金融英语考试模拟练习题二

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?。

金融英语复习材料期末考试题型及分值分布：1：单项选择 20*1’=20’2：阅读理解两篇 10*2’=20’3：汉译英 5*3’=15’4：英译汉 6*5’=30’5：专业问答 15’Ⅰ Multiple choice.1. What function is money serving when you buy a ticket to a movie?A. store of valueB. a unit of accountC. transaction demandD. a medium of exchange2. Which of the following statements is not true of central banks?A. they pay the government’s salariesB. they are always the lender of last resortC. they always undertake the regulation of the banking systemD. none of the above3. What is the reserve requirement?A. The requirement for cash reservesB. The requirement for deposits in cashC. T he percentage of a bank’s deposits in the form of cash reservesD. The requirement of a bank to deposit a percentage of money4. Regulation of the money supply and financial markets is referred to asA. fiscal policyB. monetary policyC. income policyD. budgetary policy5. Financial markets serve to channel funds from .A. savers to investorsB. investors to consumersC. consumers to producersD. the government to contractors6. If the central bank wishes to increase the level of bank reserves temporarily, it should .A. purchase government securities outrightB. raise reserve requirementC. buy government securities under a repurchase agreementD. sell government securities under a reserve repurchase agreement7. A commercial bank wishing to increase its capital shouldA. issue new stockB. acquire new depositC. make more commercial loansD. acquire government securities8. The following are the three main instruments used by the central bank to implement its monetary policy exceptA. reserve requirement ratioB. credit quotaC. open market operationD. discount rate9. are the major target which the central bank buys and sells in the open market.A. financial institution bondsB. corporate bondsC. stocksD. government securities10. Financial intermediaries are institutionsA. that borrow funds from investors in productive facilitiesB. that act as middlemen in transferring funds from ultimate lenders to ultimate borrowersC. that lend funds to small saversD. all of the above11. Financial markets can be classified asA. debt and equity marketsB. primary and secondary marketC. money and capital marketsD. all of the above12. Commercial banks participate in the money market asA. lenders onlyB. borrowers onlyC. both lender and borrowersD. trustees only13. The major expense of commercial bank isA. wages and salariesB. dividend payments to stockholdersC. interest on depositsD. taxes14. Stocks are also referred to asA. securitiesB. equitiesC. sharesD. all of above15. Which of the following is not a type of bond?A. corporateB. treasuryC. EurodollarD. municipal16. Which of the following is a debt instrument found in the capital market?A.U.S. treasury billB. commercial paperC. residential mortgageD. demand deposit17. The foreign exchange market is organized asA. a physical marketB. a capital marketC. a speculative marketD. over-the-counter market18. Exchange control require the governmentA. to ensure that the foreign-exchange market is perfectly competitiveB. to stop buying foreign exchangeC. to sell more foreign exchange than it buysD. to balance inflows and outflows of foreign exchange at the current exchange rate19. The forward rate is calculated by adjusting the spot rate by aA. premiumB. discountC. marginD. difference20. When the U.S. real interest rate is low, owning U.S. assets is and so U.S. net foreign investment isA. more attractive…highB. more attractive…lowC. less attractive…highD. less attractive…low21.The main liability on a bank balance sheet is ______.A. depositsB. capital and reservesC. loans and overdraftsD. cash22. 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 underwritten23. Financial intermediaries by "borrowing short and lending long" find themselves in difficult financial situations becauseA. 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 rates24. Banks manage their assets considering ______.A. riskB. some optimum combination of the aboveC. earningsD. liquidity25. Indirect finance is also known as .A. financial intermediationB. intangible financeC. disintermediationD. the futures market26. Which of the following financial institutions have the most assets?A. life insurance companyB. private pension fundsC. commercial banksD. credit unions27. By purchasing government securities commercial banks are .A. borrowing from the governmentB. acquiring earning assetsC. making a “loan” to the governmentD. both B and C28. Which of the following financial intermediaries operate in primary securities markets?A. brokersB. dealersC. commercial banksD. investment banks29.Which of the following would be considered a disadvantage of allocating resources using a market system?A. Income will tend to be unevenly distributed.B. Significant unemployment may occur.C. The wastage of scarce economic resources cannot be prevented.D. A misallocation of resources may occur where there is a discrepancy between private and social costs.30. Which of the following is not a factor of production according to economists?A. LandB. LaborC. EntrepreneurshipD. Trademark31. 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 act as a means of paymentE. To provide a double coincidence of want.32. Legal tender includes .A. coins onlyB. notes onlyC. notes and coinsD. notes, coins and checks33. Commercial bank deposits with the central bank are part of the bank’sA. net worthB. demand depositsC. loan portfolioD. reserves34. The key factor limiting how much a commercial bank has immediately available to lend is the amount of itsA. demand depositsB. excess reservesC. vault cashD. savings deposits35. Which of the following central bank action would be appropriate to combat rapid inflation?A. A reduction in the discount rateB. A reduction in reserve requirementC. A cut in taxD. A sale of government securities36. A commercial bank wishing to increase its capital shouldA. issue new stockB. acquire new depositsC. make more commercial loansD. acquire government securities37. The price in the foreign market is calledA. the trade surplusB. the money priceC. the exchange rateD. the currency rate37. Monetary policy and policy are the two basic tools used by the government to influence the course of economic activity.A. accountingB. fiscalC. financialD.trade38. if the nominal rate of interest is 10 percent and the expected rate of inflation is 7 percent, the real rate of interest is .A.27 percentB. minus 3 percentC. plus 3 percentD. minus 27 plus39. A money market instrument usually used for import/export payment is known as .A. repurchase agreementB. EurodollarC. Certificate of depositD. Banker’s acceptance40. Bonds that can be changed to shares of common stock are said to be .A. callableB. general obligationC. convertibleD. zero-coupon41. Preferred stockholders receive .A. coupon paymentsB. fixed dividend paymentsC. variable dividend paymentsD. payment in the form of additional stock42. Bank manage their assets considering .A. riskB. liquidityC. earningsD. some optimum combination of the above43. Which of the following would be considered a loan secured by real estate?A. A credit card loanB. Subordinated debtC. Bank capitalD. A mortgage44. will be either the sole or the main source of a project loan repayment.A. capital fundsB. investment gainsC. the cash flow arising from the projectsD. all of the above45. In a syndicated loan, handles the negotiations with the borrower, prepares the relevant documentation and disburses the full amount of the loan to the borrower.A. the lead bankB. the accounting bankC. the participating bankD. the agent bank46. Repayment of a borrowing for working capital purposes usually comes from .A. profitsB. sale of fixed assetsC. cash flowD. capital introduced47. A loan agreement is normally prepared by and reviewed by .A. the lending bank’s legal counsel…the borrower’s attorneyB. the borrower’s attorney …the lending bank’s legal counselC. a third party other than the lending bank and the borrower… the lending bank’s legal counselD. none of the above48. For the most bank, are the largest and most obvious source of credit risk.A. guaranteesB. interbank transactionsC. loansD. equities49. A customer has deposited a gold watch with the bank for safe-keeping. This is an example ofA. lienB. pledgeC. bailmentD. mortgage50. A pledge provides a bank with .A. possession of the goodsB. rights over items held in safe custodyC. legal ownership of the goodsD. the ability to transfer interests in certain assets51. Which of the following is true of a mortgage?A. the mortgage retains possession of the mortgaged propertyB. the mortgagor retains possession of the mortgaged propertyC. the lender acquires the right to retain the mortgaged property until the mortgaged debt is repaidD. none of the above汉译英练习题：1.我们银行经办定期存款、活期存款和定活两便存款。

金融考研英语二真题答案一、阅读理解Passage 11. C2. B3. APassage 24. D5. A6. CPassage 37. A 8. D 9. B二、完形填空10. C 11. D 12. B 13. B 14. C15. A 16. D 17. B 18. C 19. A20. D 21. C 22. A 23. B 24. D25. A 26. B 27. C 28. D 29. C30. B三、综合阅读填空31. F 32. G 33. D 34. E 35. C36. A 37. H 38. B 39. C 40. F41. G 42. H 43. E 44. D 45. A四、翻译46. 参加这个考试的人数远远超过了预期。

