对外经济贸易大学
2000-2001学年第一学期
ENG353《金融英语阅读》期末考试试卷（A）
本试卷适用于：全校三年级各专业的学生（99级）学号：姓名：
班级：成绩：
1.Translate the following financial terms.(20%)
1)IDA
2)SDR
3)IFC
4)OECD
5)Clipping
6)Laissez-faire
7)Debasement
8)MIGA
9)Convertible paper money
10)in arrears
1)扶贫(工作)
2)"大一统"银行系统
3)垂直管理体制
4)霸权
5)金本位制崩溃
6)互惠主义
7)银根紧缩
8)差别价格
9)收益差
10)空头交易
2.Paraphrase the underlined words in English according to the text. (15%)
1)The IFC's policy is to favor joint ventures that have some local capital committed at the outset, or at least the probability of local capital involvement in the foreseeable future.
2)To date, there have been no defaults on loans made by the World Bank.
3)Rugged individualistic liberalism based upon Anglo-Saxon roots knew, rendering their liberal ideology rigid and dogmatic.
4)The value of a commodity or token used as money also fluctuates, and when there is inflation, its value persistently falls.
5)They put their reputation on the line when they endorse a company's report.
3．Please translate the following sentences into either Chinese or English (20%) 1)The "whole earth" approach to political economy--a world view--remains the
exception and not the rule. Economists note that their discipline was traditionally called "political economy," the queen of the social sciences dating back at least to Adam Smith's Wealth of Nations, published in 1776.
2)Barter can take place only when there is a double coincidence of wants. A double
coincidence of wants is a situation that occurs when person A wants to buy what person B is selling and person B wants to buy what person A is selling.
3)政府对国际贸易中的小汽车和多数其它商品进行调控。他们对进口征收税款，
称为关税，同时建立配额制，以对可能进口的数量进行限制。
4)货币是为人们广为接受的，作为商品和服务支付手段的任何商品或辅币，货
币有四种职能：交换媒介、价值尺度、储藏手段、延期支付手段。
4．Please fill in the following blanks with ONE appropriate word in each blank. (15%)
The balance of _____________ is a statistical record of ______________ the economic transactions between residents of the reporting country _______________ residents of the rest of the world during a given __________ period. The usual reporting period ____________ all the statistics included in the account is one year.______________, some of the statistics that make ____________ the balance of
payments are published _____________ a more regular monthly and quarterly basis. Without _____________ the balance of payments is one of the ___________ important statistical statements for any country. It reveals how many goods and ___________ the country has been exporting and ____________ and whether the country has been _____________ from or lending money to the rest of the world. ____________ addition, whether or ___________ the central monetary authority (usually the central bank) has added to or reduced its reserves of foreign currency is reported in the statistics.
5. Please read the following 2 articles and briefly answer the questions given. (20%).
Article 1
Compared with the central banks of some other countries, the Federal Reserve System of the United States which has a history of only about 80 years, is relatively young. The “Federal Reserve Act” passed by American Congress in 1913 aims at providing a relatively secure and flexible banking and monetary system. Today, the Federal Reserve System is an institution with regional dispersion. In terms of ownership and control, there are representatives of government interests as well as private interests. This is a recognition of a long-standing conviction: the participation of private sector is essential to the creditability and management of the Central Bank.
Currently, the Board of Governors of the Federal Reserve System consists of seven members, appointed by the President, subject to Senate approval. Each member must come from a different geographical region.
In order to maintain a balance between central supervision in Washington and participation of various regions as well as private sector, Congress established 12 regional Federal Reserve Bank, each providing service for a geographical region. As an independent institutional entity, the regional bank, with a board of directors and member banks as shareholders, is an important aspect of the Federal Reserve Act. There are three basic functions for the central bank:
Firstly, the responsibility of the central bank is the formulation and execution of monetary policy, with the twin goals of promotion of price stability at home and stimulation of genuine growth of economy. These goals are still be the core of central bank policies.
Another important responsibility of a central bank is the supervision or participation in supervision, to a certain degree, of the member banks and financial institutions. A sound banking and financial structure is crucial to an effective monetary policy. Confidence in the health and soundness of the banking and financial system will facilitate the mobilization of social savings which, in turn, will be used in productive investment, thus promoting economic growth.
The third major function of the central bank is the supervision of the clearing mechanism. A reliable clearing mechanism which can settle inter-bank transaction with high efficiency is crucial to a well-operated financial system.
