need.10. What is the basic purpose of profits in our market economy? （）A. Pay for wages and salaries of workers.B. Lead businesses to produce what consumers want.C. Transfer income to the wealthy.D. All of the above.SECTION TWO(Compulsory)：Answer the questions in this section.Reading Comprehension: (10 points)Laura James is the head portfolio manager for National Fund, a U.S. based mutual fund with a well-respected track record. National’s primary focus is on large-cap domestic equities, and the fund has consistently posted high returns relative to its peer group over the past seven years. Much of National’s recent success is from its investments in the U.S. automobile industry, which have posted extraordinary returns due to a favorable economic scenario. Over the past seven years, the U.S. economy has been expanding, foreign competition has not met consumer expectations, and oil prices have remained low. These factors have contributed to an increase in market share for the domestic producers (at the expense of foreign competitors), and the result has been strong earnings for the top U.S. automakers.Ford Motor Company, in particular, has enjoyed tremendous success in this environment. Ford has capitalized on the trend toward bigger vehicles, particularly sport utility vehicles (SUVs), and has outperformed the other domestic auto makers. Ford jumped on the SUV bandwagon early, and established its dominance. Other domestic auto makers followed, with foreign producers being the last to embrace the trend. Ford has increased its market share in an increasingly competitive industry.James is constantly reviewing economic forecasts and industry data in order to assess the expected performance of the investments in National’s portfolio. Due to changes in economic policy and recent volatility in energy prices, James now believes that current market conditions exhibit signs of contraction (recession). In addition, the automobile sector may be facing additional negative factors. In particular, James has concerns regarding the SUV segment of the automobile industry. Although she believes they will remain popular, she is concerned that the market may be reaching a point of saturation. In addition, volatile energy prices may dampenconsumers’enthusiasm for large vehicles. Lastly, foreign competitors have increased efforts toward the production of SUVs, thus “crowding”the market with many new models.Part 1)Assume an industry exhibits tendencies of “regression toward the mean.”This could mean all of the following EXCEPT: （）A. Profits are high and competition increases from other firms in the industry.B. Profits increase as firms enter the industry.C. Profits are low and firms flee the industry.D. Prices could increase or decrease depending on the level of profits.Part 2)In a recessionary environment, an automaker such as Ford would be expected to: （）A. Produce higher end vehicles.B. Maintain the same product mix as 5 years ago.C. Gain market share if it produces high end vehicles.D. Produce lower end vehicles.Part 3)Assume domestic automakers are growing at a rate of –2%. Ford expects to increase its market share by 0.5%. What is Ford’s growth rate? （）A. 1.5%.B. -3.0%.C. -1.5%.D. 3.0%.Part 4)Suppose instead that Ford’s growth of firm sales is expected to be –3% and the growth of industry sales is 1%. What is Ford’s expected change in market share? （）A. 3%.B. -3%.C. -4%.D. 4%.Part 5)Which of the following scenarios would be most likely to have a positive impact on Ford’s market share? （）A. New carmakers enter the market.B. An increase in its marketing budget.C. War with an oil producing country.D. The overall number of cars sold increases.Explanations of terms：(10 points)1. Official interest rate2. Fiat money3. GDP4. Mean5. Primary marketsQuestion3: What are the basic objectives of economic policies?Question4: What is the Money Market Mutual Funds?Question5: Why Should I Lease Equipment Instead of Buy？Quetion6：Tell us The Practice of China’s Monetary Policy since Economic Reform and Opening up briefly? 1. B A D C A，C A C A BReading Comprehension: (10 points)Part 1)Your answer: B was correct!Profitability in a particular industry attracts competition from other firms, which then forces prices down, eventually reducing profits back to a long-run normal level. The opposite holds true for industries experiencing losses.Part 2)Your answer: D was correct!During economic downturns, producers of low-cost products increase their market share at the expense of high-cost producers. This also is true within firms that produce various priced products.Part 3)Your answer: B was incorrect. The correct answer was C!