47. 因为她的资历和经验，她被任命为部门经理。

48. 金融市场的波动可能会导致投资者的损失。

49. 这个项目在规定的时间内完成了，这是我们的重要成绩之一。

50. 自从经济危机以来，许多公司都采取了削减开支的措施。

五、作文题目：中国金融市场的发展与挑战随着中国经济的迅速崛起，中国金融市场也经历了快速发展。

然而，在这一过程中，金融市场也面临着一些挑战。

本文将探讨中国金融市场的发展现状以及所面临的主要挑战。

首先，中国金融市场的发展取得了显著的成就。

中国已成为全球第二大经济体，具有庞大的消费市场和潜力巨大的投资机会。

在金融领域，中国的股票市场、债券市场和期货市场迅速增长，并与国际市场融合。

同时，中国还积极推动金融创新，包括在线支付、数字货币等，为经济发展提供了新的动力。

然而，中国金融市场也面临着一些挑战。

首先，金融风险是发展中国金融市场的主要威胁之一。

目前，中国金融市场对外开放程度的提高使得外部冲击因素增加，金融市场波动性加大。

其次，市场监管和风险防范体系仍然不完善，监管能力、监管水平等需要进一步提升。

此外，金融市场的不均衡发展也是一个问题，一些地区和行业相对较弱，与一线城市相比，发展水平还有差距。

Test2Part 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. C.She went to the bank.B. She liked Mr. smith. 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 answerC. Now listen to the statements.1. A. Financial markets must support sound financial institutions.B. Sound financial institutions are made by financial markets.C. Financial markets should be backed by strong financial institutions.D. Financial markets are sound because of financial institutions.2. A. US dollar is going higher vs. Japanese Yen.B. US dollar is going higher vs. Pound Sterling.C. US dollar is going lower vs. Japanese Yen.D. US dollar is going lower vs. Deutsche Mark.3. A. Please remit us the bill amount through Barclay's bank on due date.B. Please claim the bill amount on Barclay's Bank on due date.C. Please pay the bill amount to Barclay's Bank.D. Please inform Barclay's Bank to reimburse us on due date.4. A. The People's Bank of China may not provide loans for organizations or individuals.B. The People's Bank of China may not give financial support to enterprises.C. The People's Bank of China may act as a financial guarantor for organizations or individuals.D. The People's Bank of China may not effect a financial guarantee for individuals or organizations..5. A. Policy is the only factor that affects stock prices.B. Policy is one factor that affects stock prices.C. Monetary policy is one of the factors that affect stock prices.D. Monetary policy is the only factor that affects stock prices..6. A. I wish to cash some cheques.B. I wish to cash some traveler's cheques.C. I wish to pay cash for my expenses here.D. I wish to pay for my traveller's cheques here7.A. The L/C will be confirmed by our bank.B. Our bank's agent will confirm the L/C.C. The credit will be opened by our bank's agent.D. Our branch in San Francisco will confirm the L/C.8.A. U.S. dollar is dearer.B. U.S. dollar is higher.C. Japanese yen is weaker.D. Japanese yen is stronger.9. A. The draft is a sight one.B. The draft is payable by Citibank.C. The bill is drawn on Citi Branch.D. The bill is not negotiable.10. A. We paid you early as required.B. Your documents came to us as required.C. Your documents have been correctly presented as required.D. You did not present the documents as required.S ection 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. Theconversations 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. To apply for rolling over the loan for another period.B. To default on repayment.C. To repay it immediately.D. To apply for a new loan.2. A. 827.28 B. 829.19 C. 826.71 D. Not mentioned.13. A. He sold a house.B. He borrows some money from the man.C. He borrowed some money from the bank.D. He visited a new house.4. A. She pays a visit to the bank.B. She deals with a transaction with her customer.C. She wants to check Parks' cash and transactions of the day.D. She pays a visit to the Auditing Department.5.A. About remitting money. B. About getting a bill of exchange.C. About discounting a bill of exchange.D. About quotation of buying rate.16. A. she definitely accepted the request.B. She will not do what the man requested.C. She will use her car.D. She definitely refused the request.17. A. How to get a ticket to Paris. B. How to go to Paris.C. How to transfer money to Paris.D. How to fill the form.18. A. To open a current account. B. To open a savings account.C. To cash her cheques.D. To draw money from her savings account.19.A. 5% B. 3% C. 8% D. 6% 20. A. The interest rate will belowered B. The interest rate will be stable.C. The interest rate will increase.D. The interest rate will befloating.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 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 answer Questions 21--23 are based on passage 121. A. 4:00 p.m. B. 5:30 p.m. C. 6:00 p.m. D. 6:30 p.m.22. A. He goes to concerts. B. He visits his friends.C. He meets his customers.D. He works at home.3. A. The bank's staff. B. The bank's location.C. The bank's long hours of services.D. The bank's balance sheet. Questions 24-26 are based on passage 224. A. Short term loans without guarantees by banks.B. Long term loans without guarantees by their respective governments.C. Long term loans under guarantees by their respective governments.D. Medium term loans under guarantees by their respective banks.25. A. International banks. B. industrial nations.C. Syndicates of international banks.D. Developed countries.26. A. Yes, they are. B. No, they are not.C. Yes, they are. They represent unusual risk to banks.D. No, they are not. They represent usual risk to banks.Questions 27-30 are based on Passage 327.A. 146 B. 159 C. 194 D. 16828. A. US$ 32.1 billion B. US$ 37.4billion.C. US$ 27.3 billion.D. US$ 4.8 billion.29. A. Allowing more foreign banks to do RMB business in Pudong.B. Extending the experimentation to Shenzhen.C. Increasing the limit on the RMB position of the foreign banks on acase-by-case basis.D. All of the above.30.A. To introduce new products and expertise.B. To improve efficiency in financial intermediation.C. To introduce more foreign capital into China.D. Both A and BPart two Reading Section 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. Which activities are not the investment banking activities?A. underwriting new issuesB. financial advisingC. dealing and brokingD. savings'taking32. ___________is the purchase of one company by another using mainly borrowed funds.A. A horizontal mergerB. A leveraged buyoutC. A vertical mergerD. A MBO33. The bill of lading is evidence of ownership. It thus functions as a ________.A. receipt for goodsB. contract for deliveryC. title documentD. negotiable instrument34. Liquidity ______________.A. is a measure of how quickly an item may be converted to foreign currenciesB. is a measure of how quickly an item may be converted to cashC. is a measure of how quickly an item may be converted to liabilitiesD. is a measure of how quickly an item may be converted to fixed capital 35.35.Among various worries concerning the internet banking, the first and foremost is the problem of __________.A. profitB. interestC. clientD. security36. According to the rules of debit and credit for balance sheet accounts ______________.A. decreases in asset, liabilities, and owner's equity accounts are recorded by debitsB. increases in liabilities and owner's equity accounts are recorded by creditsC. decreases in liabilities and asset are recorded by creditsD. increases in asset and owner's equity are recorded by debits37. _________ consist of a simultaneous sale or purchase of currency.A. Spot transactionsB. Forward transactionsC. Option forward transactionsD. Swap transaction38. Cash inflows from financing activities for a bank exclude: ________.A. receiving depositsB. issuance of equity securities (capital stock)C. issuance of debt securities ( bond, notes, mortgages)D. redemption of debt39. When a bank holds some valuables on behalf of its customer, the relationship between the bank and customer is ___________.A. debtor-----creditorB. bailor--------baileeC. principal-----agentD. trustor-------trustee40. The red clause documentary credit is often used as a method of ______.A. providing the seller with funds prior to shipmentB. providing the buyer with funds prior to shipmentC. providing the seller with funds after shipmentD. providing the buyer with funds after shipmentSection 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.Passage OneCommercial banks ___41______many functions, some central to their main role in the economy and others more peripheral. Although lending and deposit _____42______have been the epicenter of commercial banking, the last few years have witnessed a _______43_______in both the types and the volume of banking services. This surge has ____44____in part by government_____45_____,but most importantly by competitive pressures.41. A. do B. entailC. perform D. work42.A. allocating B. taking C. saving D. mobilizing43.A. increase B. improvement C. decrease D. surge44.A. been induced B. caused C. attributed D. been45.A. relaxation B. Control C. Regulation D. deregulationpassage TwoThere are generally several types of credits. A(n) "___46____" guarantees payment to the beneficiary, provided that the credit terms and conditions are met and the standing of the advising bank in the beneficiary's country is sound. A(n) " ____47______" may be cancelled at any time up to the moment the advising bank pays. This type of credit is ___48_____ favorable to the exporter. There is a risk that goods may be shipped and the credit revoked before documents are presented to the advising bank. A(n) "____49______" may not be cancelled or even amended without the consent of all the parties involved. This type of credit guarantees that no single party will revoke the contract already signed. A(n) "____50_____", like a commercial credit, is a promise by the issuer to honor the beneficiary's presentation of the credit.46.A. stand-by credit B. revocable credit C. irrevocable creditD. confirmed credit47.A. confirmed credit B. revocable credit C. irrevocable creditD. stand-by credit48.A. the most B. the least C. far D. much49. A. confirmed credit B. revocable credit C. irrevocable creditD. stand-by credit50.A. stand-by credit B. revocable credit C. irrevocable creditD. confirmed credits ection 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 "Doesn't say".Passage OneInternet banking has many advantages for banks. It is much cheaper to service a customer who makes contact only by phone, interactive TV, computer or other terminals, doing without the expensive branch network. Nevertheless, with Internet banking, customers do much of the basic data inputting themselves, further saving staff time of banks. Banks can invest the saved resources of human power and capital on utilizing the information of its customers when they are transacting, i. e. to route, analyze, and integrate data into meaningful patterns. Processed customer information is and will remain to be an invaluable asset of banks. And there is an element of self selection by higher earning customers - the Internet banking customers tend to be those who are relatively wealthy and generate the banks' profits. These advantages therefore suggest that the Internet is regarded as an increasingly important commercial tool by a growing number of banks.51. Internet banking services customers by phone, interactive TV, computer or other terminals.A. RightB.WrongC.Doesn't say52. Internet banking can save human power and capital.A.RightB.WrongC.Doesn't say53. Internet banking has many disadvantages for banks such as the risks and uncertainty of outcome.A.Righ tB.Wrong C .Doesn't sayPassage TwoRevocable credit is the one which can be amended or cancelled at any time, but the issuing bank is bound to pay drawing under the credit negotiated by the advising bank or the transmitting bank prior to the receipt by it of the notice of revocation or of amendment. An irrevocable credit, however, carries the irrevocable undertaking of the issuing bank to pay all drawings made in terms of the credit. Such a credit can only be amended or cancelled with the consent of all parties to it, that is the applicant, the issuing bank, the intermediary bank, if any, and the beneficiary.Where the confirmation of an intermediary bank is added to an irrevocable letter of credit, the credit is a confirmed credit, or more exactly, a confirmed irrevocable credit, and such a confirmation constitutes a definite undertaking ofthe confirming bank in addition to the undertaking of the issuing bank.54. A revocable credit can be amended in any circumstances.A. RightB. WrongC. Doesn't say55. An irrevocable confirmed credit gives the beneficiary a double assurance of payment.A. RightB. WrongC. Doesn't say56. An irrevocable credit cannot be cancelled.A. RightB. WrongC. Doesn't say57. Where the confirmation of intermediary bank is added to a revocable letter of credit, the credit is a confirmed revocable credit.A. RightB. WrongC. Doesn't sayPassage ThreeThe source of foreign exchange for overseas investment by domestic entities are subject to review by the SAFE before the application for such investment is filed with the relevant government agencies.Profits or other foreign exchange income of Chinese investors from their overseas investment must be remitted home within eight months after the close of each local accounting year and surrendered or kept in foreign exchange accounts in accordance with the regulations. Unless otherwise approved by the SAFE, Chinese investors may not divert foreign exchange receipts to any other purposes or keep them abroad. Whenever an enterprise winds up its overseas business, the investor shall repatriate all of the assets.58. SAFE is the abbreviation of the Stated Administration of Foreign Exchange.A. RightB. WrongC. Doesn't say59. When a corporation ends its overseas business, the investor shall repatriate all of the assets.A. RightB. WrongC. Doesn't say60. Chinese investors cannot divert foreign exchange receipts to any other purposes or keep them abroad.A.RightB.WrongC.Doesn't says ection 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 OneA revolving documentary credit is one by which, under the terms and conditions thereof, the amount is renewed or reinstated without specific amendments to the documentary credit being required. The revolving documentary credit may be revocable or irrevocable, and may revolve in relation to time or value.In the case of a documentary credit that revolves in relation to time, e. g. which is initially available for up to USD15, 000. 00 per month during a fixedperiod of time, say, six months, the documentary credit is automatically available for USD15, 000. 00 each month irrespective of whether any sum was drawn during the previous month. A documentary credit of this nature can be cumulative or non-cumulative. If it is stated to be 'cumulative,'any sum not utilised during the first period carries over and may be utilised during a subsequent period. If it is 'non- cumulative,' any sum not utilised in a period ceases to be available, that is, it is not carried over to a subsequent period. It must be remembered that under this kind of documentary credit and following this example, the obligations of the issuing bank would be for USD90,000.00, i.e. six revolving periods each for USD15, 000. 00. Thus while the face value of the documentary credit is given as USD15, 000. 00 the total undertaking of the issuing bank is for the full value that might be drawn.In the case of a documentary credit that revolves in relation to value, the amount is reinstated utilisation within a given overall period of validity. The documentary credit may provide for automatic reinstatement immediately upon presentation of the specified documents, or it may provide for reinstatement only after receipt by the issuing bank of those documents or another stated condition.This kind of documentary credit involves the buyer and the banks in an incalculable liability. For that reason, it is not in common use. To maintain a degree of control, it would be necessary to specify the overall amount that may be drawn under the documentary credit. Such amount would have to be decided by the buyer and the seller to meet their requirements, and would have to be agreed to by the issuing bank.61. What's the correct definition of revolving documentary credit?A. A revolving documentary credit is one by which, under the terms and conditions thereof, the amount is reinstated without specific amendments to whichever kinds of credit the customer required.B. A revolving documentary credit is one by which, under the terms and conditions thereof, the tenor is extended without specific amendmentsto the documentary credit being required.C. A revolving documentary credit is one by which, under the terms and conditions thereof, the amount is renewed with specific amendments tothe documentary credit being required.D. A revolving documentary credit is one by which, under the terms and conditions thereof, the amount is reinstated without specific amendments to the documentary credit being required.62. "Ceases to" in Line 11 probably means __________________.A. "continue"B. "suspend to"C. "stop"D. "carry over"63. Which of the following statements is true?A. The revolving documentary credit may revolve according to the amount and time.B. A revolving documentary credit must be irrevocable.C. A revolving documentary credit must be revocable.D. The amount of a revolving documentary credit cannot be cumulated.64. When is the amount reinstated in the case of a documentary credit thatrevolves in relation to value?A. Just on presentation of specified documents.B. Only after the issuing bank receives those documents.C. Under the stated condition.D. All of above.65. The documentary credit that revolves in relation to value isn't commonlyused because ________.A. the overall amount that may be drawn under the documentary credit has been specifiedB. such credit involves the buyer and the bank in an incalculable liabilitiesC. it makes the issuing bank entail an incalculable liabilities.D. the documentary credit may provide for reinstatement immediately and automatically.Passage TwoPacking loan is a pre-shipment financing facility. The exporter can obtain packing loan from a bank when it receives the letter of credit issued in its favour. The money required is to finance the business between the commencement of the manufacturing process and the despatch of goods. This period is identical for the exporter. Usually, the finance available will not exceed 90% of the L/C amount. After shipment, the exporter can present the documents to a bank for negotiation, and repay the packing loan.For the security, the lending bank must keep in touch with the exporter, and urge them to dispatch the goods and present document in time. If the exporter fails to present documents after the expiry of the L/C, the bank will ask them to repay according to the terms of the loan agreement.66. The exporter can get packing loan from a bank when____________.A. the importer issues a L/C.B. the exporter presents the documents to the bankC. it receives the letter of credit issued in the exporter's favourD. it receives the letter of credit issued in the bank's favour67. "Commencement" in Line 3 probably means _______________.A. endingB. beginningC. implementationD. finish68. When does the exporter repay the packing loan?A. After shipment.B. Just after finishing the manufacturing process.C. Upon presentation of the documents to a bank for negotiation.D. Both A and C69. Which of the following statements is not true?A. Packing loan is a pre-shipment financing facility.B. The amount of packing loan will not exceed 90% of the L/C amount.C. Packing loan is just granted to the exporter.D. If the exporter fails to present documents after the expiry of the L/C, the bank will ask them to repay according to the terms of the L/C agreement. assage Three An option contract is a risk management or control tool designed to mitigate the effects of possible adverse movements in the price of a security or commodity. Depending upon the right acquired by the taker, options are divided into "calls" and "puts". A call option gives the taker (just the buyer of the option) the right (but not the obligation) to buy at a fixed price, while a put option confers upon him the right (but not the obligation) to sell at a fixed price. The fixed price at which the taker may buy or sell the underlying commodity or security, a procedure known as exercising the option, is called the striking price. If the striking price is identical to the current market price of the commodity or security (i.e. the prevailing price for delivery and payment on expiration date), the option is said to be at the money. When the striking price of a call option is lower than the current market price it is in the money. When it is higher than current market price it is out of the money. In contrast, the put option is in the money when the striking price is higher than the current market price or out of the money when the striking prices lower than the current market price.It will by now clear that there are two basic prices in an options contract, the price paid for the purchase of the actual option, which is the premium, and the fixed price at which the option may be exercised, which is the striking price. In turn, the price of the premium is itself made up of two component parts, the intrinsic value and extrinsic value (often known as the time value). Intrinsic value may be defined as the amount by which an option is in the money. The calculation of a proper time value for an option is far more complex. It is influenced by four different factors ----the duration of the option, the historical price volatility of the underlying commodity or security, current interest rates and the supply of and demand for the option.70. Depending on _________, options are divided into "calls" and "puts".A. the right acquired by the sellerB. the right acquired by the buyerC. the obligation acquired by the sellerD. the obligation acquired by the seller71. A put option_____________.A. gives the buyer the right to sell the underlying commodity at a fixed priceB. gives the seller the right to buy the underlying commodity at a fixed priceC. confers upon the seller the right to buy the underlying commodity at fixed price.D. confers upon the seller the right to sell the underlying commodity at fixed price.72. When the striking price of the put option is higher than the current market price, it is calledA. at the moneyB. in the moneyC. out of the moneyD. none of the money73. The premium in option_____________.A. is the striking price of the underlying commodityB. means the option is sold at par valueC. is just the margin that all option deals demandD. is the price of an option contract 74. Which of the following statement is not true?A. The premium consists of the intrinsic value and the extrinsic valueB. The extrinsic value is just the time value.C. The time value for an option is only influenced by the duration of the option and current interest rates.D. The intrinsic value is just the amount by which an option is in the money. assage FourOn the balance sheet, assets and liabilities are classified as either current or long-term to indicate their relative liquidity. Liquidity is a measure of how quickly an item may be converted to cash. Therefore cash is the most liquid asset. Account receivable is a relatively liquid asset because the business expects to collect the amount in cash in the near future. Supplies are less liquid than accounts receivable, and furniture and buildings are even less so. Users of financial statements are interested in liquidity because business difficulties often arise owing to a shortage of cash. Balance sheets list assets and liabilities in the order of their relative liquidity.Current Assets. Current assets are assets that are expected to be converted to cash, sold, or consumed during the next 12 months or within the business's normal operating cycle if longer than a year. The operating cycle is the time span during which (1) cash is used to acquire goods and services, and (2) these goods and services are sold to customers, who in turn pay for their purchases with cash. For most businesses, the operating cycle is a few months. A few types of business have operating cycles longer than a year. Cash Accounts Receivable, Notes receivable due within a year or less are current assets. Merchandising entities such as Sears, Penney's and K Mart have an additional current asset. Inventory. This account shows the cost of goods that are held for sale to customers.Long-term Assets. Long-term assets are all assets other than current assets. They are not held for sale, but rather they are used to operate the business. One category of long-term assets is plant assets, or fixed assets. Land, buildings, furniture and fixtures, and equipment are examples of plant assets.Financial statement users such as creditors are most interested in the due dates of an entity's liabilities. The sooner a liability must be paid, the more current it is. Liabilities that must be paid on the earliest future date create the greatest stain on cash. Therefore, the balance sheet lists liabilities in the order in which they are due. Knowing how many of a business's liabilities are current and how many are long-term helps creditors assess the likelihood of collecting from the entity. Balance sheets usually have at least two liability classifications,。