Why does it matter whether there is certain degree of independence for a central bank?
Generally speaking, the greater the independence of the central bank, the less likely it will become the target of short-term political pressure. The central bank under direct regular government control seems inevitable to carry out a relaxed credit policy, especially at a time of approaching election. What is even worse, it directly provides capital to cover the government’s deficit.
Although these policies may be remedy to the critical situation of some short-term problems, they will in the end produce an upward swing of inflation and lead to an inevitable tightening of credit in the future. Independence is also conducive to the central bank in its execution of the supervisory responsibility and makes it possible for the central bank to resist the pressure for relaxing or tightening regulation standard, depending on in which direction the political wind blows.
1)Please translate the underlined parts of the second paragraph into Chinese.
Today, the Federal Reserve System is an institution with regional dispersion. In terms of ownership and control, there are representatives of government interests as well as private interests.
2)What is the significance of setting up the regional banks?
3)What is the most important part in the central bank’s policies?
4)Can you use another proper word or term to replace the underlined word “clearing” in the 8th paragraph?
5)According to the text, why is independence so important for the central bank? Article 2
Recessions are deflationary events. They open up a gap between aggregate supply and demand that both reduces cost pressures and curtails pricing leverage. The outcome usually takes the form of a cyclical disinflation---a temporary easing in the inflation rate that then begins to reverse itself in the subsequent recovery. Deflation is the extreme of disinflation. It represents the rare occurrence of an outright contraction in the aggregate level—a lethal result for the real economy and financial markets. Unfortunately, that’s where the risks now lie. There is a growing chance, in my view, that both the world and the US economy could experience a whiff of deflation over the next couple of years.
The world is not exactly lacking in modern–day examples of deflation. That’s especially the case in Asia, which accounts for about one-third of global output. The price level in Japan, the second largest economy in the world, has contracted in five of the past six years. Our latest forecast calls for at least another two-year of Japanese deflation over the 2001-2 interval, with that nation’s CPI projected to fall at a 1.1% average rate over that interval. Greater China, increasingly the price setter at the margin for Asia ex Japan, has also had a brush with deflation. For the PRC, the CPI
declined by an average of about 1% in both 1998 and 1999 and, at present, is barely hovering in positive territory--+1.0% in August 2001. Hong Kong is in the midst of its third consecutive year of deflation, and our latest estimates call for an increase of just 0.3% in the aggregate Taiwanese price level in 2001. At the same time, Singapore, which had a whiff of deflation in 1998, saw its CPI slow to a 29-month low of 0.5% in September 2001.
Outside of Asia, deflation is the exception—not the rule. One of those exceptions is Argentina, which is in the midst of a third consecutive year of outright deflation. Another exception could well be the United States. Two reasons come to mind—the first being the impacts of the business cycle. Downside risks to inflation are not arrested when recessions are over. Indeed, policy stimulus or not, deflationary pressures typically intensify well into the first year of economic recovery. Over the past seven business cycles, the chain-weighted GDP price index slowed from an average of 4.4% in the year prior to recession to 2.9% in the year following recession. That means the typical recession has knocked an average of 1.5 percentage points off the US inflation rate. Applying this norm—1.5 percentage points of disinflation—to the current pre-recession trend of 2.3% inflation in the year ending 2001 would produce a 0.8% inflation rate in the year following this downturn. To be sure, this mechanistic rule of thumb simplifies a very complex story and masks a good deal of variability in disinflation cycles of the past. But with the US economy entering this recession with a very low inflation rate, a surprisingly close call with deflation could well be in the cards for the United States at some point over the next couple of years.
A second, and perhaps more important reason to worry about US deflation is the legacy of America’s popped asset bubble. In the rush to focus on the recessionary shock of 11 September, financial market are losing sight of what I continue to believe is the single most disruptive macro force in the US economy—the excesses associated with the Nasdaq bubble. The capacity overhang is a case in point. In earlier boom-bust capital spending cycles, the business fixed investment share of GDP went from more than 13% down to about 10%. In the current instance, this share has gone from around 13% to just 11.9% in 2001. That means businesses might be only about half way through the pruning of excess investment. Lingering investment excesses are a classic manifestation of an overhang of aggregate supply that puts ongoing pressure on the overall price level. The same is true of the excesses of household debt, the shortfall of personal saving, and a massive current account deficit. They all speak of a US economy that lived beyond its means as the asset bubble expanded. Now that the bubble has popped, a purging of those excesses is in order—an outcome that has the potential to trigger a lingering series of deflationary after shocks on the demand side of the equation as well. Just ask Japan.
