金融英语试题

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 credit11.Which of the following statements is not true of central banks？ _。A.They pay the governments salariesB.They always undertake the regulation of the banking systemC.They are always the lender of last resortD.None of the above12.When GBP/USD rate goes from 1.6150 to 1.8500， we say the dollar _。A.appreciates by 12.70%B.depreciates by 14.55%C.depreciates by 12.70%D.appreciates by 14.55%13.According to diversification principle in investment， suppose you invest Stock X and Stock Y with equal funds， which of the following is not true？ _。A.If X and Y are totally independent with each other， the risk of the portfolio is reducedB.If X and Y are perfectly negatively correlated， the risk of the portfolio is perfectly offsetC.If X and Y are perfectly positively correlated， the risk of the portfolio is neither reduced nor increasedD.If X and Y are perfectly negatively correlated， the risk of the portfolio is neither reduced nor increased14.These are four main methods of securing payment in international trade：（1） payment under documentary credit（2） open account（3） collection， that is document against payment or acceptance of a bill of exchange（4） payment in advanceFrom an exporters point of view， the order of preference is _。A.（4） ， （2） ， （3） ， （1）B.（4） ， （1） ， （3） ， （2）C.（4） ， （3） ， （1） ， （2）D.（2） ， （4） ， （1） ， （3）15.The main liability on a bank balance sheet is _。A.depositsB.capital and reservesC.loans and overdraftsD.cash16._ shows that net income for a specified period of time and how it was calculated。A.The income statementB.The capital statementC.The accounting statementD.The statement of financial condition17.Why must the liabilities and assets of a bank be actively managed？ _。A.Because assets and liabilities are not evenly matched on the same time scaleB.Because assets and liabilities are evenly matchedC.Because the interbank market uses LIBORD.Because assets and liabilities can be underwritten18.If the expected returns of two risky assets have a perfect negative correlation， then risk 。A.is increasedB.falls to zeroC.is unaffectedD.is reduced by one-half19.A possible disadvantage of freely fluctuating exchange rates with no official intervention is that 。A.some nations would experience continual deficitsB.the exchange rates may experience wide and frequent fluctuationsC.nations would no longer be able to undertake domestic policies designed to achieve and maintain full employmentD.nations would need a larger supply of international reserves than otherwise20.What are your GBP/USD position and the average rate if you sell 4m at 1.6350 buy 5m at 1.6340 and sell $5m at 1.6348？A.Short 2 058 478.10 long $3 370 000 at 1.6371B.Long 5 941 521.90 short $9710 000 at 1.6342C.Short 5 941 521.90 long $9 710 000 at 1.6342D.Long 4 058 478.10 short $6 630 000 at 1.633621.A correlation coefficient of +1.0 means two stocks are _。A.perfectly negatively correlatedB.opposite the market betaC.equal to the market betaD.perfectly positively correlated22.The percentage analysis of increases and decreases in corresponding items in comparative financial statements is called _。A.external analysisB.horizontal analysisC.vertical analysisD.comparative analysis23.What is the name of the document which can make a buyer feel confident that goods are of a certain standard？ _。A.Inspection certificateB.Commercial invoiceC.Insurance policyD.Certificate of origin24.Sometimes financial intermediaries by borrowing short and lending long find themselves in difficult financial situations because 。A.short-term rates are fallingB.long-term rates are risingC.deposits increase too rapidlyD.short-term rates rise relative to rates of their holdingsE.long-term rates rise more sharply than short-term rates25.Incoterms were written _。A.by the International Chamber of CommerceB.under the United Nations Convention for the International Sale of Goods （Vienna Convention ）C.under the Kyoto Protocols as adopted in 2000D.under fast track authority granted by the U.S.Congress26.The purpose of keeping account is to 。A.determine whether the business has made a profit or a lossB.find out why the business has lost moneyC.see how much has been spentD.find out why the business cannot fulfil its commitments27.If reserves are 20 percent， then the multiplier effect will be _ times， so the original deposit of RMB40 000 can create up to _ of new deposits。A.5RMBB.4RMBC.3RMB80000D.6RMB2000028.ABC Company is the beneficiary of a confirmed irrevocable letter of credit._ bank （ s ） will assure the company that it will be paid。A.OneB.NoneC.ThreeD.Two29.Legal tender includes 。A.notes and coinsB.notes onlyC.coins onlyD.notes， coins and checks30.The following are the basic functions of a bill of lading except to act as _。A.a receipt for the goods from the shipping company to the exporterB.a document of title for goods being shipped overseasC.a certificate of origin， which certifies that the goods were produced in a particular countryD.evidence of the carriage contract between the exporter and the carrier31.Persistent foreign trade deficits under a flexible exchange rate system usually lead to _。A.inflation in the domestic economyB.speculation of future devaluationC.falling interest ratesD.rising imports32.The additional amount paid in buying or selling a currency at a given future date is called 。A.premiumB.commissionC.tariffD.dividend33.Banks manage their assets considering _。