金融英语试题及答案一、选择题（每题2分，共20分）1. The term "equity" in finance refers to:A. DebtB. Ownership interest in a companyC. A type of loanD. A financial statement2. Which of the following is not a type of financial derivative?A. FuturesB. OptionsC. StocksD. Swaps3. The process of evaluating the creditworthiness of a borrower is known as:A. Credit analysisB. Market analysisC. Risk managementD. Portfolio management4. In the context of finance, what does "leverage" mean?A. The use of borrowed funds to increase the potential return of an investmentB. The ratio of a company's assets to its liabilitiesC. The process of selling securities to the publicD. The ability to buy or sell securities without owningthem5. A bond that pays no periodic interest but is issued at a discount to its face value is called:A. A zero-coupon bondB. A coupon bondC. A convertible bondD. A junk bond6. Which of the following is a measure of a company's ability to meet its short-term obligations?A. Current ratioB. Debt-to-equity ratioC. Return on equity (ROE)D. Earnings per share (EPS)7. The term structure of interest rates refers to the relationship between:A. The risk of an investment and its expected returnB. The maturity of a debt instrument and its yieldC. The size of a company and its market shareD. The economic cycle and the stock market performance8. A financial instrument that allows the holder to buy or sell an asset at a specified price within a specific time period is known as:A. A futureB. A forwardC. An optionD. A swap9. In finance, the term "carry trade" refers to:A. Borrowing money at a low interest rate to invest in a higher-yielding assetB. The practice of selling securities shortC. The strategy of buying and holding stocks for long periodsD. The process of hedging against currency fluctuations10. The primary market is where:A. Securities are first offered to the publicB. Securities are traded after they have been issuedC. Companies buy back their own sharesD. Investors can purchase commodities二、填空题（每空1分，共10分）11. The ________ is the difference between the bid price and the ask price of a security.12. A ________ is a financial institution that accepts deposits and provides loans.13. The ________ is the process of buying and selling securities on the same day.14. The ________ is the risk that the value of an asset will decrease due to market conditions.15. A ________ is a financial statement that shows a company's financial performance over a specific period.16. The ________ is the risk that a borrower will not repay a loan.17. A ________ is a type of investment fund that pools money from many investors to purchase a diversified portfolio of assets.18. The ________ is the potential for an asset's value toincrease or decrease.19. The ________ is the process of determining the value of a business or business assets.20. A ________ is a financial instrument that represents ownership in a company.三、简答题（每题5分，共30分）21. Explain the concept of "leverage" in finance.22. What is the difference between a "mutual fund" and a "hedge fund"?23. Describe the role of a "stock exchange" in the financial markets.24. What is "risk management" and why is it important in finance?四、论述题（每题20分，共40分）25. Discuss the impact of "inflation" on different types of investments.26. Analyze the importance of "corporate governance" in ensuring the long-term success of a company.答案：一、1. B2. C3. A4. A5. A6. A7. B8. C9. A10. A二、11. Spread12. Bank13. Day trading14. Market risk15. Income statement16. Credit risk17. Mutual fund18. Volatility19. Valuation20. Stock三、21. Leverage in finance refers to the use of borrowed money to finance investments, with the goal of increasing potential returns. However, it。

新编金融英语教程试题答案一、选择题1. The concept of "leverage" in finance refers to:A. The use of borrowed funds to increase potential returnsB. The process of fixing a broken financial systemC. The ability to move a company to a new locationD. The practice of buying and selling goods in different markets答案：A2. Which of the following is NOT a primary function of the Federal Reserve System in the United States?A. To regulate the nation's monetary policyB. To supervise and regulate banksC. To enforce international trade lawsD. To maintain financial stability答案：C3. A "bear market" is characterized by:A. Rising stock prices and strong investor confidenceB. Falling stock prices and weak investor confidenceC. A market with a surplus of bears (the animal)D. A market where only bear-related products are traded答案：B4. The term "forex" is short for:A. Foreign exchangesB. Forest exchangeC. Forming excellent relationshipsD. Financial expert report答案：A5. Which of the following is a type of financial derivative?A. StockB. BondC. FutureD. Report答案：C二、填空题1. The __________ (一种金融衍生工具) is a contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a predetermined price within a certain period.答案：option2. The __________ is the process by which a company raises capital by issuing new securities to the public for the first time.答案：initial public offering (IPO)3. __________ is the practice of analyzing financial data to make investment decisions.答案：fundamental analysis4. A __________ is a financial instrument that derives its value from a good or an index, such as shares of stock in a company.答案：future5. __________ is the term used to describe the risk that a party to a financial contract may default on their payment obligation.答案：credit risk三、简答题1. Explain the difference between a traditional bank and a shadow bank.答：传统银行是指持有银行牌照、受金融监管机构监管的金融机构，它们提供存款、贷款和其他金融服务。

金融英语练习题第二章The Demand for Money1. Irving Fisher took the view that the institutional features of the economy which affect velocity change _____ over time so that velocity will be fairly _____ in the short run.A) rapidly; erratic B) rapidly; stableC) slowly; stable D) slowly; erraticAnswer: C2. If the money supply is 600 and nominal income is 3,000, the velocity of money isA) 5. B) 50. C) 1/5. D) undefined.Answer: A3. According to the quantity theory of money demand,A) an increase in interest rates will cause the demand for money to fall.B) a decrease in interest rates will cause the demand for money to increase.C) interest rates have no effect on the demand for money.D) an increase in money will cause the demand for money to fall.Answer: C3. The Cambridge approach to the demand for money did not rule out theA) effects of interest rates on the demand for money.B) effects of wealth on the demand for money.C) effects of income on the demand for money.D) effects of any of the above.Answer: D4. Velocity, over the business cycle, tends toA) rise during economic contractions. B) fall during economic expansion.C) stay constant. D) fall during economic contractions. Answer: D5. Keynes's liquidity preference theory indicates that the demand for moneyA) is purely a function of income, and interest rates have no effect on the demand for money.B) is purely a function of interest rates, and income has no effect on the demand for money.C) is both a function of income and interest rates.D) is both a function of government spending and income.Answer: C6. Keynes's argued that when interest rates were high relative to some normal value, people would expect bond prices to _____ so the quantity of money demanded would _____.A) increase; increase B) increase; decreaseC) decrease; decrease D) decrease; increaseAnswer: B7. Keynes's model of the demand for money suggests that velocity is _____ related to _____.A) positively; interest rates B) negatively; interest ratesC) positively; bond values D) positively; stock pricesAnswer: A8. The Baumol-Tobin analysis suggests that a decrease in the brokerage fee for buying and selling bonds will cause the demand for money to _____ and the demand for bonds to _____.A) increase; increase B) increase; decreaseC) decrease; decrease D) decrease; increaseAnswer: D9. Friedman's assumption that money and goods are substitutes indicates thatA) changes in the money supply have only indirect effects on aggregate spending.B) changes in the money supply may have a direct effect on aggregate spending.C) interest rates have no effect on money demand, implying the velocity is constant.D) both (b) and (c) of the above are true.Answer: B10. Irving Fisher's view that velocity is fairly constant in the short run transforms the equation ofexchange into theA) Cambridge theory of income determination.B) quantity theory of money.C) Keynesian theory of income determination.D) monetary theory of income determination.Answer: B11. In the 20th century, velocityA) has been quite stable over periods as long as a decade.B) has grown at a constant rate.C) has been quite volatile.D) both (a) and (b) of the above.Answer: C12. Because interest rates have substantial fluctuations, the _____ theory of the demand for moneyindicates that velocity has substantial fluctuations as well.A) classical B) Cambridge C) liquidity preference D) Pigouvian Answer: C13. In the Baumol-Tobin analysis, the transactions demandfor money isA) negatively related to the level of income.B) negatively related to the level of interest rates.C) positively related to the expected return on other assets.D) only (a) and (b) of the above.14. In the Baumol-Tobin analysis, the transactions demand for money isA) negatively related to the level of interest rates.B) negatively related to the expected return on other assets.C) positively related to the expected return on other assets.D) only (a) and (b) of the above.Answer: D15. The Baumol-T obin analysis suggests that an increase in the brokerage fee for buying andselling bonds will cause the demand for money to ________ and the demand for bonds to ________.A) increase; increase B) increase; decreaseC) decrease; increase D) decrease; decreaseAnswer: B16. If interest rates do not affect the demand for money, then velocity is _____ likely to be _____.A) more; stable B) more; unstable C) more; procyclical D) less; stable Answer: A17. People will want to buy more when theA) price level rises, because the interest rate rises.B) price level rises, because the interest rate falls.C) price level falls, because the interest rate rises.D) price level falls, because the interest rate falls.18. A decrease in U.S. interest rates leads toA) a depreciation of the dollar that leads to greater netexports.B) a depreciation of the dollar that leads to smaller net exports.C) an appreciation of the dollar that leads to greater net exports.D) an appreciation of the dollar that leads to smaller net exports.19. Other things the same, as the price level falls, a country's exchange rateA) and interest rates rise.B) and interest rates fall.C) falls and interest rates rise.D) rises and interest rates fall.20. Which of the following will both make people spend more?A) wealth and interest rates rise.B) wealth rises and interest rates fall.C) wealth falls and interest rates rise.D) wealth falls and interest rates fall.21. An increase in the interest rate causes investment toA) rise and the exchange rate to appreciate.B) fall and the exchange rate to depreciate.C) rise and the exchange rate to depreciate.D) fall and the exchange rate to appreciate.22. When taxes decrease, consumptionA) decreases as shown by a movement to the left along a given aggregate-demand curve.B) decreases as shown by a shift of the aggregate demand curve to the left.C) increases as shown by a movement to the right along agiven aggregate-demand curve.D) increases as shown by a shift of the aggregate demand curve to the right.23. When the money supply decreasesA) interest rates fall and so aggregate demand shifts right.B) interest rates fall and so aggregate demand shifts left.C) interest rates rise and so aggregate demand shifts right.D) interest rates rise and so aggregate demand shifts left.24. Aggregate demand shifts left when the governmentA) decreases taxes.B) cuts military expenditures.C) creates a new investment tax creditD) None of the above is correct.25. The long-run aggregate supply curve would shift right if the government were toA) increase the minimum-wage.B) make unemployment benefits more generous.C) raise taxes on investment spending.D) None of the above is correct.26. The long-run aggregate supply curve shifts right ifA) the price level rises.B) the price level falls.C) the capital stock increases.D) the capital stock decreases.答案：DABBDDDBDC27. Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, thenA) employment and production rise.B) employment rises and production falls.C) employment falls and production rises.D) employment and production fall.28. Other things the same, an unexpected fall in the price level results in some firms havingA) lower than desired prices which increases their sales.B) lower than desired prices which depresses their sales.C) higher than desired prices which increases their sales.D) higher than desired prices which depresses their sales.29. If the price level rises above what was expected and nominal wages are fixed, thenA) production becomes less profitable so firms will hire fewer workers.B) production becomes less profitable so firms will hire more workers.C) production becomes more profitable so firms will hire fewer workers.D) production become more profitable so firms will hire more workers.30. Of the following theories, which is consistent with a vertical long-run aggregate supply curve?A) the sticky-wage theoryB) misperceptions theoryC) both the sticky-wage and misperceptions theories.D) neither the sticky-wage nor the misperceptions theory.31. The effects of a higher than expected price level are shown byA) shifting the short-run aggregate supply curve right.B) shifting the short-run aggregate supply curve left.C) moving to the right along a given aggregate supply curve.D) moving to the left along a given aggregate supply curve.32. An increase in the expected price level shifts theA) short-run and long-run aggregate supply curves left.B) the short-run but not the long-run aggregate supply curve left.C) the long-run but not the short-run aggregate supply curve left.D) neither the long-run nor the short-run aggregate supply curve left.33. Which of the following shifts the short-run aggregate supply curve to the right?A) a decrease in the actual price levelB) an increase in the actual price levelC) a decrease in the expected price levelD) an increase in the expected price level34. Which of the following shifts short-run aggregate supply right?A) an increase in the price levelB) an increase in the minimum wageC) a decrease in the price of oilD) more people migrate abroad than immigrate from abroad35. Other things the same, if the price level rises by 2% and people were expecting it to rise by 5%, then some firms haveA) higher than desired prices which increases their sales.B) higher than desired prices which depresses their sales.C) lower than desired prices which increases their sales.D) lower than desired prices which depresses their sales.答案：ADDDCBCCB。