Questions:
1.What are the differences among inflation, disinflation and deflation?
2.What does the writer think of the present economical situation of the United States?
Why does he think so?
3.Which Asian countries determine the price in this area?
4.Is deflation a widespread phenomenon in the American continent? Why or why
not?
5.What does the sentence “a surprisingly close call with deflation could well be in
the cards for the United States at some point over the next couple of years.”
Mean?
6. Please summarize the following article in no more than 120 words (10%) European finance officials fear they may have underestimated how many euro coins will be needed in the first days of next year - and there are also doubts about whether they will all be effectively distributed.
Indeed, while notes represent the security risk as the euro completes its transformation from abstract currency to hard cash, in many ways it is the coins that are the real headache.
The problem is threefold. Shipping coins is an arduous task because there are so many of them and they weigh so much - more than 50bn across the eurozone, weighing up to 8.5 grams apiece.
Putting them into the pockets and purses of people is also difficult. While almost everyone will get notes from automatic cash dispensers, the distribution of coins largely rests on getting hold of special kits and being handed the right change from often poorly-trained retailers - even for purchases paid for in the old "legacy" currencies.
All that is complicated by the final problem - no one really knows how many coins people will want. The difficulty is that while many people keep stashes of notes hidden away - now being returned to the banks, with a consequent drop in the amount of cash in circulation - the proportion of coins left dormant is even greater.
The French government estimates that the number of coins the country uses to buy things on a day-to-day basis is 2.5bn. But the total number in circulation is anything between 6bn to 8bn, the discrepancy accounted for by piles of unused coins on shelves, in piggy banks and down the sides of sofas.
Hence the uncertainty over how many coins people feel they will need. In response, the French have increased the initial distribution of coins from 3.5bn to more than 5bn. Eventually they plan to circulate 6.5bn. Similarly, Belgium has upped the number of "minikit" collections of coins that will be the easiest way for people to get their hands on the new currency. The country had initially planned to issue 4m minikits - about
one for each household. It is now making 5.5m available.
The Belgian government compliments itself that it has distributed two-thirds of the coins it needs to, but in France the task is made more difficult by the threat of strike action. Bank of France workers plan to strike on December 14, just as packs of the coins should become available to the public, while private sector bank employees threaten a strike on January 2, the first business day after the changeover.
In the wake of a blockade by workers at one mint, Laurent Fabius, France's finance minister, admitted last week to a "slight delay" in sending out coins to supermarkets, but says it will be resolved by December 15.
He even brushes aside worries about scarcity in the early days of next year. "If there aren't enough coins, that's not necessarily negative," he said. "Obviously people will pay in euros from January 1, but they can also go on paying in francs." But not indefinitely: French franc notes and coins will stop being legal tender on February 17.
对外经济贸易大学
2000-2001学年第一学期
ENG353《金融英语阅读》期末考试（A）卷参考答案本试卷适用于：全校三年级各专业学生（99级）
1.Translate the following financial terms.(20%)
1)国际开发协会
2)特别提款权
3)国际金融公司
4)经济合作与发展组织
5)减轻重量
6)自由放任
7)降低成色
8)多边投资担保协会
9)可兑换纸币
10)拖欠
1)poverty alleviation
2)all-in-one banking system
3)centralized organizational network
4)hegemony
5)crash of gold standard
6)reciprocity
7)austerity
8)differential price
9)spread
10)bear transaction
2.Paraphrase the underlined words in English according to the text. (15%) 1)Favor: help, give favor to
Committed: invested
Outset: beginning
In the foreseeable future: in the later time which can be predicted
2)To date: up to now
Default: failure to pay
3)Rugged: rough
Rendering: making
Rigid: tough
Dogmatic: that claims or suggests that sth is true without taking account of evidence or other opinions.
4)Fluctuate: rise and fall
Persistently: constantly
5)They put their reputation at risk when they sign their names on a company’s report.
3．Please translate the following sentences into either Chinese or English (20%)
1)一种世界性的观点认为：整个地球进入政治经济，这只是一种看法，而不是
普遍规律。经济学家注意到他们的学科传统上被称为“政治经济学”，作为社会科学之女王，时间至少可以追溯到1776年亚当斯密的《国富论》的出版。
2)直接的物物交换只有在双方的需求碰巧一致时才能发生，双方需求一致是指
当甲想要买乙所出售的商品时，乙恰好也想要买甲所出售的商品的情况。
3)Governments regulate international trade in cars and in most other commodities.
