金融英语模拟题(五)T5P2-Reading.doc

金融英语模拟题（五）Part two ReadingSection One (10%)Directions: There are ten statements in this section. For each statement there are four choices marked A，B，C，D. You should choose the best answer. 31. The fixed exchange rates system suggested that no change in parity could take place without the Funds approval which however could not be withheld if the change did not exceed _. A. 5% B. 10% C. 15% D. 20% 32. If spot exchange rate today is 1=USD1.4 and forward exchange rate (one year) is 1=USD1.3440, then _. A. forward discount on pound is 4% B. forward premium on pound is 4% C. forward discount on pound is 4.17% D. forward premium on pound is 4.17% 33. The balance sheet is a statement of the financial position _. A. at a specified point in time B. during a particular period C. for a year D. none of all 34. _ is the foundation of private accounting, which analyzing a businesss costs to help managers control expenses. A. Budgeting B. Management information system C. Internal auditing cost accounting D. Cost accounting 35. When operations produce a positive cash flow, we say there is _ . A. a net inflow B. a net outflow C. a swap position D. a square cash position 36. The most volatile accounts in recent years have been _. A. the current accounts B. the trade accounts C. the short-term capital account D. the long-term capital accounts 37. Sales total USD400, 000, cost of good sold is USD225, 000, and operating expenses are USD10, 000, how much is gross margin? A. USD30, 000 B. USD15, 000 C. USD35, 000 D. USD5, 000 38. If China has a favorable movement in the balance of payments, then _. A. the exchange rate will appreciate B. the exchange rate will depreciate C. the RMB exchange rate will appreciate D. the foreign exchange rate will depreciate 39. _ exchange rates system has the advantage of avoiding the competitive depreciation of exchange rates. A. Floating B. Managed floating C. Fixed D. Flexible 40. _ exchange rates system has the advantage of being free to carry out an independent monetary policy, without too much attention to the balance of payments. A. Floating B. Pegged C. Fixed D. Any Section Two (10%)Directions: There are 10 blanks in the following passages. For each blanks there are four choices marked A, B, C, D. You should choose the best answer. When the exporter is well acquainted with _41_ of the buyer and entertains _42_ doubt about his solvency, or when the exporter sells goods to his own overseas branch or subsidiary, he may be prepared to ship his goods _43_ open account. Under this device, the exporter sends his documents to the buyer who remits in due course or at agreed intervals the agreed price either by T/T or by M/T through a bank. The exporter makes _44_ date for payments of the goods shipped. Instead, he is prepared to rely on his past experience of the buyers integrity to effect settlement at the proper time. As there may be a period of waiting in between the dispatch of goods and payment, it may become necessary to render financial aid to _45_ the buyer _46_ the exporter. Here banks often grant export finance in a variety of forms of which the following are the principal ones: The exporters bank may make an advance to him _47_ his shipping documents with or without a bill of exchange during the course of collection abroad. The advance would be for _48_ the value of the bill or documents both of which serve as collateral, and interest at _49_ would be charged on the amount of the advance until the proceeds are _50_. 41. A. the position B. the situation C. the status D. the financial status 42. A. no B. in C. with D. on 43. A. in B. on C. to D. for 44. A. precise B. exact C. definite D. no precise 45. A. both B. neither C. either D. whether 46. A. and B. nor C. or D. or not 47. A. against B. on C. for D. to 48. A. any percentage of B. an fixed percentage of C. an agreed percentage of D. a determinable percentage of 49. A. affixed rate B. a determinable rate C. any rate D. an agreed rate 50. A. paid B. prepaid C. collected D. received Section Three (10%)Directions: Read the following passages, and determine whether the sentences are Right or wrong. If there is not enough information to answer right or wrong. choose Doesnt say. Interest on Lawyers Trust Accounts IOLTAs, are offered to lawyers and firms to comply with the handling of funds being held in trust on behalf of clients. Interest earned on these accounts will be paid to the Texas Equal Access to Justice Foundation. 1. Accounts may be opened without a minimum deposit. 2. Interest will be calculated based on the average daily balance for the month. No minimum balance is required for this account to earn interest for the month. Interest will be credited to the account on the first of each month before being withdrawn and remitted to the Texas Equal Access to Justice Foundation. 3. A maximum of $10.00 handling/service charge per account will be deducted from the accumulation of all interest paid on this type of account. 4. All other terms, conditions and fees apply according to the Membership and Account Agreement, Truth-In-Savings Rate and Fee Schedule and Funds Availability Policy Disclosure. 