金融英语考试试题及答案金融英语是金融领域中不可或缺的一部分，对于从事金融行业的人士来说，掌握金融英语的知识非常重要。

为了帮助大家更好地备考金融英语考试，本文将为大家提供一些常见的金融英语考试试题及答案。

一、选择题1. What is the meaning of IPO?a) Initial Public Offeringb) International Purchase Orderc) Investment Portfolio Optimizationd) International Partnership Organization答案：a) Initial Public Offering2. What does the term "capital market" refer to?a) The market for physical capitalb) The market for financial assets with a maturity of less than a yearc) The market for financial assets with a maturity of more than a yeard) The market for real estate properties答案：c) The market for financial assets with a maturity of more than a year3. Which of the following is an example of a derivative?a) Stockb) Bondc) Optiond) Certificate of Deposit答案：c) Option4. What is the opposite of a deficit?a) Surplusb) Debtc) Liabilityd) Equity答案：a) Surplus5. What is the term for a loan that is secured by collateral?a) Unsecured loanb) Subordinated loanc) Secured loand) Revolving loan答案：c) Secured loan二、填空题1. The study of how individuals and institutions make financial decisions and how these decisions affect the allocation of resources is known as__________.答案：finance2. When a company issues shares for the first time and offers them to the public, it is called an ____________.答案：IPO (Initial Public Offering)3. The interest rate that a commercial bank charges its most creditworthy customers is known as the _________.答案：prime rate4. A financial instrument that represents ownership in a corporation is called a ___________.答案：stock5. The basic economic problem of having seemingly unlimited human wants in a world of limited resources is known as ________.答案：scarcity三、解答题1. Explain the concept of time value of money.答案：The time value of money refers to the idea that a dollar today is worth more than a dollar in the future. This is because money can be invested and earn interest over time. Therefore, receiving a dollar today ismore desirable than receiving the same amount in the future. The time value of money is an important concept in finance and is used to calculate the present value of future cash flows.2. What are the main functions of a central bank?答案：The main functions of a central bank include:- Monetary policy: Central banks are responsible for formulating and implementing monetary policy to control the money supply and interest rates in an economy. This is done to achieve specific macroeconomic objectives, such as price stability and economic growth.- Banker to the government: Central banks act as the government's bank and provide services such as managing the government's accounts, issuing government securities, and acting as a lender of last resort.- Banker to commercial banks: Central banks also provide banking services to commercial banks, including maintaining accounts, providing short-term loans, and overseeing the stability of the banking system.- Currency issuance: Central banks are responsible for issuing and circulating the national currency.- Financial stability: Central banks play a crucial role in maintaining financial stability and monitoring risks in the banking system.总结：本文为大家提供了一些常见的金融英语考试试题及答案。