They impose taxes on imports, called tariffs, and also establish quotas, which restrict the quantities that may be imported.
4)Money is any commodity or token that is generally acceptable as a means of
payment for goods and services. Money has four functions: medium of exchange, unit of account, store of value and standard of deferred payment.
4．Please fill in the following blanks with ONE appropriate word in each blank. (15%)
The balance of __payments_______ is a statistical record of __all______ the economic transactions between residents of the reporting country __and_______ residents of the rest of the world during a given ____time_____ period. The usual reporting period ____for____ all the statistics included in the account is one year. ____However______, some of the statistics that make ___up______ the balance of payments are published ____on_____ a more regular monthly and quarterly basis.
Without ____question_____ the balance of payments is one of the _____most____ important statistical statements for any country. It reveals how many goods and ___services______ the country has been exporting and __importing_______ and whether the country has been ___borrowing______ from or lending money to the rest of the world. ____In_____ addition, whether or _not_______ the central monetary authority (usually the central bank) has added to or reduced its reserves of foreign currency is reported in the statistics.
5. Please read the following 2 articles and briefly answer the questions given. (20%).
Article 1
1)Please translate the underlined parts of the second paragraph into Chinese.
现在，联邦储备体系是一个拥有区域分支银行的机构。在所有权和控制方面，有政府利益和个人利益的代表组织。
2)What is the significance of setting up the regional banks?
In order to maintain a balance between central supervision in Washington and participation of various regions as well as private sector
3)What is the most important part in the central bank’s policies?
the twin goals of promotion of price stability at home and stimulation of genuine growth of economy
4)Can you use another proper word or term to replace the underlined word “clearing” in the 8th paragraph?
Settlement
5)According to the text, why is independence so important for the central bank?
the greater the independence of the central bank, the less likely it will become the target of short-term political pressure.
Article 2
Questions:
1.What are the differences among inflation, disinflation and deflation?
?Inflation refers to the rise in prices resulting from an increase in the supply of money, credit, etc.
?Disinflation refers to the lessening of inflation through increasing taxes and reducing money supply.
?Deflation refers to the reduction in the amount of money in circulation in (an economy), in order to lower prices or keep them steady.
2.What does the writer think of the present economical situation of the United States?
Why does he think so?
The present economic situation is popped asset bubble. Because at present businesses might be only about half way through the pruning of excess investment, and there are the excesses of household debt, the shortfall of personal saving, and a massive current account deficit.
3.Which Asian countries determine the price in this area?
The PRC.
4.Is deflation a widespread phenomenon in the American continent? Why or why
not?
No.
5.What does the sentence “a surprisingly close call with deflation could well be in
the cards for the United States at some point over the next couple of years.”
Mean?
It means that the US will be at the risk of experiencing deflation sometime in the next couple of years.
6. Please summarize the following article in no more than 120 words (10%)(答案略)
对外经济贸易大学
2002-2003学年第一学期
ENG323《金融英语阅读》期末考试试卷（A）
本试卷适用于：全校三年级各专业学生（00级）
学号：姓名：
班级：成绩：
I．Translate the following terms. (15%)
1．有价证券
2．铸币平价
3．浮动利率
4．到期日
5．可兑换纸币
6．大一统的
7．银根紧缩
8．Commission
9．treasury bill
10．Creditor
11．Default
12．discount house
13．Debasement
14．Barter
15．fiscal deficit
II. Paraphrase the underlined sentences in English. (15%)
1.Despite the fact that devaluations occurred and speculative capital flows were
significant, the Bretton Woods arrangements deterred currency substitution so long as the commitment to fix the exchange rates was accepted.
2.The lack of incentive to engage in currency substitution was witnessed by the fact
that the small deviations from mint parity were offset exactly by the costs of transporting the gold between countries.
3.They generally are not appropriate for risk-averse individuals or investors with
short planning horizons.
4.Some UK stocks have bid-ask spreads of 10%.
III. Translate the following sentences. (20%)
1. The control which financial institutions wield over very substantial sums of money also attracts the attention of governments, partly because they may see irresistible opportunities to secure cheap finance for favored borrowers, and partly in view of the economic power attached to control of finance.