51. IOLTAs must be opened with a minimum deposit. A. Right B.Wrong C.Doesnt say52. No minimum balance is required for this account to earn interest for the month. A. Right B. Wrong C. Doesnt say53. Interest on Lawyers Trust Accounts, are offered to lawyers and firms to comply with the handing of funds being held in trust on behalf of clients. A. Right B. Wrong C. Doesnt say54. IOLTAs main clients are accounters. A. Right B. Wrong C. Doesnt say passage 2 The exchange rate of a particular foreign currency changes as the supply and demand conditions in that country or its trading partners change. Such shifts may occur because of changes in tastes, technological improvements, weather, political upheavals, war, and so on. A poor harvest in one country will increase its demand for agricultural products from other countries and, unless offset by a reduction in import demand in some other product or an increase in its exports, will cause its exchange rate to decline in terms of the currencies of crop-exporting countries. Likewise, a technological improvement reducing the domestic cost of production of a good may increase the quantity of that goods demanded by foreign as well as domestic markets. Unless export of some other product decline or imports climb by the same amount, the domestic exchange rate will increase in terms of foreign currencies. 55. Exchange rate changes according to supply and demand. A. Right B. Wrong C. Doesnt say56. When we spend more than we earn, then the exchange rate of local currency will appreciate. A. Right B. Wrong C. Doesnt say57. One country needs foreign currencies because it has to pay bills for imports or makes financial investments in foreign countries. A. Right B. Wrong C. Doesnt say passage 3 The primary justification for banking supervision is to limit the risk of loss to depositors, and by so doing to maintain public confidence in banks. And while supervision naturally focuses on the individual bank, supervisors must also be alert to the possibility that problems in one institution may have wider, systemic repercussions on others, or on the integrity of the payments system. 58. Supervisors have the obligation to save a failing bank. A. Right B. Wrong C. Doesnt say59. Supervisors usually pay more attention to the individual bank. A. Right B. Wrong C. Doesnt say60. A sound bank will not suffer from the bankruptcy of other unrelated banks. A. Right B. Wrong C. Doesnt say Section Four (20%)Directions: There are 4 passages in this sections. Each passage is followed by some questions or unfinished statements. For each of them there are four choices marked A, B, C, D. You should choose the best answer. Passage 1Factoring refers to a practice whereby you sell your receivables for a discount before they are due. Historically, factoring has been heavily used in some industries, such as the garment industry, and less in others. Today, however, entrepreneurial factoring companies are willing to buy creditworthy receivables from just about any industry. Factoring is a relatively expensive means of obtaining financing. You are paying for the cost of the capital, the extra risk including bad debt, and the paperwork factoring requires. If you can finance your business through other sources, particularly the more traditional ones, you will certainly save money.However, factoring can be a cash bonanza to a growing business, especially one that cannot obtain the necessary capital through traditional borrowing. 61. Factoring is a relatively _ means of obtaining financing. A. cheap B. expensive C. free D. hard 62. Factoring can be a cash bonanza to a growing business, especially one that A. cannot obtain the necessary capital through loan B. cannot obtain the necessary capital C. cannot obtain the necessary capital from financial institutes D. cannot obtain any fund. 63. Factoring refers to a practice whereby you sell your _ for a discount before they are due. A. capital B. goods C. stocks D. receivables 64. Factoring is a kind of _. A. means of payment B. payment system C. international settlement D. loan 65. Factoring was once used heavily in _. A. industry B. bank C. garment industry D. company Passage 2Bank CD is the instrument uniformly figuring in the investment options of most investors. Bank of India CDs are safe, FDIC insured & offer decent returns. There is no brokerage, no fees or hidden costs. However, the Bank may impose a fee for administrative expenses involved in any legal action in connection with the CD. Look at our Star CD plan below. High Interest: Higher on Large amount Our rates on certificate of deposits are among the best in the industry. The rate may vary on day-to-day basis. For CDs of above $250,000.00, The interest is simple i.e. not compounded; therefore, annual percentage yield is same as annual interest rate. The interest is payable on the day of maturity of deposit. Interest paid during the year is reported to Internal Revenue Services. For todays rates please refer to Current Rates of Interest on STAR CDs. Maturity Period: Flexible to your needs You may choose any maturity date with a minimum period of 7 days to a maximum period of 1 year to suit your needs. Your CD is automatically renewed for the same period in absence of any other instruction, at the ruling rate of interest on the date of renewal. There is no grace period for automatic renewal of deposits on maturity. For deposits issued for 1 year or more, we send maturity notices to the depositors 2 to 4 weeks before the due date. Minimum Amount: Easy to Start The minimum amount accepted is USD 2000 Other Features 1. FDIC Insurance Up to $100,000 2. Facility to Open Joint & Corporate Accounts Additional Deposits Additional amounts deposited into an account will be treated as fresh deposits & separate certificates of deposits will be issued for such deposits. Early Withdrawal: Withdrawal of deposit before its date of maturity may be allowed at banks discretion. In that event, interest will be paid at the rate applicable for the period for which the deposit remained with the bank or the contracted rate, whichever is lower, as prevailing on the date of deposit, less one percent. However, no interest shall be paid on the deposit which runs for less than 30 days. There is no other penalty or charge on early withdrawal. 