金融英语中级银行业务-2(总分：108.00，做题时间：90分钟)一、{{B}}SECTION ONE (Compulsory){{/B}}(总题数：1，分数：20.00)Now listen to a short conversation and a passage on the tape. This will be played once on the recorder. You may make notes while you are listening, but you should not answer any questions until the reading is over. {{B}}Qustion 1{{/B}}Now listen to a short conversation and a passage on the tape. This will be played once on the recorder. You may make notes while you are listening, but you should not answer any questions until the reading is over. {{B}}Qustion 1{{/B}}（分数：20.00）(1).What is the name of the officer in charge of opening Letter of Credit for customers?（分数：2.00）填空项1:__________________ （正确答案：George Tangkerson）解析：[听力原文]1-10 {{B}} Letter of Credit{{/B}} A: East Bank. Good morning. B: Hello. May I speak to the officer in charge of opening Letter of Credit for customers. A: Yes, this is George Tangkerson speaking. What can I do for you? B: This is Andrea Yang from Southeast Computer Ltd. We have an oversea supplier who wants to settle payment through L/C. Since this is the first time we have a transaction, they prefer the safest way of securing settlement, and suggest L/C. But we never handled it before. And your bank is our favorite one where we do all our banking. So I'd like to know about L/C to smooth that new deal. A: OK. Mrs. Yang, thank you for choosing our bank as your favorite bank. In fact, a documentary letter of credit, after payment in advance, represents the safest and fastest way of securing payment for exporters, as the exporters can personally retain control of the documents of title to the goods until the moment of acceptance of a bill of exchange. B: I see, that's why they want it. Could you tell me how many parties are involved in a credit? A: Strictly speaking, there are five parties. The first one is the applicant, usually the buyer. In your case, it's you. You arrange a credit in accordance with the terms of the contract you have made with the beneficiary. B: You mean with the supplier? A: Exactly, he is the second party, and the credit is issued in his favor. B: I was told that if I come to your bank and ask you to open a L/C for us, you function as the issuing bank. A: Correct. We, the issuing bank, commit ourselves in accordance with your instruction. And here comes the fourth party—the advising/confirming bank, which is located in the country of the beneficiary and is usually our bank's correspondent. I mean the issuing bank's correspondent. Then, the paying/accepting bank makes payment to the beneficiary. B: So in the process of making settlements by means of L/C, first of all, the buyer applies to the issuing bank to open a credit in favor of the exporter. Will his application always be approved? How about my application? A: Not necessarily. It will depend on the buyer's creditworthiness. Before issuing a credit, the bank must make certain of its customer's creditworthiness. If this is satisfactory, the credit is then advised to the exporter through a bank in his own country, that is the advising bank. In your case, I assure you that your application will be accepted, because we know your company very well through all the banking you have done with our bank. B: Glad to hear that. Then, what is the issuing bank supposed to do next? A: Under the term of credit, the issuing bank undertakes that the seller will be paid for his goods if he complies with certain stated conditions: these will call for certain documents, such as invoices, bills of lading and insurance documents. On condition that the documents presented to the advising bank due to him in exchange for tine documents. B: Will the paying bank send the documents to you or to us? A: To us by air-mail, never to you. When we have received the documents, we hand them to you. And when the ship docks, your company will presents the bills of lading to the shipping company and receive your goods. B: So the payment for the goods by our company to you is a matter of arrangement between us and of no concern tothe exporter? A: That's right. And the settlement between the banks for the amount paid by the issuing bank is carried out through their nostro and vostro accounts. B: Oh, I see. The advantage of a credit to the seller as you mentioned is self-evident—he knows that he will receive the payment provided he complies with its terms, then are there any benefits to us? A: Yes. Because the payment will only be made by the advising bank when the exact documents specified have been received—as these are the documents of tide, then once they are in hands of the paying bank, it will only be a matter of time before they come to your hands, allowing you to collect the goods. B: Oh, thank you so much. Now I have a clear idea about L/C. Tomorrow I will go to your bank and open it. Thank you again. See you tomorrow. A: OK. Great, you are welcome. See you tomorrow. {{B}} Letter of Credit{{/B}} A letter of credit is a financial instrument issued by a bank on behalf of one of its customers, which authorizes an individual or business firm to which it is addressed to draw drafts on the hank for its account under certain conditions as set forth in the document. In a letter of credit, the financial strength or credit of the bank is substituted for that of the bank's customers simply because the credit of the hank may be more substantial and more widely known. Another reason for heavy reliance on the letter of credit is that it is a desirable way of establishing certain quality standards or classifications that the goods must meet. Finally, it permits the seller to receive almost immediate payment for his goods, as soon as they are shipped; as a result, the cost to the importer is less than if the seller had to wait for payment for an extended period. Irrevocable letters of credit are used in international finance and, as the name implies, cannot be changed without the consent of all parties concerned. Risks are numerous in international trade: accidents at sea, strikes, riots, and civil commotions in port cities, all of which can cause damage to ships and their cargo. Typically many documents are necessary to comply with in an international transaction, and these must be specified in an application for a letter of credit. Several copies of a commercial invoice are needed for office use, and customs invoices are required before some goods can be brought into this country. Probably the most important document stipulated in an application for a letter of credit is the negotiable on- beard ocean bill of lading. This document is a receipt that the cargo was received and was loaded on board a ship. Whoever holds the on-board ocean bill of lading has the title to the goods. Therefore, the bank must have this document before payment is made. After an importer has completed arrangements for the issuance of a letter of credit by the bank, the bank is instructed to deliver the letter of credit to the beneficiary. After receipt of the letter of credit, the foreign exporter arranges for the shipment of the goods to the importer in accordance with the terms of the letter of credit. When the exporter has prepared all documents required and delivered the goods to the ship, the documents are then attached to a draft and submitted to the exporter's bank along with the letter of credit. If the documents are in order, the bank then negotiates the draft and forwards the documents to the bank in the importer's country. Several procedures could be employed in transferring the funds to exporter's bank. The importer's bank could merely credit funds to the exporting bank's account if the foreign bank carried a correspondent account with the bank in the importer's country. Banks that issue L/C may be paid in cash—a simple transfer from the customer's account to the bank. If, however the importer does not have all or a part of the funds, he must negotiate a loan from the bank. This loan could be unsecured assuming the borrower has sufficient credit worthiness, or it could be secured by the goods just imported. If these goods are ready for sell, they could be released to the importer on a trust receipt. As they are sold, the loan is repaid, or they might be placed in a warehouse, with the warehouse receipts serving as collateral for the loan. Whatever the arrangement, the importer receives the order bill of lading which gives him title to the goods. If the goods were to be, used in further manufacturing,a different kind of loan might be made with a longer maturity.(2).What is the safest way of securing settlement for exporter?（分数：2.00）填空项1:__________________ （正确答案：L/C）(3).Which company does Mr. Yang come from?（分数：2.00）填空项1:__________________ （正确答案：Southeast Computer Ltd.）解析：(4).How many parties are involved in it? And name 3 of them.（分数：2.00）填空项1:__________________ （正确答案：Five.）解析：an applicant a beneficiary an issuing bank an advising/confirming bank a paying/accepting bank(5).Before issuing a credit, what must the bank make certain?（分数：2.00）填空项1:__________________ （正确答案：The bank must make certain of its customer's creditworthiness.）解析：(6).Will the paying bank send the documents to the issuing bank or to the buyer?（分数：2.00）填空项1:__________________ （正确答案：To the issuing bank）解析：(7).What is the most important document stipulated in an application for L/C?（分数：2.00）填空项1:__________________ （正确答案：The bill of lading）解析：(8).Can the issuing bank be paid in cash?（分数：2.00）填空项1:__________________ （正确答案：Yes）解析：(9).Can a loan be secured by the goods which is just imported?（分数：2.00）填空项1:__________________ （正确答案：Yes）解析：(10).What gives the receiver the title to the goods?（分数：2.00）填空项1:__________________ （正确答案：The ruder bill of lading）解析：二、{{B}}SECTION TWO (Compulsory){{/B}}(总题数：12，分数：24.00)1.The Land Fund is now managed by the HKMA under the direction of the Financial Secretary as a combined portfolio with the Exchange Fund.（分数：2.00）A.正确B.错误√解析：Correction: The Land Fund is now managed by the HKMA under the direction of the Financial Secretary as a separate portfolio from the Exchange Fund.2.After July 1997, mainland Chinese banks applying to operate in Hongkong are still placed under the category of foreign banks.（分数：2.00）A.正确√B.错误解析：3.Money is a commodity itself.（分数：2.00）A.正确√B.错误解析：4.Credit instruments are issues by which investors supply permanent financing to firms or other borrowers including governments.（分数：2.00）B.错误√解析：Correction: Equity instruments are issues by which investors supply permanent financing to firms or other borrowers including governments.5.Debit instructions arise when the party to whom payment is to be made demands the funds from the bank holding the debtor's money.（分数：2.00）A.正确B.错误√解析：Correction: Credit instructions arise when the party to whom payment is to be made demands the funds from the bank holding the debtor's money.pared with call deposits, time deposits generally have a shorter deposit time restriction, which ranges from 24 hours to one week.（分数：2.00）A.正确B.错误√解析：Correction: Compared with time deposits, call deposits generally have a shorter deposit time restriction which ranges from 24 hours to one week.7.Under conditional lease, the company or the bank holds the title, takes the investment credits and depreciation expenses, and sells or releases the facilities when the lease expires.（分数：2.00）A.正确B.错误√解析：Correction: Under true lease, the company or the bank holds the title, takes the investment credits and depreciation expenses, and sells or releases the facilities when the lease expires.8.A breaker's cheque is a negotiable instrument.（分数：2.00）A.正确B.错误√解析：Correction: A banker's cheque may or may not be a negotiable instrument.9.Depending on the need of clients, SWIFT is the most convenient and the safest method.（分数：2.00）A.正确√B.错误解析：10.There is no circumstance where the "non-disclosure" rule can be broken without the consent of the customer.（分数：2.00）A.正确B.错误√解析：Correction: There are circumstances where the "non-disclosure" rule can be broken without the consent of the customer.11.Index deposit combines the benefit of a time deposit and an investment.（分数：2.00）A.正确√B.错误解析：12.A negotiable instrument is a conditional Order or promise to pay a certain amount of money. （分数：2.00）B.错误√解析：Correction: A negotiable instrument is an unconditional order or promise to pay a certain amount of money.三、{{B}}SECTION THREE (Compulsory){{/B}}(总题数：6，分数：24.00) any 3 types of leasing services offered by breaks.（分数：4.00）__________________________________________________________________________________________ 正确答案：()解析：a. financial lease b. operating lease c. full payment lease d. tree lease e. conditional lease f. leverage lease14.What is the significance of Hongkong Inter-bank Offered Rate?（分数：4.00）__________________________________________________________________________________________ 正确答案：()解析：a. a leading indicator of interest rate including the prime rate b. an indicator of liquidity of Hongkong Dollars in the market c. a reference price quoted for wholesale business15.List any 3 investment services that banks provide to their retail customers.（分数：4.00）__________________________________________________________________________________________ 正确答案：()解析：a. Discretionary portfolio management b. Unit trust management c. Stocks, bonds and other financial instruments administration d. Gold and other metals management e. Other derivative instruments management f. Custodian services16.List any 3 financing services that a hank provides to an exporter.（分数：4.00）__________________________________________________________________________________________ 正确答案：()解析：a. forward cover to eliminate exchange risk b. export finance on overdraft/loan, etc. c. negotiation or bill advance d. discount of bank acceptance under documentary credit e. shipping / marine insurance f. guarantee and performance bond17.State the parties involved in a documentary credit arrangement.（分数：4.00）__________________________________________________________________________________________ 正确答案：()解析：a. issuing bank b. advising banker c. the applicant d. the beneficiary18.List any 4 common signs and symptoms of overtrading.（分数：4.00）__________________________________________________________________________________________ 正确答案：()解析：a. drastic and sudden increase in sales b. longer credit period demanded from suppliers, and substantial increase in creditors c. shorter credit period given to customers d. rapid increase in overheads e. inventory builds up rapidly and becomes disproportionately large f. increased external financing from all source at higher interest rates g. decline in gross profit marginh. tightened liquidity i. increased debt to equity ratio, and higher gearing四、{{B}}SECTION ROUR{{/B}}(总题数：2，分数：20.00)19.What's the relationship between banks and clients? What services do banks provide to the personal customers?（分数：10.00）__________________________________________________________________________________________ 正确答案：()解析：(1)The relationship between banks and clients: A. It is a contractual agreement under which, once an account is established, the agreement begins to operate. B. It is a debtor-creditor relationship. Depositor-banker-borrower. C. It is the principal-agent relationship. The agent refers to the services that the bank provides to the customer. (2)The services provided by banks to personal customers: A. The services can be divided into two categories: General banking to regular customers and the private banking to specific or selected high net worth customers. B. General banking services: a. Traditional types of deposit taking services: Hong Kong Dollar deposit Current Account Deposit Savings deposit Time deposit Call deposit Target deposit Foreign Currency Deposit Savings Deposit Time and Call Deposit Swap Deposit Paper Gold Deposit b. Innovational types of deposit taking services: Index Deposit Time deposit plus investment Principal amount protected Interest rate is linked with the performance of stock market Investment Similar to the index deposit Covers more investment choices c. Personal loans: -Installment loans: -They are granted by the bank to the customer over a fixed period of time. -Repayment schedule is usually fixed in amount and time. -Secured installment is based on a security provided by the customer which is attached to the loan agreement. Most popular secured loans are those for financing the purchase of durable items. -Unsecured installment is a loan granted by banks up to a certain limit, without security; the loan is usually for a shorter period of time and for smaller value. d. Credit card and plastic money e. Automatic Teller Machines (ATMs) f. Foreign currency exchange g. Travel facilities h. Insurance services i. Hire purchase j. Investment and personal advice services C. Private banking to specific or selected high net worth customers: —The banker provides a wide spectrum of personal services to wealthy clients who may have little knowledge of how to handle their own financial affairs or who are too busy. —The banker provides tailor-made investment program to the customer.20.Describe money markets and capital markets.（分数：10.00）__________________________________________________________________________________________ 正确答案：()解析：{{B}}Money markets:{{/B}} {{I}} Concept:{{/I}} —Money markets are exchange systems where short-term, usually less than one year, highly liquid and readily marketable credit instruments are traded. {{B}}Instruments traded in Hongkong money markets:{{/B}} —Negotiable certificates of deposits: -a financial instrument issued by a bank or a deposit-taking company as evidence of indebtedness; -repayable either on demand or at a determined future time; -carries either a fixed or floating interest rate. {{I}} —Inter-bank lending and borrowing:{{/I}} -in Hongkong, it is an intangible market participated by licensed banks and deposit-taking companies; -borrowing is on unsecured and short-term basis, ranging from overnight call up to 6 to 12 months; -HIBOR is used to determine the offer price. {{I}} —Floating rate notes:{{/I}} -a negotiable instrument bearing a floating interest rate and issued by a company; -the quality of the note will be reflected by the reception of the notes in file market; -a highly-rated company will offer notes with a better rate. {{I}} —Commercial papers/ bills:{{/I}} -a form of negotiable instrument issued by companies; -a promissory note, unsecured and with a maturity date; -comparatively high yield. {{I}} —The Exchange Fund Bills:{{/I}} -similar to the treasury bills issued in other countries; -investors earn no interest but receive a return based on the discount from their face value at maturity; -important investors are: licensed banks, deposit-taking companies, insurance companies, other financial companies and institutions; -advantages: highly liquid; strong credit standing; a large and expanding market. {{I}} —The Government Bond {{/I}} {{B}}Instruments traded in the international money markets:{{/B}} —Treasury bills. —Eurodollars. —Eurodollar certificates of deposits. Through local brokers and dealers who bring buyers and sellers togetherfor a commission, one can easily get access to international money market instruments in Hongkong. {{B}}Capital markets:{{/B}} {{I}}Concept:{{/I}} —it is a market where long-term financial instruments with maturities of upwards of one year are traded. {{I}}General characteristics of the instruments:{{/I}} —greater risk; —less liquidity; —higher degree of default rate. {{I}}Types of instruments:{{/I}} —Credit instruments -they are issues by which a lender advances funds to a borrower in return for the borrower's IOU. —Equity instruments -they are issues by which investors supply permanent financing to firms or other borrowers including governments.五、{{B}}SECTION FIVE{{/B}}(总题数：3，分数：20.00)21.How do banks manage their risk of bad loan?（分数：5.00）__________________________________________________________________________________________正确答案：()解析：(1)Careful examination before the loan is granted. A. The amount of loan: Never more than a quarter of borrower's own financial assets. Examine the corporate customer's financial statements of assets and liabilities. B. Purpose of the credit: Whether the credit is most suitable to the borrower's need. Whether the loan is to be used in illegal activities or speculative purpose. Decline the loan used in highly speculative purpose. C. Repayment of schedule: Examine the possible sources of the income of the borrower. Determine if there will be sufficient cash-flow over the term of the loan. D. Security available: Factors should be taken into account when considering security: a. value; b. types; c. acceptability; d. reliability. (2)Monitor the performance of the loan during the course of the loan. A. Early identification of the wanting signals of potential bad loan: a. poor management; b. unfavorable industry and market conditions; c. economic cycle and political instability; d. unsatisfactory account conduct; e. deteriorating financial position.B. Detecting the criteria for immediate action: a. when repayment of obligations are deteriorating to a stage where a formal demand for payment has been issued to the borrower and such demand has not been complied with; b. there is a "winding-up" order against the borrower; c. a receiver has been appointed to manage the borrower's affairs; d. a voluntary "winding-up" resolution has been passed by the shareholders of a borrower under Section 228 (1) (c) of the Companies Ordiance;e. the directors have made a statutory declaration under Section 228(1)(a) of the Companies Ordinance that the company is unable to carry oil with its business. (3)Take the remedial actions when the diagnose appeared. A. Restructuring: a. because of a short-term liquidity problem, the borrower can not repay the loan as originally scheduled, the bank can allow more time for the repayment by restructuring the repayment schedule. b. the restructuring ways: extending the repayment period; split the repayment period into several phases; selling of assets. B. Recovery: a. the bank can exercise recovery if all avenues for restructuring have been exhausted. b. the aim of the recovery is to minimize the amount of write-off relating to the loan. c. actions taken: check the security position to secure that proper charges are in place. send out a formal demand for loan repayment and call in guarantees. (4)Take legal action when satisfactory arrangement cannot be made for the recovery.22.(a)State the main function of the following documents:(i) bill of lading(ii) certificate of insurance(iii) certificate of origin(iv) combined shipment document(b)Comparisons between financial lease and operating lease（分数：5.00）__________________________________________________________________________________________ 正确答案：()解析：(a)(i)Bill of ladingThe bill of lading is a receipt for, and document of title to, the goods.It is legal evidence of a contract of carriage for the goods dispatched by sea and land.It is usually an essential document for insurance claims.(ii)Certificate of insuranceA document which shows the policy covering the goods being delivered.It states the type of insurance, the risks involved and the amount covered.The goods covered and the amount of value stated in the certificate must be consistent with the contents of other documents.It must describe the date of the policy covered with the amount at least equivalent to the CIF value of the goods.(iii)Certificate of OriginIt provides evidence of the origin of the goods, i.e., where the goods are produced.It is used by the importing authorities to determine the applicable tariff rates.It is not required unless the buyer or the buyer's country requests it.(iv)Combined Shipment DocumentIt describes the transfer of goods from one mode of transport to another.It is usually drawn together with the bill of lading or the air waybill.The document is needed for transshipment.(b)Comparisons between financial lease and operating lease:23.Wang wants to transfer his money from China to the US. Could you explain the different money transfer methods provided by banks to him?（分数：10.00）__________________________________________________________________________________________ 正确答案：()解析：There are three methods of money transfer provided by banks: {{B}} Draft:{{/B}} —A draft is an order in writing, made out to a person other than the maker, instructing him to pay a certain sum of money to a named person called the payee. It is also called a "bank draft" or "banker's cheque". —A draft can be sent by mail or handed over directly to the payee by the customer. {{I}} —the process of a draft handling:{{/I}} -A request from a customer to a banker to issue a draft to a recipient overseas; -The draft drawn by the drawer bank on the drawee bank for the transaction of the draft; -The drawer advises the drawee of the issue of the draft and informs the draweebank to pay the payee when the draft is presented for payment. {{I}} —The features:{{/I}} -A draft sent by the customer is the least expensive, but is the slowest form of transmission. -The customer bears the risks of theft, destruction or loss in the mail system when the draft is sent by the customer himself. {{B}} Mail transfer:{{/B}} Mail transfer is an instruction given by one hank to another, based on the request of the customer. {{I}} —The way to transfer :{{/I}} -a written draft; -internal communication system. {{I}} —The banks involved:{{/I}} -the remitting bank: the hank which instructs another bank to make payment to the nominated recipient; -the advising bank: the bank which receives the instruction from the remitting bank. {{I}} —The process of mail transfer:{{/I}} -The request from a customer to the remitting hank to transfer the money; -The remitting bank will send a statement to the advising bank and tell it the exact amount being transferred, the name of the payee and his address; -The advising bank will inform the nominated recipient and check the recipient's identity and then release the funds. {{I}} —The features of the mail transfer:{{/I}} -It is a little safer. -The speed is low. -It could also be delayed, destroyed or even stolen. -Such delay involves additional interest payment. {{B}} Telegraphic transfer:{{/B}} —It is an authenticated order given by the remitting hank to the advising bank to which it is addressed to make available specified funds to a named recipient. —The way to transfer: cable or telex. —The process of the telegraphic transfer: -The request from a customer to the remitting bank; -The remitting bank will send a statement to the advising bank through cable or telex which contains a "test-key"; -The advising bank receives the transmission and uses the test-key to verify the genuineness of the telex or cable instruction. And then advises the recipient to collect the funds. {{I}} —The features of the telegraphic transfer:{{/I}} -It is the most expensive way of money transfer; -Fast in speed; -One of the reliable forms of money transfer.。