2. Most people experience difficulty in spotting whether the lines are switching around so that sometimes the series being forecast is the leading series.
3. If the total par value of the stock issued in the combination is large enough, the dashed boundary shifts downward past additional paid-in capital; the total additional paid-in capital of the combined company is eliminated, and combined retained earning is reduced.
4. Nevertheless, Smith’s classical tenets of economic liberalism—that minimal state interference in the economy and maximum reliance upon the market result in business productivity and social wealth—still predominate in Anglo-Saxon cultures today.
5. 收集的有关一国或一个项目的财务状况、资金使用、经营能力等方面的信息，比起一个私营的外国企业可能得到的信息，会更为完整和准确。
6. 一些懒人很可能会发现他们已被更有能力的经理所替代了。这种竞争可能会发生在企业之中，但那些经营糟糕的公司更可能被全盘收购，这种形式的接管通常都能带来一支更有活力的管理团队。
IV. Fill in the blanks according to what you have learnt in the textbook. (10%) PBC maintained, as of end-1996, 2450 subordinate establishments. Under the ( ) ( ) banking system, which lasted until 1978, PBC engaged in both central banking and ( ) banking operations. During the course of the reform and opening up, some specialized banks and financial institutions were established or restored and took ( ) part of macroeconomic management, the State Council made a decision in 1984 for PBC to ( ) as a central bank. Following this decision, a central banking system began to ( ) shape. However, PBC’s ( ) toward a full-fledged central bank turned out to be a long process. The
financial sector reform in China ( ) a new phase in the latter half of 1993 when the State Council Decision on Financial Reform defined the PBC’s key functions as: to formulate and ( ) monetary policy so as to maintain the ( ) of the currency; and to exercise firm supervision over the financial institutions to ensure the safe and effective functioning of the financial system.
V. Read the following passages and answer the questions. (40%)
1. About one commercial bank out of every four has a trust department that provides specialized fiduciary①services for its customers. To engage in the trust business, a bank must obtain from its chartering agency trust powers that enable it to offer these specialized financial services. The following sections provide an introduction to the trust functions.
With roughly 75 percent of banking-industry participants not engaged in trust operations, trust services obviously play a somewhat limited role in the industry. Since 1981 the percentage contribution of these revenues②to total operating income and total assets has been increasing after declining③since 1975. as of year end 1983, trust income was $4.2 billion and amounted to④ 1.74 percent of total operating income and 0.185 percent of total bank assets. Over the eight-year period from 1975 to 1983, trust income grew at a compound annual rate of 12.78 percent compared to 17.42 percent for total operating income and 11.81 percent for total assets.
Trust departments generate revenue by charging fees for the services they provide. In the early days of the trust business, these fees usually were calculated as a percentage of income earned from trust assets. Today, most fee income is based upon principal value or a combination of principal value and income. To illustrate, a fee schedule based upon principal value for personal trust accounts might range from 1 percent to 25 percent annually, depending upon the size of the account. One of the controversial areas in trust management is how to measure fee income.
The top ten trust revenue producers in the banking industry are listed in Table 14.1 (omitted). During 1983, total trust revenues for this group increased by 19 percent from $979 million to $1,161 million. The top revenue generator is J.P. Morgan & Co. Inc. with total income of $218 million. Bank of New York was a distant second with $145 million in revenue. The 1983 revenue for the top ten banks ($1161 million) represent 28 percent of the industry’s trust income ($4192 million). With some 4,000 trust departments in the industry, this leaves slightly more than $3 billion for the remaining 3,999 departments or roughly $750,000 in revenue per department.
Bank trust department and trust companies perform numerous fiduciary services for individuals and business. The major functional areas are 1) trusts, 2) estates, and 3) agencies. A trust is a fiduciary relationship with respect to property in which the trustee, who has title to the property, must perform equitable⑤duties for the benefits of another person (the beneficiary). The settlement, guardianship, and conservatorship of estates—assets of deceased persons—also are handled by trust departments. An agency is a contractual agreement in which the agent (trust department) is contracted to act on behalf of another person (the principal). In an agency, title to the property normally does not pass to the agent but remains with the principal (owner). Trusts and
agencies are more important than estates in generating assets for trust departments. The service objectives of trust and agency relationships involve five major operations: 1) recordkeeping, 2) safekeeping 3) personal and financial counseling, 4) investing, and 5) control of assets.