66. Why are Bank of India CDs safe ? Because _. A. Bank of India is safe B. CD is a safe instrument C. CD is insured. D. Others 67. The CDs annual percentage yield is _ annual interest rate. A. the same as B. more than C. less than D. incomparable 68. Can CD be renewed for the same period without any other instruction ? A. CD is automatically renewed for the same period in absence of any other instruction. B. CD isnt automatically renewed for the same period unless having other instruction. C. No, it cant. D. CD is automatically renewed for the same period with permission by the manager of bank. 69. Withdrawal of deposit more than 30 days, but before its date of maturity may be, penalty or charge on early withdrawal. A. allowed , with B. allowed , no C. banned , with D. banned, no 70. Star CD has at least _ advantages. A. 1 B. 2 C. 3 D. 4 Passage 3 Qualified Endorsement: When the words without recourse or words with similar meaning are used as part of the endorsement, such endorsement is referred to as qualified endorsement. The purpose of this type of endorsement is to limit the endorsers liability. The qualified endorsee, however, may look to all other parties prior to the qualified endorser. Under the UCP, the term signature also includes marks and thumbprints and printed, typed, or stamped signatures are acceptable in addition to written ones. This rule also applies to endorsements. In the United States, the endorsement on an instrument need not necessarily be applied by the previous holder. Banks frequently provide this by placing a rubber-stamped endorsement on deposited check, typically using words as Credited to account of within named payee and guaranteeing the absence of the Payees Personal signature and endorsement. 71. Qualified endorsement is one _ . A. only with without recourse on it, words with similar meaning are not considered as qualified endorsement B. where the holder merely writes his signature on the back of the instrument and there- after it becomes payable to the bearer C. with without recourse or words with similar meaning as part of endorsement D. which prohibits the further negotiation of the instrument or which expresses that it is a mere authority to deal with the instrument as thereby directed 72. Qualified endorsement is used _ . A. when the endorser wants to pass the full title to the endorsee B. to inform the importers bank to negotiate C. when the endorser wants to strengthen the liability of the endorsee D. to limit the endorsers liability 73. According to UCP, the term signature includes _ . A. marks and thumbprints, and printed, typed, or stamped signatures are acceptable in addition to written ones B. marks and thumbprints, but printed, typed, or stamped signatures are acceptable in addition to written ones C. marks and thumbprints, but printed, typed, or stamped signatures are not acceptable in addition to written ones D. marks and thumbprints only 74. The qualified endorsee may look to all other Parties _ . A. prior to the qualified endorser B. prior to the qualified endorsee C. prior to the immediate endorser D. prior to the immediate endorsee 75. Endorsement can be acceptable _ . A. only when it is signed personally by the previous holder B. if it is signed, stamped or marked C. only when there is a rubber-stamped signature on it D. if there is a thumbprints on it Passage FourA banks bookkeeping tries to prove three things - that all the days transactions have gone through for the right amounts, that they have all been posted to the right accounts, and that the fresh balances of those accounts are correct after recording the transactions. The waste lists all the days transactions. At the end of the day you prove no transactions are missing or wrong by balancing the total debits against the total credits. Next, you prove that all transactions have reached the ledger correctly by balancing the total debits and credits on various parts of the ledger against the corresponding totals in the waste. A bank proves that the right accounts have been posted by comparing the ledger entries with the vouchers. These are separately checked by having the vouchers posted into the ledger by one clerk and into the statement by another. The chances of their making the same mistake are very small, and it is easy to discover a mistake by comparing ledger against statement. Nowadays it is rare to rely on human arithmetic to work out the correct balance of an account by subtracting all the days debits and adding all the days credits. Although accounting machinery is reliable, it is still possible to get the wrong balances by putt