二、多选英语1．The current stock price is ＄29 and a 3-month call with a strike price of ＄30 costs ＄2.90. Under what circumstances will the option be exercised?（）A．stock price is 29$ B．stock price is 30.90$C．stock price is 26$ D．stock price is 35$2．Trading strategies of hedge funds include （）A．Market neutral B．Treasury bondsC．Convertible arbitrage D．Emerging markets3．When the spot price is above the futures price during the delivery period，a clear arbitrage opportunity by traders is （）A．Make delivery B．Buy a futures contractC．Buy the asset C．Sell a futures contract E．Sell the asset4．Individuals taking positions can be categorized as （）A．scalpers B．hedgers C．arbitrageurs D．speculators 5．The main features that futures are different from forward are （）A．Settled daily B．Some credit riskC．Standardized contract D．Traded on an exchange6．If the price of gold goes up，the conclusions that the following are correct are （）A．The company that does not use futures contracts to hedge its purchase is unaffected on its gross profit margin.B．The company’s profit margin will increase after the effects of hedge have been taken into account.C．The company’s profit margin will decrease after the effects of hedge have been taken into account.D．The wholesale price of the jewelry will tend to lead a corresponding decrease. 7．When β=3.0，it illustrates that（）A．the excess return on the portfolio tends to be three times as great as the excess return on the marketB．the sensitive to market movement is twice as a portfolio with a beta 1.5C．it is therefore necessary to use twice as many contracts to hedge the portfolio D．if the beta of portfolio falls to 2.0，the number of contracts shorted should increase8．The bank’s statement that the interest rate is 10% means that $100 grow to （）A．$110.38 when the interest rate is measured with semiannual compounding B．$110.52 when the interest rate is measured with daily compoundingC．$110.52 when the interest rate is measured with continuous compounding D．$110.47 when the interest rate is measured with monthly compounding 9．Suppose the underlying asset is gold and assume no storage costs or income. If F0<S0e rT，an investor can adopt the following strategy to make a profit.（）A．Borrow S0 dollars at an interest rate r for T yearsB．Sell the gold for S0C．Take a long position in a forward contract on 1 ounce of time TD．Invest the proceeds at interest rate r for time T10．When S is strongly positively correlated with interest rates，so （）A．Forward prices will tend to be slightly higher than futures pricesB．Futures prices will tend to be slightly higher than forward pricesC．when S increases，an investor who holds a long futures position makes an immediate gainD．when S decreases，an investor who holds a long forward contract is not affected.11．If the futures price is an increasing function of the time to maturity，so （）A．the benefits from holding the asset are less than the risk-free rateB．it is usually optimal for the party with the short position to deliver as late as possibleC．the interest earned on the cash received outweighs the benefits of holding the assetD．futures prices should be calculated on the basis that delivery will take place at the end of the delivery period.12．The day count conventions that are commonly used in the United States are （）A．actual/365 B．actual/actual C．30/360 D．actual/360 13．The examples of the instruments that can be used for hedging by swap market maker are （）A．bonds B．forward rate agreements C．stock option D．interest rate futures14．Suppose that the term structure of interest rates is upward-sloping at the time the swap is negotiated，this means （）A．The value of the FRAS corresponding to early payment dates is negativeB．The forward interest rates increase as the maturity of the FRA increasesC．The value of the FRAS corresponding to later payment dates is negativeD．The forward interest rates decrease as the maturity of the FRA increases 15．The values of puts increase as （）A．The stock price decreases and the strike price decreaseB．The time to expiration increasesC．V olatility increasesD．The net effect of an interest rate increase and the accompanying stock price decrease16．The spread trading strategies that require an initial investment include （）A．A bull spread when created from putsB．A bear spread when created from putsC．A butterfly spread when created from callsD．A butterfly spread when created from puts17．When an investor is expecting a large move in a stock price，the combinations that the investor can choose include （）A．Straddles B．Strips C．Strangles D．Straps四、判断英语1．Derivatives can be dependent on almost any variable.（）2．One of the parties to a forward contract assumes a short position and agrees to buy the underlying asset on a certain specified future date for a certain specified price. （）3．Forwards and futures are similar instruments for speculators in that they both provide a way in which a type of leverage can be obtained.（）4．Future contracts offer a way for investors to protect themselves against adverse price movements in the future，but not allowing them to benefit from favorable price movements. （）5．Forwards are traded in over-the-counter market，options are traded on exchanges，but futures are traded both on exchanges and in over-the-counter market. （）6．The purpose of daily price limits is to prevent large price movements from occurring because of too many contracts. （）7．As the delivery period for a futures contract is approached，the futures price converges to the spot price of the underlying asset. （）8．A bona fide hedger is often subject to lower margin requirements thana speculator. （）9．Under the forward contract，the whole gain or loss is realized at the end of the life of the contract；under the futures contract，the gain or loss is realized day by day. （）10．A company that does hedge can expect its profit margins to be roughly constant.（）11．In general，basis risk increases as time different between the hedge expiration and the delivery month increases. （）12．A hedge using index futures removes risk arising from the performance of the portfolio ralative to the market. （）13．By choosing a portfolio so that the duration of assets equals the duration of liabilities，a financial institution eliminates its credit risk. （）14．Market segmentation theory conjectures that long-term interest rates should reflect expected future short-term interest rates. （）15．The forward price is higher than the spot price because of the cost of financing the spot purchase of the asset during the life of the forward contract. （）16．On January 8，2007，interest rates on the Swiss franc were lower than the interest rate on the Us dollar，so futures price for this currency increases with maturity. （）17．If the futures price is an increasing function of the time to maturity，it is usually optimal for the party with the short position to deliver as late as possible. （）18．When bond yields are in excess of 6%，the conversion factor system tends to favor the delivery of low-coupon short-maturity bonds. （）19．Duration matching can ensure that a small parallel shift in interest rates will have little effect on the value of the portfolio of assets and liabilities. （）20．For short maturities Eurodollar futures interest rate is not the same as the corresponding forward interest reate. （）21．The 3-basis-point spread earned by the financial institution is partly to compensate it for the risk that one of the two companies will default on the swap payments. （）22．The probability of a dafault by a company with a relatively low credit rating is liable to decrease faster than the probability of a default by a company with a relatively high credit rating. （）23．If the term structure of interest rates is downward-sloping at the time the swap is negotiated，the forward interest rates increase as the the maturity of the FRA increases. （）23．Potential losses from defaults on a swap are much less than the potential losses from defaults on a loan with the same principal. （）24．As the time to expiration increases，call American options become valuable but put American options become unvaluable. （）25．The net effect of an interest rate decrease and the accompanying stock price decrease can be to decrease the value of a put option. （）26．The value of a call option is negatively related to the size of an anticipated dividend. （）27．One of the reason that an American call on a non-dividend-paying stock should not be exercised early is the time value of money. （）28．A bull spread strategy limits the investor’s upside potential by buying a call option. （）29．A butterfly spread is an appropriate strategy for an investor who feels that stock price can move largely. （）30．For a calendar spread a loss is incurred when the stock price is significantly above or significantly below the strike price of the short-maturity option at the expiration of this option. （）31．In a strip the investor considers a decrease in the stock price to be more likely than an increase. （）32．As the probability of an upward movement in the stock price increases，the value of a call option on the stock increases. （）33．When we move from a world with one set of risk preferences to a world with another set of risk preferences，the expected growth rates in variables change and their volatilities change. （）34．If European options expiring at time T were available with every single possible strike price，any payoff function at time T could in theory be obtained. （）35．When pricing options the resulting prices are not just correct in a risk-neutral world，but in other worlds as well. （）六、填空英语1．Suppose that you enter into a short futures contract to sell July silver for ＄10.20 per ounce on the New York Commodity Exchange. The size of the contract is 5,000 ounces. The initial margin is ＄4,000, and the maintenance margin is ＄3,000. What change in the futures price will lead to a margin call?（）2．Suppose that the standard deviation of quarterly changes in the prices of a commodity is ＄0.65, the standard deviation of quarterly changes in a futures price on the commodity is ＄0.81, and the coefficient of correlation between the two changes is 0.8. What is the optimal hedge ratio for a 3-month contract?（）3．An airline expects to purchase 4 million gallons of jet fuel in 2 month and decides to use heating oil futures for hedging.Each heating oil contract traded on NYMEX is on 42 000 gallons of heating oil.We suppose F σ=0.0313，s σ=0.0263，ρ=0.928，and the spot price and the futures price are 2.74 and 2.79 dollars per gallon.So that the optimal number of contracts is （）.4．What rate of interest with continuous compounding is equivlent to 15% per annum with monthly compounding?（）5．Suppose that LIBOR zero and forward rates are as in Table 4.5.Consider an FRA where we will receive a rate of 7%，measured with annual compounding ，on a principal of $5 million between the end of year 3 and the end of year 4.So the value of the FRA is $（）.6．Suppose that 6-month, 12-month, 18-month, 24-month, and 30-month zerorates are, respectively, 4%, 4.2%, 4.6%, and 4.8% per annum, with continuous compounding.The cash price of a bond with a face value of 100 that will mature in 30 months and pays a coupon of 4% per annum semiannually is （）.7．Suppose a bond price B is 96.273，and the duration D is 3.562.Whenthe yield on the bond increases by 15 basis points ，the bond price goes down to （）.8．Suppose that you enter into a 6-month forward contract on anon-dividend-paying stock when the stock price is ＄30 and the risk-free interest rate (with continuous compounding) is 12% per annum. The forward price is $（）.9．A 1-year long forward contract on a non-dividend-paying stock is entered into when the stock price is ＄40 and the risk-free rate of interest is 10% per annum with continuous compounding. Six months later, the price of the stock is ＄45 and the risk-free interest rate is still 10%. The value of the forward contract is $（）.10．The spot price of silver is ＄9 per ounce. The storage costs are ＄0.24 per ounce per year payable quarterly in advance. Assuming that interest rates are 10% per annum for all maturities, the futures price of silver for delivery in 9 months is $（）per ounce.11．It is January 9, 2009. The price of a Treasury bond with a 12% coupon that matures on October 12, 2020, is quoted as 102-07. The cash price is （）.12．It is January 30. You are managing a bond portfolio worth ＄6 million.The duration of the portfolio in 6 months will be 8.2 years. The September Treasury bond futures price is currently 108-15, and the cheapest-to-deliver bond will have a duration of 7.6 years in September. You should hedge against changes in interest rates over the next 6 months.So you need （）contracts to short!13．On August 1, a portfolio manager has a bond portfolio worth ＄10 million. The duration of the portfolio in October will be 7.1 years.The December Treasury bond futures price is currently 91-12 and the cheapest-to-deliver bond will have a duration of 8.8 years at maturity.The portfolio manager want to immunize the portfolio against changes in interest rates over the next 2 months.So he should short （）contracts.14．Consider an exchange-traded call option contract to buy 500 shares with a strike price of ＄40 and maturity in 4 months. When there isa 4-for-1 stock split，the number of shares covered by one contractis （）.15．The rice of a European call that expires in 6 months and has a strike price of ＄30 is ＄2. The underlying stock price is ＄29, and a dividend of ＄0.50 is expected in 2 months and again in 5 months. The term structure is flat, with all risk-free interest rates being 10%.The price of a European put option that expires in 6 months and hasa strike price of ＄30 is $（）.。