(1 + growth of firm sales) = (1 + growth of industry sales) x (1 + fractional change of market share)= 0.98 x 1.005= 0.9849Growth of firm sales = –1.51%Part 4)Your answer: B was incorrect. The correct answer was C!0.97 = 1.01 x (1 + x)0.9604 = 1 + x–3.96% = xPart 5)Your answer: The correct answer was B!An increase in its marketing budget.The percentage change in a firm’s market share is directly proportional to the percentage change in its marketing expenditures. An increase in the overall number of cars sold would not necessarily change Ford’s market share. New competition would be negative, as would war, as Ford’s share of the SUV market (gas guzzlers) is large.Explanations of terms：(10 points)1. Official interest rate ：Official interest rate is the rate set by the central bank or monetary authorities. The interest rate is one of levers used by governments to regulate economy.2. Fiat money：Money proclaimed to be money by fiat or government decree is sometimes called fiat money.3. GDP：The monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.4. Mean：A measure of central tendency of the probability distribution of a random variable that equals the weighted average of all possible outcomes using their probabilities as weights.5. Primary markets：Financial markets in which newly issued debt or equity claims are sold to initial buyers by private borrowers to raise funds for durable-goods purchases or new ventures and by governments to finance budget deficits.Question3：Answer:Since the Great Depression of the 1930s, governments have actively pursued the goal of economic stability at full employment. Known as internal balance, this objective has two dimensions; (D a fully employed economy, and ©no inflation—or, more realistically, a reasonable amount of inflation. Nations traditionally have considered internal balance to be of primary importance and have formulated economic policies to attain this goal.Policy makers are also aware of a nation’s balance-of-payments (BOP) position. A nation is said to be an in external balance when it realizes neither BOP deficits nor BOP surpluses. In practice, policy makers usually express external balance in terms of a BOP sub account, such as the current account. In this context, external balance occurs when the current account is neither so deeply in deficit that the home nation is incapable of repaying its foreign debts in the future nor so strongly in surplus that foreign nations cannot repay their debts to it. Although nations usually consider internal balance to be the highest priority, they are sometimes forced to modify priority when confronted with large and persistent external imbalances.Question 4Answer:The money markets are wholesale markets where most securities trade in large denominations. This characteristic effectively blocks most individuals from investing directly in these securities. However, the markets usually find a way to correct for such deficiencies, especially when potential customers are available. Money market mutual funds represent one such correction.Money market mutual funds (MMMFs) are funds that aggregate money from a group of small investors and invest it in money market. They have grown enormously popular since their inception in the early 1970s because they provide a means for small investors to take advantage of the returns offered on money market securities. These securities would be out of reach to most small investors because of their large minimum denominations.Question5：Answer:(1) Leasing is flexible. Companies have different needs, different cash flow patterns, different irregular streams of income. For example, start-up companies typically are characterized by little cash and limited debt lines. Mature companies might have other needs: to keep debt lines free, to comply with debt covenants, and to avoid committing to equipment that may quickly become obsolete. Therefore, your business conditions—cash flow, specific equipment needs, and tax situation—may help define the terms of your lease. Moreover, a lease provides the use of equipment for specific periods of time at fixed rental payments. Therefore, leasing allows you to be more flexible in the management of your equipment.(2) Leasing is practical. By leasing, you transfer the uncertainties and risks of equipment ownership to the lessor, which allows you to concentrate on using that equipment as a productivepart of your business.(3) Leasing is cost effective. Equipment is costly and some of the costs are unexpected. When you lease, your risk of getting caught with obsolete equipment is lower because you can upgrade or add equipment to best meet your needs.Further, your equipment needs can change over time due to changes in your company, such as diversification. Leasing allows you to stay on the cutting edge of technology. Sophisticated business managers have learned that the primary benefits of higher productivity and profit come from the use of equipment, not owning it.(4) Leasing has tax advantages. Rather than dealing with depreciation schedules and Alternative Minimum Tax (AMT) problems, you, the lessee, simply make the lease payment and deduct it as a business expense.(5) Leasing helps conserve your operating capital. Leasing keeps your lines of credit open. You don’t tie up your cash in equity. Also, you avoid costly down payments. With other advantages such as offbalance sheet financing, leasing helps you better manage your balance sheet.Question6：Answer:Under the traditional planned economic system, there were only such concepts as credit management, cash management and so on. As a comprehensive concept monetary policy came into being in China in the process of economic reform and establishment of the market economy when the experience of money and credit management in western countries was used for reference.China’s monetary policy, in general sense, is the same as the concept of monetary policy in western economics, including such factors as operating instruments, operating targets, intermediate targets and final targets. The impact of monetary policy on China’s macro-economy is produced through the transmission of those factors one by one.