Personal trusts and employee-benefit accounts are the major business lines of trust departments, as of December 31, 1980, these two lines accounted for $440 billion or 77 percent of total trust assets of $571 billion. In each of the major business lines, common stocks are the major investment vehicle, as they account for roughly 48 percent or total trust assets. Personal trusts have the highest proportion of assets in common stocks at 56 percent.
The 4,054 trust departments represented in Table 4.2 (omitted) were responsible for managing 1,401,540 accounts in 1980, an average of almost 346 accounts per department. With total trust assets of $571 billion, the average size account was approximately $400,000. the banks behind these trust operations controlled $1,228 billion in total assets or roughly 66 percent of total industry assets. The size of the average bank with trust operations is approximately $300 million, roughly ten times greater than the average-size bank. These figures help explain why not all banks offer trust services. First, with the average size trust account close to half a million dollars, a relatively large and sophisticated market demand is required to justify a trust operation. And second, a trust department is a highly specialized operation with high fixed cost, which requires a large asset base to support it. Thus, to support an economically viable⑥ trust department, a bank must have a relatively large asset base and/or substantial market demand. Banks that lack these requirements should obtain trust services from a correspondence bank rather than support an unprofitable trust operation. However, in an attempt to be “full service” institutions, some banks may provide trust services at a loss.
1) Paraphrase the 6 underlined words (from ① to ⑥in English) (6 marks)
2) Decide whether the following statements are true or false. (14 marks)
a)Most of small-sized banks usually have a trust department.
b) A trust department is a specialized operation with low fixed costs.
c)Some bank may provide trust services at a loss.
d)In order to support a trust department a bank must have a relatively large asset
base and/or substantial market demand.
e)In each of the two major business lines of trust departments during 1980,
common stocks are the major investment vehicle.
f)During 1970s, personal trusts and estates accounts are the major business
lines of trust departments.
g)Trust departments generate revenue by charging fees for the services they
provide.
2. As Latin American governments are finding, budget stability is hard to achieve—and harder still to maintain.
In both Brasilia and Buenos Aires, the reform of government finances has been in the news lately. In Argentina the prospects are surprisingly good. On February 7th the lower house of Congress passed two laws—one on tax, the other on public-sector reform—to boost the government’s ability to raise revenue and cut spending. The upper house passed the public-sector bill this week; the tax bill should pass soon and the government will be a step closer to its goal of a balanced budget in 1996.
Brazil’s outlook is gloomier. The public sector’s “operational” budget balance (ie, excluding the effects of inflation on government debt) slid from a surplus of 1.8% of GDP in 1994 to a deficit of over 4% last year. Moreover, laws to strengthen the budget, such as a new social security law and reform of public administration, are going through the legislature at a similar pace.
One conclusion to draw is that Argentina’s public finances are in better shape than Brazil’s. Another is that Argentina’s president, Carlos Menem, has the political clout to push through tough measures. But the tax bill was sorely needed: without it, the 1996 budget would have been wholly unrealistic, because the original budget made heroic assumptions about improving tax compliance.
The public-sector reform law, however, will matter more in the long run. It allows the government to merge, reorganize or shut down redundant state agencies, and to privatize any company still in state hands. Such powers make big future spending cuts possible, and may help to keep the budget balanced when privatization revenues run out and debt payment rise.
The position of Brazil’s president, Fermamdo Henrique Carloso, could not be more different. The main reason for last year’s fiscal mess was that spending, especially on pay, exploded. The central government’s wage bill rose by 16% in real terms last year, and now absorbs 45% of all revenues. At the level of the states the situation is even worse. Yet the constitution virtually rules out the dismissal of public employees. Hence the urgent need for Mr. Cardoso to push through amendments.
Gaining and maintaining fiscal stability is important for all governments—but especially in Latin America. The region’s history of chronic inflation stems directly from government profligacy. And many of the recent improvements in budget balances were helped by privatizations, many of which bring only one-off windfall. Moreover, dependence on foreign capital makes fiscal prudence even more crucial. As Argentina found last year, foreign money can vanish with remarkable speed.