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.该题您未回答:х该问题分值: 2答案:B2.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.该题您未回答:х该问题分值: 2答案:C3.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 level该题您未回答:х该问题分值: 2答案:C4.What unemployment is formed because of the economic recession? ()A friction unemploymentB structural unemploymentC cyclical unemploymentD natural unemployment该题您未回答:х该问题分值: 2答案:C5.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.该题您未回答:х该问题分值: 2答案:B6.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.该题您未回答:х该问题分值: 2答案:A7.When a country’s currency appreciates, the country’s goods abroad become ______ and foreign goods in that country become ______.A cheaper... more expensiveB more expensive... cheaperC cheaper...cheaperD more expensive... more expensive该题您未回答:х该问题分值: 2答案:B8.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 bond该题您未回答:х该问题分值: 2答案:A9.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.该题您未回答:х该问题分值: 2答案:A10.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.该题您未回答:х该问题分值: 2答案:DSECTION 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 primary companies 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 scenarioanalysis to adjust cash flows. Sigmund asks him, “Why didn’t you s imply 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 to exhibit 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 these companies will tend to respond differently to country risks. This makes it virtually impossible to adjust the discount rate for country specific risk and come 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%.该题您未回答:х该问题分值: 2答案:ABecause a U.S. denominated local government bond does not exist, the following formula must be used to calculate the country risk premium: Local government bond yield (non–US dollar denominated)- U.S. 10 year T-bond yield- Inflation differential between local country and U.S.- Yield spread between comparably rated U.S. corporate and U.S. T-bond yields= Country Risk PremiumCountry Risk Premium = 11.50 – 4.50 – (6.50-3.00) – (7.75-4.50) = 11.50 – 4.50 – 3.50 – 3.25= 0.25Note that if a U.S. denominated local government bond did exist, we would use that bond in our calculation and would not include the inflation differential.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 the company has an inflation flow-through rate of 65 percent? ()A 13.75.B 5.33.C 3.00.D 21.25该题您未回答:х该问题分值: 2答案:AP0/E1 = 1 / [real required return + (1 – inflation flow-through rate) × inflation rate]= 1 / [0.05 + (1-.65) × 0.065]= 1 / [0.05 + 0.02275]= 1 / 0.07275 = 13.7513.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 reason2 does not.B All three of the reasons given support Testorf’s cash flowadjustment.C Reasons 2 and 3 su pport Testorf’s cash flow adjustment, but reason1 does not.D Reason 1 supports Testorf’s cash flow adjustment, but reasons 2and 3 do not.该题您未回答:х该问题分值: 2答案:AAlthough emerging market risk can be incorporated into the valuation process either by adjusting the discount rate (required return), or by adjusting cash flows in a scenario analysis, evidence suggests that country risks can be best captured through cash flow adjustment. The four arguments that support adjustments to cash flow rather than adjusting the discount rate are:Country risks are diversifiable. Modern finance theory states that country risks can be diversified away, and therefore should not be included in the cost of capital. Testorf’s first reason is correct.Companies respond differently to country risk. A general discount rate cannot be applied uniformly to every company valuation in the country because it would not capture the different operating characteristics of the company that could be captured by adjusting the cash flows. Testorf’s third reason is correct.Country risk is one-sided. Emerging markets have a tendency for companies to exhibit one-sided (down only) risk profiles. Therefore, the risks are asymmetrical and adjusting the cash flows best captures these asymmetrical risks. Testorf’s second reason is incorrect.Identifying cash flow effects aids risk management. Managers tend to identify specific factors affecting cash flow and plan to mitigate their risks by adjusting cash flows rather than adjusting the discount rate.14.Due to the high inflation rate of the local country, Testorf calculates the return on invested capital (ROIC) for Kiani by revaluing the company’s fixed assets. In comparing the performance of Z uflak to other local companies, the ROIC calculation should: ()A Exclude goodwill.B Exclude depreciation.C Not revalue fixed assets.D Exclude net operating profit adjusted for taxes.该题您未回答:х该问题分值: 2答案:AWhen calculating ROIC, excluding goodwill is useful for comparing different local companies and evaluating trends. Goodwill can distort the comparison when firms have differing levels of goodwill. ROIC that includes goodwill measures returns generated by the firm’s acquisitions based on the use of its investors’ capital, and is used for determining whether or not the company earned an acceptable rate of return over its cost of capital. Note that revaluation is also important here. ROIC including revaluation of fixed assets measures the company’s operating performance, and is also useful for comparing different companies and evaluating trends.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.该题您未回答:х该问题分值: 2答案:CClosed-end country funds provide a simple way to access local foreign markets while achieving international diversification. One of the advantages of closed-end country funds is that investors often have greater access to emerging markets, even those from countries that tend to restrict foreign investment. This is due to the fact that redemptions are less of a concern to the emerging market government because the number of shares of the fund is fixed, and redemptions do not result in capital outflows. Statement 1 on Solak’s note is correct.One of the disadvantages of closed-end country funds is that they may trade at a significant discount premium or discount to their NAV. Although the actual performance of the stock within the closed end fund may have a low correlation with the U.S. market, the NAV of the fund may be highly correlated with the U.S. market, thus reducing the benefit of international diversification. Statement 2 on Solak’s note is incorrect. Explanations of terms16.Real interest rate该题您未回答:х该问题分值: 6答案:Real interest rate is the nominal rate you earn corrected for the change in the purchasing power of money or for the expected inflation. Roughly speaking, the real interest rate is the difference between the nominal interest rate and the inflation rate, or the nominal interest rate minus the inflation rate.17.Window instruction该题您未回答:х该问题分值: 6答案:It refers to the case in which a central bank sets the amount of loans to increase or decrease for each season for commercial banks and requires banks to obey the instruction. The measure is not formulated by the law, but it is only an instruction given by the central bank of a country.18.Special drawing rights该题您未回答:х该问题分值: 6答案:An international type of monetary reserve currency, created by the International Monetary Fund (IMF) in 1969, which operates as a supplement to the existing reserves of member countries.19.Money market mutual funds该题您未回答:х该问题分值: 6答案:Funds that issue shares to savers backed by holdings of high-quality short-term assets.20.Putable bonds该题您未回答:х该问题分值: 6答案:A putable bond grants the bondholder the right to sell the issue back to the issuer at par value on designated dates. The advantage to the bondholder is that if interest rates rise after the issue date, thereby reducing the market value of the bond, the bondholder can sell the bond back to the issuer at par.21.Please list some Capital Market Instruments.该题您未回答:х该问题分值: 10答案:The capital market is extremely important because it raises the funds needed by net borrowers to carry out their spending and investment plans.A smoothly functioning capital market influences how fast the economy grows.(1)BondsBonds are long-term debt obligations issued by corporations and government units. Proceeds from a bond issue are used to raise funds to support long-term operations of the issuer (e.g., for capital expenditure projects). In return for the investor’s funds bond issuers promise to pay a specified amount in the future on the maturity of the bond (the face value) plus coupon interest on the borrowed funds (the coupon rate times the face value of the bond). If the terms of the repayment are not met by the bond issuer, the bond holder (investor) has a claim on the assets of the bond issuer. Bond markets are markets in which bonds are issued and traded. They are used to assist in the transfer of funds from individuals, corporations, and government units with excess funds to corporations and government units in need of long-term debt funding.(2) StocksStocks are equity claims representing ownership of the net income and assets of a corporation. The income that stockholders receive for their ownership is called dividends. There are two types of stocks, common and preferred. A share of common stock in a firm represents an ownership interest in that firm. Preferred stock is a form of equity from a legal and tax standpoint. Preferred stock pays a fixed dividend, and in the event of bankruptcy of the corporation, the owners of preferred stock are entitled to be paid first before the corporation’s other creditors. Common stock pays a variable dividend, depending on the profits that are left over after preferred stockholders have been paid and retained earnings set aside.(3) FundsIn a narrow sense, fund is a reserve of money set aside for some purpose. In general, fund means a financial institution that sells shares to individuals and invests in securities issued by other companies. As you probably know, mutual funds have become extremely popular over the last20 years. What was once just another obscure financial instrument is nowa part of our daily lives. More than 80 million people, or half of the households in America, invest in mutual funds. That means that, in the United States alone, trillions of dollars are invested in mutual funds. In fact, to many people, investing means buying mutual funds. After all, it’s common knowledge that investing in mut ual funds is (or at least should be) better than simply letting your cash waste away in a savings account, but, for most people, that’s where the understanding of funds ends. It doesn’t help that mutual fund salespeople speak a strange language that is int erspersed with jargon that many investors don’t understand. Originally, mutual funds were heralded as a way for the little guy to get a piece of the market. Instead of spending all your free time buried in the financial pages of the Wall Street Journal, all you had to do was buy a mutual fund and you’d be set on your way to financial freedom. As you might have guessed, it’s not that easy. Mutual funds are an excellent idea in theory, but, in reality, they haven’t always delivered. Not all mutual funds are c reated equal, and investing in mutuals isn’t as easy as throwing your money at the first salesperson who solicits your business.22.What kind of Economic Policy in an Open Economy该题您未回答:х该问题分值: 10答案:International economic policy refers to activities of national governments that affect the movement of trade and factor inputs among nations. Included are not only the obvious measures such as import tariffs and quotas, but also domestic measures such as monetary policy and fiscal policy. Policies that are undertaken to improve the conditions of one sector in a nation tend to have repercussions that spill over into other sectors. Since an economy’s internal (domestic) sector, one cannot designate economic policies as purely domestic or purely foreign. Rather, the effects of economic policy should be viewed as being located on a continuum between two poles—an internal-effects pole and anexternal-effects pole. Although the Primary impact of an import restriction is on a nation’s trade balance, for example, there are secondary effects on national output, employment, and income. Most economic polices are located between the external and internal poles rather than falling directly on either one.23.What is the Modern Quantity Theory of Money Demand?该题您未回答:х该问题分值: 10答案:(1) The modern quantity theory of money refers to the monetary theory developed by the Chicago School. From the late 1940s through the 1990s, a group of economists, associated in varying degrees with Chicago School, build upon the traditions of classical economics with the benefit of modern theoretical and statistical techniques. Represented by Milton Friedman, originally labeled the Chicago School, but currently referred to either as monetarists or new classical macroeconomists, this informal group has produced a set of ideas with important implications for the role of money in the economy. In 1956, Friedman published his paper " The Quantity Theory of Money Demand—A Restatement", which marked the emergence of the modern quantity theory of money. On one hand, Friedman accepted the Cambridge School and Keynes’s thought that money is an asset and the demand for money is people’s behavior of choosing assets; on the other hand, Friedman basically adopted the conclusion of the traditional quantity theory of money, i. e., the change of the quantity of money is the cause of the movement of price level.(2) In his design of the function of demand for money, Friedman took into consideration the two factors; first, the total wealth expressed with permanent income which is in a reverse ratio to the demand for money; second, the difference between expected rates of return of holding money and other assets. The higher the rate of return of other assets, the weaker people’s desire to hold money. Friedman did not analyze people’s motives of holding money like Keynes, but continued to study the causes of holding money and thought that there are many different factors affecting the demand for money. Friedman used a function to express the demand for money: Md / P =f (Yp, Rm, Rb, Rf, P, W, U )Md / P: the demand for real money balances,Yp; The real GDP, the index used to count wealth, called permanent income,Rm; The expected rate of return for money,Rb: The expected rate of return for bonds,Re: The expected rate of return for stocks (common stocks),P; The expected rate of return of goods or expected rate of inflation, W; The ratio of non-human wealth to human wealth,U; Other random variables, including preference, custom, technology, system, etc.(3) In Friedman’s view, the wealth affecting the money demand is permanent and the money demand will not fluctuate with ups and downs of business cycles because the permanent income fluctuates a little in shortrun. Generally speaking, the demand for an asset has a positive interrelation with the wealth people hold. Since money is an asset, the demand for money has a positive interrelation with wealth (Yp). Friedman held that factors affecting money demand are the expected rate of return of the assets that can substitute money. Besides holding wealth in the form of money, people can hold their wealth in other forms, say, bonds, stocks (common stocks) and goods. The opportunity cost of holding money is expressed by the expected rate of return of other assets compared with money. When the expected rates of return of bonds (Rb) and stocks (Re) rise the opportunity cost of holding money will increase which will result in less demand for money. The higher the expected rate of return of other assets, the less the demand for money. P is the expected rate of return of holding wealth in the form of goods compared with money. When the prices of goods rise, the rate of return of goods equals the rate of inflation rate. When the expected rate of return of goods is higher compared with that of holding money, people will do well to "beat the higher prices" by purchasing goods sooner than usual (this is the "expectations effect"). This will reduce the demand for money. W is the ratio of non-human wealth to human wealth. Non-human wealth refers to bonds, stocks and other real assets, while human wealth refers to individuals’ ability to make money. This ratio constrains people’s income, e. g.; human wealth can not beobtained when labor force is in a state of unemployment, which naturally reduces the demand for money. Given certain level of wealth, the larger the W, the smaller the money demand. U which refers to other random variables is in a negative correlation with the money demand.Monetarists adhere to virtually all the tenets of classical economists. However, they made some modifications. Some of them have used the quantity theory as a framework for describing the relationship between M and PY rather than just M and P and view the invisible hand as pushing the economy toward the full employment level of production. A second modification of classical thought occurred in Milton Friedman’s revival of the quantity theory is that Friedman replaced the idea of the stability of velocity with the less militant notion that it is predictable. Or, money demand may not be a fixed fraction of total spending; it is related to PY in a close and predictable way.Perhaps the most important classical tradition upheld by modern monetarists is the inherent stability of the economy at full employment. This explains the monetarist rejection of governmental attempts to fine-tune economic activity. A higher level of economic activity requires more capital and labor or technological improvements; more money only leads to inflation. The answer to cyclical downturns is to wait for the natural upturn. Government intervention is unnecessary and potentially damaging.24.If you are a policy maker, what are your Ultimate Targets of Monetary Policy?该题您未回答:х该问题分值: 10答案:The Four Ultimate Targets of Monetary PolicyThe four targets of monetary policy include:(1) Economic growth,(2) Price stability,(3) Full employment, and(4) Balance of payments equilibrium.(1) Economic growthEconomic growth refers to the growth of a nation’s GDP which is the total value of goods and services domestically produced. People’s living standard has increased dramatically over history as result of the growth of the economy and its productivity. But growth means more than merelyincreasing total output. It requires that output increase faster than the population so that the average output per person expands. Economic growth in every country is the first target of monetary policy. Without certain growth rate, national economy will be in a state of stop or shrinkage and it will be impossible to enhance a nation’s economic strength and raise people’s living standard.(2) Price stabilityPrice stability means the stability of currency value and control of inflation without great change of price level within certain period. The price stability reflects the general trend of price change or average level. In modern economic society, the general price level shows a rising trend in fact. Price stability is to limit the increase rate of the price level of a certain period within certain scope. As for the certain scope within which the increase rate of price level should be kept, there are different views among economists. Generally speaking, if the rising rate of price level is within 2%—3%, it can be called price stability. Consistently stable prices help create an environment in which the other economic targets are more easily reached.(3) Full employmentFull employment means the people who have ability to work and are willing to work can find suitable jobs at present wage level. Full employment is measured with the unemployment rate of labor force. The unemployment rate is the ratio of the number of the unemployed and the labor force willing to work. The unemployment rate represents the extent of full employment in a society. Unemployment means a loss of potential output and imposes costs on the entire economy.For many reasons, a high employment level is one of the paramount goals of monetary policy. Unemployment deprives families of their chief source of income, triggers a host of social problems such as increased incidence of crime and mental illness, and impacts most heavily on the disadvantaged and those at the lower end of the income scale. Collectively, increased unemployment reduces the nation’s level of output and income as well as tax revenues at all levels of government, thereby impairing such public services as roads, public security, and education.Monetary policy affects the unemployment rate by influencing aggregate expenditures on goods and services and the level of the nation’s gross domestic product (GDP). As monetary policy becomes more stimulative, aggregate expenditures and GDP increase and the unemployment rate falls, sometimes below the natural rate. The natural unemployment rate is defined as the lowest level at which the nation’s unemployment rate can be maintained without triggering an increase in the existing inflation rate. If monetary policy becomes too stimulative and the nation’s unemployment rate falls below the natural rate, inflation accelerates. Hence, a goal of central bank policy is to keep the nation’sunemployment rate as close as possible to the natural unemployment rate without going below it. Unfortunately, the natural unemployment rate changes over time and is uncertain at any point in time. Most economists believe it is currently somewhere in the 5 to 6 percent range.(4) Balance of payments equilibriumBalance of payments is the total record of a country’s (or region’s) economic transactions, including money receipts from and payments to abroad, the difference between receipts and payments forms the surplus or deficit. It also includes some economic transactions even if they will never give rise to monetary settlements. Balance of payments during certain period reflects the state of economic development of a country and the country’s external economy. To maintain balance of payments equilibrium and reasonable quantity of foreign exchange are important conditions of a country’s stable development of economy and international intercourse. So to maintain balance of payment equilibrium should be another important target of monetary policy.。