(1) The final targets of China’s monetary policyThe present final target of China’s monetary policy is “to maintain a steady currency and promote economic growth". Price stability is the precondition and basis of normal operation of economy. If too much money is issued and inflation occurs, it is hard to control market prices, stabilize people’s living standard and maintain steady economic growth. Economic development in turn provides material base for stabilizing currency. Only by supporting the reasonable demand for productive funds and increasing supply of commodities needed in the market can there be a reliable material base for steady currency.(2) The operating and intermediate targets of China’s monetary policyBefore 1984 when the PBC functioned as a central bank, the operating and intermediate targets of monetary policy were credit quota and the amount of cash issue. After 1984, the central bank lending to financial institutions was included in "operating targets" and has become important ever since. In 1993, the Decision on Financial Reform issued by the State Council stipulated that intermediate and operating targets are “money supply, the total credit, and the inter-bank offered rate and bank reserve rate". In 1995, the PBC started its attempt to take M, and M2 as the intermediate target. In 1996, the PBC regularly adopted M and M2 in the intermediate targets of its monetary policy.(3) The monetary policy instrumentsUp to now, credit plan and cash plan have been the basic monetary policy instruments in China. But officially set deposit and lending interest rates, basic interest rate, required reserve ratio, bank reserve rate, the central bank lending rate, discount rate, special deposits and open market operations have become monetary policy instruments one after another and played a more and more important role. The Law of the People’s Republic of China on the People’s Bank of China passed in March 1995 stipulates that monetary policy instruments are reserve requirement, basic interest rate, the central bank lending rate, discount rate, open market operations and other monetary policy instruments set by the State Council. So the system of monetary policy instruments that conform to the socialist market economy has been lawfully set up.With the establishment of socialist market economy the gradual shift from direct to indirect monetary policy instruments has greatly improved transmission mechanism of monetary policy and effectiveness of macroeconomic management in China. But in a transition period the potency of monetary policy is still subject to various factors as follows：●Government’s intervention. In economic activities, intervention by governments at each level is still strong. It is not rarely seen that local governments often force banks to make loans for the sake of development of local economy, which interferes the independence of the central bank’s monetary policy and blurs monetary policy targets, so monetary policy instruments are partly ineffective.●Less developed markets. In the transition period market mechanism is not perfect while the planned mechanism has lost much of its share. So the vacuum in management of national economy appears. As a result distribution of resources is in disorder and the contradiction in economic structure is obvious. The central government has to increase investment in order to better economic structure, so it’s hard to contract investment size, wipe out investment expansion of fixed assets and control the money supply. So implementation of monetary policy of the central bank is interfered with.●Imperfect self-constraint mechanism of financial institutions. As China’s financial institutions are still under reform, their behavior is not standardized because of imperfect self-constraint mechanism. So the impact of the central bank’s monetary policy on reserves of financial institutions is not sure and the operating targets can not respond sensitively.●Lack of self-constraint mechanism of enterprises. In order to maintain certain increasing rate of production enterprises in China have a strong demand for funds from outside as they usually have low level of accumulation. At present the supply of funds from outside enterprises mainly comes from commercial bank. It places great pressure on the credit control by commercial banks and the central bank and is harmful to the central bank’s control on the money supply.●Less developed financial markets with fewer types and amount of financial assets. As there is fewer types and amount of financial assets it’s difficult for the open market operation to play its role in regulating macro-economy. To sum up, the central bank’s experience in managing macro economy has been richer and its ability to adapt to new environment has become stronger with the deepening of China’s economic and financial reform. Though there are short points existing in both micro-entities and the central bank, it-is true to the fact that the operation of monetary policy in China is becoming more and more experienced. 来源:考。