A.riskB.some optimum combination of the aboveC.earningsD.liquidity34.What is the function of the book-keeping system in bank accounting？ _。A.To prove that all the days transactions have gone through for the right amountB.To prove that all the days transactions have all been posted to the right accountC.To prove that the fresh balance of those accounts is correct after recording the transactionsD.All of the above35.The risk that is specific to individual stocks is called _。A.systematic riskB.country riskC.unsystematic riskD.market risk36.The main objective of the Exchange Equalization Account is to _。A.prevent undue fluctuation in the exchange value of one countrys own currency against other currenciesB.control the rate of inflationC.ensure that notes and coins continue to be acceptable as a medium of exchangeD.permit the exchange of payments between banks37.How can you prove that no transactions are missing or wrong at the end of the day？ _。A.There is no other way than have these transactions reposted to the proper entriesB.We can examine all the transactions carefully and find the wrong recordsC.We can balance the total debits and the total credits by calculating them againD.We can do that by checking the total debits and the total credits to see whether they are in state of balance38.Money _。A.serves as the critical function of a medium of exchangeB.facilitates trade in goods and servicesC.overcomes the inefficiencies of barterD.all of the above39.If dealers buy currency forward but do not sell forward at the same time， their position is known as 。A.shortB.forerunnerC.speculation40. 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 bankruptD. 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 accounts51. What is Dollar Cost Averaging? _.A. A brokerage account that gives investors cheap tradesB. The idea that prices tend to rise over the long termC. Buying stocks that are below average in valueD. A flat quarterly mutual fund fee averaged throughout the yearE. A strategy of investing money on a regular basis to take advantage of market fluctuations52. From a Chinese banks point of view, the currency account which it maintains abroad is known as_, while a RMB account operated in China for a foreign bank is termed _.A. a vostro account a nostro accountB. a vostro accounta mirror accountC. a mirror accounta nostro accountD. a nostro account a vostro account53. Under FOB terms the bill of lading would state goods _.A. loaded on board, freight payable at destinationB. loaded on board, freight paidC. received for shipment, freight paidD. received for shipment, freight payable at destination54. The liabilities of the bank as shown in its balance sheet represent the _ which it uses in its business.A. sources of the fundsB. share capitalC. investmentsD. advances to customers55. International payments and other messages are often sent through an international computer network called _.A. CHAPSB. BACSC. SWIFTD. EIMT56. Low levels of uncertainty (risk) are associated with .A. stocksB. stock optionsC. higher potential returnsD. lower potential returns57. Government securities would appear on a commercial banks balance sheet as _.A. an assetB. reservesC. part of net worthD. a liability58. A major problem with a fixed exchange rate system is that when countries run foreign trade deficits, _.A. there is no self-correcting mechanismB. currency values become unstableC. the value of the reserve currency declinesD. world inflation increases59. In a particular economy banks are required to keep 25 percent of all deposits in the form of reserves; this gives a credit-creation multiplier of _.A. fourB. threeC. twoD. five60. Regulation of the money supply and financial markets is referred to as _.A. fiscal policyB. income policyC. monetary policyD. budgetary policy61. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .A. imports automatically increaseB. currency automatically depreciatesC. exports automatically declineD. currency automatically appreciates62. Which of the following statements is not true of accounting? _.A. Accounting is language of businessB. The user of accounting includes business, government, nonprofit organizations and individuals.C. Accounting is useful for decision makingD. Accounting is an end rather than a means to an end63. The term foreign exchange is best defined by the following statement: it is _.A. the rate of exchange between two currenciesB. synonymous with currency exchangeC. the place in which foreign currencies are exchangedD. an instrument such as paper currency, note, and check used to make payments between countries64. What is Asset Allocation? _.A. Buying assets of different types, risks, and potential returnsB. Buying assets with more than one brokerage accountC. The ability to buy mutual fundsD. Buying stocks for the long term65. External users of financial accounting information include all of the following except .A. suppliersB. line managersC. general publicD. creditors66. CAPM is short for .A. Capital Asset Pricing ModelB. Cash Added Price MatrixC. Capital Asset Pricing MatrixD. Cost and Price Model67. Liquidity measures the _.A. value of an assetB. ease with which an asset can be exchangedC. usefulness of an assetD. economic and monetary reliability of an asset compared with other assets68. In a letter of credit transaction, the bank pays the seller against _ which agree(s) with_.A. documents the creditB. merchandise the contractC. documents the contractD. merchandisethe buyer ordered69. 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 d