金融英语初级模拟试题1．Usually the low interest rate currency trades at a ______ to the high interest rate currency in the forward market．A．premiumB．parC．discountD．bar2．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 date3．The most liquid of all assets is ______．A．the stock of commercial banksB．M 1C．intelligenceD．the debt of major corporations4．Beta and standard deviation differ as risk measures in that beta measures ______．A．only unsystematic risk， while standard deviation measures total riskB．only systematic risk， while standard deviation measures total riskC．both systematic and unsystematic risk， while standard deviation measures only unsystematic riskD．both systematic and unsystematic risk， while standard deviation measures only systematic risk5．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 income6．An analyst estimates that a stock has the following probabilities of return depending on the state of the economy：State of economy Probability ReturnGood 0．1 15%Normal 0．6 13%Poor 0．3 7%The expected return of the stock is ______．A．7．8%B．11．4%C．11．7%D．13．0%7．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 i n 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．When a country’s currency appreciates，the country’s goods abroad become ______ and foreign goods in that country become ______．A．cheaper．．．more expensiveB．more expensive．．．cheaperC．cheaper．．．cheaperD．more expensive．．．more expensive10．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 bid C．It consults its bank about issuing a standby letter of creditD．It asks its bank to issue a performance bond11．ABC Co．Ltd．has a $3 500 account receivable from XYZ Store．On March 20， XYZ makes a partial payment of $2 100 to ABC．The journal entry made on Mdrch 20 by ABC to record this transaction includes ______．A．a debit to the cash received account of $2 100B．a credit to the Accounts Receivable account of $2 100C．a debit to the Cash account of $1 400D．a debit to the Accounts Receivable account of $1 40012．Intervention in the foreign exchange market means the government ______．A．restricts individuals from buying and selling foreign exchangeB．restricts the importation of certain goodsC．or central bank buys or sells foreign exchangeD．devalues the currency in the foreign－exchange market13．Which of the following is not a form of counter trade? ______．A．Counter purchaseB．Buy－back C．OffsetD．Balance trade14．A credit to a revenue account ______．A．decreases revenuesB．increases equityC．decreases equityD．increases assets15．If the government guaranteed that anyone wishing a job would be provided one， the likely result would be ______．A．massive layoffsB．an increase in the money supplyC．an increase in inflationary expectationsD．the development of a barter system转贴于 265考试网 http：//www．265ks．com/16．Given $100 000 to invest， what is the expected risk premium in dollars of investing in equities versus risk－free T－bills（U．S．Treasury bills） based on the following table? ______．Action Probability Expected ReturnInvest in equities0．6$50 OOP0．4－$30000Invest in risk－free T－bill1．0$5000A．$20000B．$18000C．$15000D．$1300017．Economists assume that most people take risks ______．A．because doing so is excitingB．only when they have no riskless alternativeC．very infrequentlyD．if they are compensated for taking the risks18．The Phillips Curve shows the relationship between ______．A．aggregate demand and aggregate supplyB．interest rates and inflationC．recessions and boomsD．inflation and the unemployment rate19．In a fixed exchange rate system， speculative selling of a currency is based on anticipation of ______．A．appreciationB．devaluationC．a foreign trade surplusD．interest rate increase20．A collecting bank is employed by ______．A．the principalB．the remitting bankC．the drawerD．the drawee， who is its customer21．The following statements describing net income are all correct except that ______．A．net income is computed in the income statement， appears in the statement of owner’s equity， and increases owne r’s equity in the balance sheetB．net income is equal to revenues minus expensesC．net income is computed in the income statement， appears in the statement of owner’s equity， and increases the amount of cash shown in the balance sheetD．net income can be determined using the account balances appearing in an adjusted trial balance22．A strong dollar encourages ______．A．travel to the United States by foreignersB．purchase of American goods by foreignersC．Americans to travel abroadD．Americans to save dollars23．In what circumstances would the beneficiary of a confirmed documentary credit not receive payment? ______．A．Failure of the applicantB．Failure of the issuing bankC．Failure to fulfil the credit termsD．Failure to fulfil the commercial contract24．The balance in the owner’s capital account of ABC Co．Ltd．at the beginning of the year was $65 000．During the year， the company earned revenue of $430 000 and incurred expenses of $360 000， the owner withdrew $50 000 in assets， and the balance of the Cash account increased by $10 000．At year－end，the company’s net income and the year－end balance in the owner’s capital account were， respectively ______．A．$20 000 and $95 000B．$70 000 and $95 000C．$70 000 and $85 000D．$60 000 and $75 00025．Assume the inflation rate is expected to be 5 percent and the unemployment rate is 8 percent．If workers wish to get a 2 percent real wage increase， they should bargain for a money wage increase of ______．A．3 percentB．5 percentC．7 percentD．13 percent26．Which statement about portfolio diversification is correct? ______．A．Proper diversification can reduce or eliminate systematic riskB．As more securities are added to a portfolio， total risk typically would be expected to fall at a decreasing rateC．The risk－reducing benefits of diversification do not occur meaningfully until at least 30 individual securities are included in the portfolioD．Diversification reduces the portfolio’s expected return because it reduces a por tfolio’s total risk27．Your customer is the applicant for a documentary credit．Which of the following points would appear to be illogical if they appeared on the application form? ______．A．Invoice price shown as FOB， bills of lading to be marked freight paidB．Last date for shipment one week before expiry dateC．Invoice price shown as C&F， but no insurance document requestedD．No mention of the latest date of shipment28．Portfolio theory as described by Markowitz is most concerned with ______．A．the effect of diversification on portfolio riskB．the elimination of systematic riskC．active portfolio management to enhance returnD．the identification of unsystematic risk29．Commercial bank deposits with the central bank are part of the ban k’s ______．A．net worthB．demand depositsC．loan portfolioD．reserves30．Foreign trade can be conducted on the following terms except for ______．A．open accountB．documentary collectionC．documentary creditsD．public bonds31．risk for a security held in a diversified portfolio is ______．A．specific riskB．standard deviation of returnsC．reinvestment riskD．covariance32．The security market line depicts ______．A．a security’s expected return as a function of its systematic risk B．the market portfolio as the optimal portfolio of risky securitiesC．the relationship between a security’s return and the return on an indexD．the complete portfolio as a combination of the market portfolio and the risk－free asset33．The key factor limiting how much a commercial bank has immediately available to lend is the amount of its ______．A．demand depositsB．excess reservesC．vault cashD．savings deposits34．A description of the current international monetary system is as follows：______．A．a free－floating systemB．all currencies are pegged （fixed in price） to another currency or to a basket （group） of currenciesC．some currencies are pegged and some float， but few remain fixed at the same rate for very longD．all currencies float within an agreed upon range of one another35．In a standard spot exchange transaction， a Thursday deal is settled on _____ if the day is a business day of banks．A．FridayB．SaturdayC．the following MondayD．the following Tuesday36．Open market operations are ______．A．the tool used most often by the central bankB．seldom used by the central bankC．used more than the discount rate but not nearly as often as changes in reserve requirements by the central bankD．used by the central bank only during inflationary periods37．Given US interest rates at 2．00% and Japanese interest rates at 1．00% for the same period， where would the Interest Rate Parity Theory expect the USD/JPY exchange rate most likely to trend toward given a current spot exchange rate of 134．00? ______．A．135．00B．134．00C．132．00D．It cannot be determined38．On October 1， 2000， ABC Co．Ltd．loaned XYZ Store $300 000，receiving in exchange a nine－month， 12% note receivable．ABC ends its fiscal year on December 31， and makes adjusting entries to accrue interest earned on all notes receivable．The interest earned on the note receivable from XYZ during 2001 will amount to ______．A．$9000B．$18000C．$27000D．$3600039．In terms of daily volume， ______ is the largest traded financial market in the world．A．the stock marketB．the mutual fund marketC．the bond marketD．the foreign exchange market40．Which of the following practices contributes to efficient cash management? ______．A．Never borrow money—maintain a cash balance sufficient to make all necessary paymentsB．Record all cash receipts and cash payments at the end of the month when reconciling the bank statementsC．Prepare monthly forecasts of planned cash receipts， payments，and anticipated cash balances up to a year in advanceD．Pay each bill as soon as the invoice arrives41．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 curr ency48．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 bankFECT指定教材：震撼推出：FECT指定教材《现代金融业务》第二版电子书下载（经济科学出版社）!震撼推出：FECT教材电子版免费下载《现代金融业务清晰版》-中国金融出版社FECT教材配套必备手册：FECT《现代金融业务学习手册》电子版，震撼下载！FECT教材配套必备习题：FECT《金融专业英语证书考试全真模拟试题集》初级（第二版）震撼下载：2012 FECT最新官方内部模拟题5套FECT历年真题：FECT历年真题（Word版）FECT综合七套真题（99年至07年）PDF下载版本FECT推荐词典：FECT金融英语词典FECT听力：震撼推出：2012 FECT金融专业英语证书考试听力初级MP3附PDF文本（银行综合类）FECT金融英语全真模拟听力.MP3下载超给力5集金融专业英语听力MP3下载，附文档！！！超给力5集金融专业英语听力MP3下载，附文档！！！FECT词汇：金融英语综合：财务英语词汇大全！金融词汇WORD可打印版，吐血推荐！金融英语专业词汇全解财务英语基础词汇表其他经济金融类英语资料推荐：《The Economist》《经济学人》100篇（中英版）EnglishDigest 英语文摘2012年2月刊（免费下载！）[经典下载]《实用会计英语》高平阳（PDF完全版）[下载]CPA会计英语教学课件（1-10全集）[会计考试丛书]《会计英语导航》PDF网络完美版。

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以下是为大家搜索的金融英语辅导练习题，希望能给大家带来帮助!更多精彩内容请及时关注我们!Interest on Lawyers’ Trust Aounts IOLTAs, are offered to lawyers and firms to ply with the handling of funds being held in trust on behalf of clients. Interest earned on these aounts will be paid to the Texas Equal Aess to Justice Foundation.1. Aounts 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 aount to earn interest for the month. Interestwill be credited to the aount on the first of each month before being withdrawn and remitted to the Texas Equal Aess to Justice Foundation.3. A maximum of $10.00 handling/service charge per aount will be deducted from the aumulation of all interest paid on this type of aount.4. All other terms, conditions and fees apply aording to the Membership and Aount Agreement, Truth-In-Savings Rate and Fee Schedule and Funds Availability Policy Disclosure.51. IOLTAs must be opened with a minimum deposit.A. RightB.WrongC.Doesn’t say52. No minimum balance is required for this aount to earn interest for the month.A. RightB. WrongC. Doesn’t say53. Interest on Lawyers’ Trust Aounts, are offered t o lawyers and firms toply with the handing of funds being held in trust on behalf of clients.A. RightB. WrongC. Doesn’t say54. IOLTAs’ main clients are aounters.A. RightB. WrongC. Doesn’t say。

Answers for Part 2Section A1-5 C B B D A 6-10 C D D B D11-15 D C D B CSection B16. 储备银行必须将其权力用于维护健全有效的金融体系，避免一家注册银行的倒闭对金融体系造成的巨大伤害。

17. 我们监管银行因为我们知道存在一些与某个大银行或银行集团倒闭相关的外部因素。

单个的银行倒闭可能会引发其他的失败。

这是因为好的银行的存款者在看到一个信誉不好的银行倒闭时会提走他们在好银行的存款。

18. 在资本金没有恢复到最低要求前，银行不能给股东分红。

同时相关资产规模也不能扩张，而且如果一级资本低于3%，该银行的信用总量也不能扩张。

19. 委员会相信，对银行来说，运用必要的力量（或资源）来度量操作风险水平以及将它们并入银行全部资本充足率的评价中是非常重要的。

委员会建议针对其他风险发展一套明确的资本要求，并且正在研究使之付诸实践的方法和途径。

20. 资产质量评级反映与贷款及各种投资组合、其他不动产、其他资产、表外业务等相关的信用风险（包括现在和潜在的）状况。

21. 在对金融机构资产流动性进行评估时，应考虑如下因素：相对于资金需求而言，流动资产目前水平和未来渠道，机构规模、业务复杂程度和风险状况一定情况下的资金管理水平。

22. 非现场评价是基于如下方面的：交谈市场情况、现场检查、媒体的报道、国际评级机构、定期回馈、和内外部审计者谈话，收取审计报告、和银行管理当局谈话、国外监管者等。

23. 货币监理署（OCC）的监管理念包括评估风险和确保个体银行在问题损害其安全和稳健之前即采取纠正措施。

这种监管理念体现在OCC的风险监管规划里。

24. 德国人编造了一个新词---金融一体化（Allfinanz），意思是把银行业和保险业以及其他的零售服务业结合起来，但是他们的银行和保险商却在具体实施中落在了欧洲竞争对手的后面。

Section C25-30 C C B B A CSection D31-35 top most revenue bear sound36-40 ratios set due regarding fashionSection E41-45 D B C B B46-50 B C A D A。

2011年金融英语考试阅读理解模拟试题及答案（英语学习）*North China’s Tianjin Municipality（直辖市）has started a “Blue Sky Project” to control the air pollution．Under the project requirements，the air quality in Tianjin is expected to measure up to the national standard by 2007，when two thirds of days in the year will enjoy fairly good or excellent air quality．In order to achieve the goal，Tianjin will take a series of measures such as controlling the use of coal，reducing the dust floating from construction sites，planting trees along the major streets，and replacing petrol with liquid natural gas as the fuel for vehicles．Since people paid little attention to the environmental protection，the air quality in Tianjin has worsened during the past decade．The project has received wide praise and support from the natives．*The newly－discovered “Great Wall” in south China’s Hunan ProvincNE－HEe will open to visitors in the near future．“We will try to make it an internationally famous attraction for tourists，”said Y uan Xinhua，director of the Hunan Provincial Tourism Administration（管理局）．The main part of the 190－km “Southern China Great Wall” is located in Fenghuang County in western Hunan．Built during the Ming Dynasty（1368—1644）by the local Miao minority people，the Southern China Great Wall is 2．3 m high and 1．7 m wide．*The Chinese have been enjoying themselves by sightseeing or travelingduring the Spring Festival this year rather than engaging in the traditional gathering of relatives and friends at home．In the past five days，over 200 000 Beijingers spent the one－week Spring Festival holiday shopping in Tianjin．Low prices of consumer（消费）goods and the convenient railway service enable Beijingers to visit the neighboring city during the day．Meanwhile unlike previous years，an increasing number of Tianjiners went to Beijing during the Spring Festival to visit places of interest in the capital．Tourism had been heating up in the last few years．An increase in income and longer holidays have made it possible for Chinese to relax after a year of work．1．If “Blue Sky Project” is completed ________．A．there will be no air pollution in TianjinB．the natives can enjoy good air quality most of the yearC．liquid natural gas will have taken the place of coal and petroD．people will pay less attention to environmental protection2．According to Mr．Yuan from Hunan，the opening of the SouthernChina Great Wall is a good way to ________．A．rebuild the wallB．help local Miao minority peopleC．discover the historyD．arouse foreigners’interest3．The Chinese would like to go sightseeing or travel during the Spring Festival this year mainly because ________．A．prices are higher in their native placesB．railway service is getting better and betterC．they are tired of meeting relatives and friends at homeD．they have longer holidays and more money【答案与解析】本文介绍了国家的三个不同方面的建设计划项目。

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。