But fiscal success requires several things. So far, most progress has come from individual policies—such as cutting spending or raising taxes. Mexico’s solutions are also being attempted—witness Mr. Menem’s new law and Mr Cardoso’s proposed constitutional reforms. Profligate provincial governments, too are being reined in. However, another means of improvement, so far less common in the region, is the reform of budgetary institutions themselves. These are the sets of rules, procedures and practices under which budgets are drafted—approved and implemented. The idea of clear rules surrounding budgetary policy is not new—New Zealand, for instance,
has them. But it is now being touted seriously for Latin America. In a recent study, Ricardo Hausmann and Ernesto Stein of the Inter-American Development Bank show that those Latin American countries with stronger budgetary institutions shave had healthier public accounts.
They go on to suggest a lot of ways in which budgetary institutions could be strengthened. A non-political national debt board, for instance, could set overall limits on how much debt the government could take on. Improved transparency and procedural rules on budget drafting could ensure that budget projections are realistic and that there are no hidden expenditures lurking behind the official figures. A formal analysis of the medium-term impact of any spending proposals could ensure that budgets were planned more than a year ahead.
In a region with such a tradition of slack fiscal policy, the idea of strengthening budget institutions sounds attractive. It would mean, for instance, that continued fiscal stability depended less on the clout of individual politicians. For this reason, Latin American countries seriously committed to long-term fiscal stability would be well advised to take these ideas seriously.
Questions to be answered:
1)What are the main reasons for fiscal mess in Brazil? (10%)
2) What does fiscal stability/success require according to the passage? (10%)
对外经济贸易大学
2002-2003学年第一学期
ENG323《金融英语阅读》期末考试（A）卷参考答案本试卷适用于：全校三年级各专业学生（00级）I．Translate the following terms. (15%)
1．securities
2．mint parity
3．floating interest rate
4．maturity date
5．convertible paper currency
6．all-in-one
7．austerity
8．佣金
9．短期国库券
10．债券人
11．欠款
12．贴现行
13．降低成色
14．物物交换
15．财政赤字
II. Paraphrase the underlined sentences in English. (15%)
1.Devaluation: reduction of the value of (a currency) in relation to other currencies
or gold.
Speculative: of speculating
Deter: make sb. decide not to do sth.
Commitment: promise
2.Incentive: thing that encourages sb to do sth.; stimulus
Witness: give evidence
Deviation: difference
Mint parity: coins at par
Offset: compensate for sth; balance sth.
3.Averse: opposed
Short planning horizons: visions for short-term plans
1.Bid-ask: offer and ask for the price
Spread: difference
III. Translate the following sentences. (20%)
1. 金融机构拥有的对大量金钱的管理权同样也会引起政府部门的注意，一方面是因为它们从中看到了为借款人获取低廉融资的不可抗拒的机会，另一方面是从金融管理的经济效力的角度。
2. 大多数人在判断两条线的引领关系是否有所交替时都遇到了困难，以至于有时被预测的那个序列实际上引导序列。
3. 如果在合并中发行的股票面值总值总够大，以虚线表示的界限即向下移动越过增加的实收资本；于是联合后公司的增加的实收资本总额就不存在了，而且合并的留存收益下降了。
4. 斯密的古典经济自由主义主张在经济中政府干预最小化，市场依赖最大化，以使商业生产和社会财富增长，直至今日这种思想仍在盎格鲁撒克逊文化中占统治地位。
2.The information that the World Bank gathers about a nation’s or a project’s
finances, uses of funds, management abilities, and so forth tends to be more complete and accurate than the information likely to be available to a private, foreign business.
3.Finally, shirkers are likely to find that they are ousted by more energetic managers.
This competition may arise within the firm, but poorly performing companies are also more likely to be taken over. That sort of takeover typically brings in a fresh management team.
IV. Fill in the blanks according to what you have learnt in the textbook. (10%) PBC maintained, as of end-1996, 2450 subordinate establishments. Under the ( all-in-one ) ( monopolistic ) banking system, which lasted until 1978, PBC engaged in both central banking and ( commercial ) banking operations. During the course of the reform and opening up, some specialized banks and financial institutions were established or restored and took ( over ) part of macroeconomic management, the State Council made a decision in 1984 for PBC to
( function ) as a central bank. Following this decision, a central banking system began to ( take ) shape. However, PBC’s ( transition ) toward a full-fledged central bank turned out to be a long process. The financial sector reform in China ( entered ) a new phase in the latter half of 1993 when the State Council Decision on Financial Reform defined the PBC’s key functions as: to formulate and ( implement ) monetary policy so as to maintain the ( stability ) of the currency; and to exercise firm supervision over the financial institutions to ensure the safe and effective functioning of the financial system.
V. Read the following passages and answer the questions. (40%)
1.
