金融英语练习1.doc

1.Which of the following is not a function of money？ _。 A.To act as a medium of exchangeB.To act as a unit of accountC.To act as a store of valueD.To provide a double coincidence of wantsE.To act as a means of payment2.The price in the foreign exchange market is called _。A.the trade surplusB.the exchange rateC.the money priceD.the currency rate3.Market risk refers to the risk of_。A.financial prices fluctuationsB.defaultC.fraudD.deferred payments4.Which of the following is not among the generally accepted accounting principles？ _。A.Cash basisB.PrudenceC.ConsistencyD.Going concernE.Money measurement。5.What is a documentary letter of credit？ _。A.A conditional bank undertaking to pay an exporter on production of stipulated documentationB.A method of lending against documentary securityC.An international trade settlement system biased in favour of importersD.All of the above6.Holding a group of assets reduces risk as long as the assets _。A.are perfectly correlatedB.are completely independentC.do not have precisely the same pattern of returnsD.have a correlation coefficient greater than one7.An amount， payable in money goods， or service， owed by a business to a creditor， is known as a/an 。A.liabilityB.debtC.equityD.asset8.What function is money serving when you buy a ticket to a movie？ _。A.store of valueB.a medium of exchangeC.transaction demandD.a unit of account9.If foreigners expect that the future price of sterling will be lower， the _。A.supply of sterling will increase， demand for sterling will fall， and theexchange rate will fallB.supply of sterling will increase， demand for sterling will rise， and theexchange rate may or may not increaseC.supply of sterling will fall， demand for sterling will increase， and the exchange rate will riseD.supply of sterling will fall， demand for sterling will fall， and the exchange rate may or may not fall10.The documentary collection provides the seller with a greater degree of protection than shipping on _。A.open accountB.banks letter of guaranteeC.bankers draftD.documentary credit40.Incoterms apply _。 A.only if clearly incorporated into the contract of saleB.to International shipments beyond a certain tonnageC.to international shipments under the Uniform Commercial CodeD.to all international shipments of goods41.Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract？ _。A.Import of goods priced in a foreign currencyB.Import of goods priced in RMBC.Export of goods priced in RMBD.Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract42.Incoterms address _。A.the risks of loss between the partiesB.breaches of contractC.ownership rightsD.type of ship used43.Which of the following is or was an example of representative full-bodied money？ _。A.Debt moneyB.ATS accountC.Gold certificateD.Demand deposit44.Risks associated with investing in foreign countries are the following except _。A.voting riskB.exchange rate riskC.country riskD.political risk45.An exporter sells goods to a customer abroad on FOB and on CIF term.Who is responsible for the freight charges in each？ _。A.Exporter； ExporterB.Exporter； ImporterC.Importer； ImporterD.Importer； Exporter46.Default risk refers to the possibility that a borrower may _。A.be unable to repay the principal on his loanB.be unable to make the interest payments on his loanC.go bankrupt D.all of the above47.What is the reserve requirement？ _。A.The requirement of a bank to deposit a percentage of moneyB.The requirement for deposits in cashC.The percentage of a banks deposits in the form of cash reservesD.The requirement for cash reserves48.A draft is like a check that can be endorsed but it isnt a title to goods， like _。A.a bill of ladingB.an inspection certificateC.a certificate of originD.an insurance certificate49.Arbitrage _。A.is a general economic term for buying something where it is cheap and selling it where it is dearB.keeps exchange rates consistent across marketsC.has been outlawed by the International Monetary FundD.cannot occur where there is a forward exchange marketE.both A and B50.What is the purpose of comparing the ledger entries with the documents？ _。A.To prove that all the transactions have made for the right amountsB.To prove that all the accounts have been posted correctlyC.To check the number of all the debits and creditsD.To post the right accounts69.A barter economy is one that does not possess _。 A.any wealth B.printed currencyC.a medium of exchange D.gold70.Which of the following is not true of airway bill？ _。A.When goods are delivered to the airline， the airway bill is signed by them or their agents as a receipt of the goodsB.Airway bill is a document of title to the goodsC.Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flightD.None of the above71.The value of money varies _。A.directly with the unemployment rateB.directly with the price levelC.inversely with the unemploymentD.inversely with the price level72.The economics news on the television reports that the dollar has strengthened relative to the Japanese yen.This means that _。A.the dollar has depreciated relative to the yenB.the dollar can now purchase more yenC.the yen can now purchase more dollarsD.the US trade balance with the Japanese economy has improved73.The theory of international exchange that holds that exchange rates are set so that the price of similar goods in different countries is the same is the _。A.price feedback theoryB.trade feedback theoryC.purchasing power parity theoryD.J-curve theory74.According to the optimal portfolio theory， where should portfolios lie？ _。A.On the efficient frontierB.Above the efficient frontierC.Under the efficient frontierD.Anywhere， as long as the portfolio is diversified75.Which of the following is not a user of management accounting information？ _。A.Store managerB.CreditorC.CEOD.CFO76.Based on the scenarios below， what is the expected return for a portfolio with the following return profile？ _。Market ConditionA.4%B.10%C.20%D.25%Use the following expectations on Stocks X and Y to answer questions 17 through 19 （round to the nearest percent）。77.Financial markets serve to channel funds from _。A.the government to contractorsB.investors to consumersC.consumers to producersD.savers to investors78.The agreements that were reached at the Bretton Woods conference in 1944 established a system 。A.of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed-upon value of its currencyB.of floating exchange rates determined by the supply and demand of one nations currency relative to the currency of other nationsC.that prohibited governments from intervening in the foreign exchange marketsD.in which the values of currencies were fixed in terms of a specific number of ounces of gold， which in turn determined their values in international trading79.Which of the following statements is not consistent with generally accepted accounting principles relating to asset valuation？ 。A.Assets are originally recorded in accounting records at their cost to the business entityB.Accountants prefer to base the valuation of assets upon objective， verifiable evidence rather than upon appraisals or personal opinionC.Accountants assume that assets such as office supplies， land and buildings will be used in business operations rather than sold at current market pricesD.Subtracting total liabilities from total assets indicates what the owners equity in the business is worth under current market conditions80.A fiscal expansion in the UK _ the pound sterling。A.tends to appreciateB.tends to depreciateC.does not affect the price ofD.has no predictable effect on the price of81.What are the expected returns for Stocks X and Y respectively？ _。A.20% and 10%B.18% and 12%C.20% and 11%D.18% and 5%82.Which of the following payment terms eliminates the exchange risk， assuming the exporter invoices in foreign currency？ _。 A.Confirmed irrevocable documentary creditB.Open accountC.Documentary collection D/AD.None of the above83.ABC Co.Ltd.purchased a car for $ 12 000， making a down payment of $5 000 cash and signing a $7 000 note payable due in 60 days.Which of the following is not correct？ _。A.From the viewpoint of a short-term creditor， this transaction makes the business less solventB.Total liabilities increased by $7 000C.Total assets increased by $12 000D.This transaction had no immediate effect on the owners equity in the business84.Which of the following terms of payment will entirely eliminate country risk？ _。A.Revocable documentary creditsB.Confirmed Irrevocable documentary creditsC.Documentary collection D/PD.Documentary collection D/A85.The expiry date of a documentary credit is Sunday， 24 February， and documents have to be A presented to you.Which of the following is an acceptable presentation？ （Assume there is no latest stated date for shipment stipulated.） _。A.Presentation to you on Monday 25 February with the bill of lading dated 25 FebruaryB.Presentation on Monday 25 February with the bill of lading dated Sunday 24 FebruaryC.Presentation on Tuesday 26 February with the bill of lading dated Sunday 24 FebruaryD.Presentation on Friday 22 February with the bill of lading dated Sunday 29 January86.What are the standard deviations of returns on Stocks X and Y respectively？ _。A.15% and 26%B.24% and 13%C.20% and 4%D.28% and 8%87.Who makes the first presentation of documents under a transferable credit？ _。A.ApplicantB.First beneficiaryC.Second beneficiaryD.None of the above88.A transaction caused a $10 000 decrease in both total assets and total liabilities.This transaction could have been _。A.repayment of a $ 10 000 bank loanB.an asset with a cost of $10000 was destroyed by fireC.purchase of a delivery truck for $10 000 cashD.collection of a $10 000 account receivable89.Money ceases to serve as an effective store of value when _。A.the government runs large deficitsB.the unemployment rate is very highC.productivity in the economy declinesD.rapid inflation occurs90.An indication that the money supply is greater than the desirable amount would be 。A.insufficient spending and excessive savingB.deflationC.inadequate spending and rising unemploymentD.rising wages and prices91.If a nations interest rates are relatively low compared to those of other countries， then the exchange value of its currency will tend to _ under a system of exchange rates。A.appreciate floatingB.depreciatefloatingC.appreciate fixedD.depreciate fixed92.Which of the following is true of a companys balance sheet？ _。A.It displays sources and uses of cash for the periodB.It is unnecessary if both an income statement and a statement of cash flows are availableC.It is a separate representation of the companys revenue and expense transactions for the yearD.It is an expansion of the basic accounting equation of Assets=Liabilities+Owners Equity93.When Americans or foreigners expect the return on dollar deposits to be high relative to the return on foreign deposits， there is a _ demand for dollar deposits and a correspondingly _ demand for foreign deposits。A.higher higherB.lower higherC.higher lowerD.lowerlower94.Velocity is the _。A.inverse of GNPB.speed at which checking accounts are converted into cashC.relationship between the price level and the money supplyD.rate at which money turns over95.Assume that of your $10 000 portfolio， you invest $9 000 in Stock X and $1 000 in Stoc