1) Paraphrase the 6 underlined words (from ① to ⑥in English) (6 marks) fiduciary: trust;
revenue: total income;
declining: decreasing;
amounted to: added up to;
equitable: fair or just;
viable: feasible, workable or sound.
2) Decide whether the following statements are true or false. (14 marks)
Answer: F;F;T; T; T; F, T
2.
Questions to be answered:
1)What are the main reasons for fiscal mess in Brazil? (10%)
The main reason for last year’s fiscal mess was that spending, especially on pay, exploded
The central government’s wage bill rose by 16% in real terms last year, and now absorbs 45% of all revenues. At the level of the states the situation is even worse.
2)What does fiscal stability/success require according to the passage? (10%)
https://www.doczj.com/doc/462134565.html,ws to strengthen the budget, such as a new social security law and reform of
public administration
b.individual policies—such as cutting spending or raising taxes
c.fiscal prudence by government
Lesson One Translate the following passage into Chinese 1.紧缩性货币政策和扩张性货币政策都涉及到改变一个国家的货币供应量水平。 扩张性货币政策增加货币供应量，而紧缩性货币政策会减少货币供应量。 2.当联邦储备体系在公开市场上购买有价证券，会引起证券价格上涨。债券价格 和利率成反比关系。联邦贴现率就是一种利率，因此降低联邦利率实际上就是 降低利率。如果联邦储备系统决定降低法定储备要求，那么银行能够进行投资 的资金会增加。这会引起投资比如债券价格的上涨，因此利率会降低。无论联 邦储备体系用何种方法来增加货币供应量，利率都会降低，债券价格会上涨。 Translate the following sentences into English 1. China would maintain a stable currency and prudent monetary policy, and expected to stay within its growth and inflation targets this year 2.China would also maintain a prudent monetary policy to support economic development while preventing inflationary pressure and financial risks 3. China’s economy continued to grow steadily and rapidly in the first quarter, with investment in fixed assets slowing and domestic consumption accelerating. 4.because of China’s large increase in its trade surplus and foreign exchange reserves in the first quarter, the effectiveness of its monetary policy — used to help control inflation — was facing “serious challenges.” 5. The central bank would seek to further streamline its foreign exchange system to facilitate the orderly outflow of funds. At the same time, it would tighten the management of foreign exchange inflows and settlement. —Three Translation: Translate the following passage into Chinese 1．外汇交易当然是指两种不用货币之间的交易了。每一组货币的交易或“买卖”都包含两个部分。一个是即期市场，在这个市场中支付（交付）需在交易时立即进行（在实际操作中一般是在第二个交易日进行），另一个就是远期市场。远期市场的汇率是在交易的时候就先确定了，但实际的交易，或交付则是在未来的某个特定时间进行的。 2．外汇交易期权是指一种货币和另一种货币在未来进行交付的一个合同，在此合同中，
1. Usually the low interest rate currency trades at a ______ to the high interest rate currency in the forward market. A. premium B. par C. discount D. bar 2. 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 defaulting B. They are contrary to the general rule that letters of credit may only be used for the actual movement of goods C. They are unlike a tender bond in their legal standing and method of operation D. They are unlike a tender bond with its fixed expiry date 3. The most liquid of all assets is ______. A. the stock of commercial banks B. M 1 C. intelligence D. the debt of major corporations 4. Beta and standard deviation differ as risk measures in that beta measures ______. A. only unsystematic risk，while standard deviation measures total risk B. only systematic risk，while standard deviation measures total risk C. both systematic and unsystematic risk，while standard deviation measures only unsystematic risk D. both systematic and unsystematic risk，while standard deviation measures only systematic risk 5. 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 activities B. Cash balance at the end of the period C. Total liabilities due to creditors at the end of the period D. Net income 6. An analyst estimates that a stock has the following probabilities of return depending on the state of the economy： State of economyProbabilityReturn Good 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 debits B. decreases in asset and liability accounts are recorded by credits C. increases in asset and owner’s equity accounts are recorded by debits D. decreases in liability and owner’s equity accounts are recorded by debits 8. Individuals will accept the medium of exchange in return for goods and services only if they are confident that ______. A. the inflation rate is zero B. it possesses intrinsic value C. they can pass it on to others D. they can exchange it for gold 9. When a country’s currency appreciates，the country’s goods abroad become ______ and foreign goods in that country become ______. A. cheaper... more expensive B. more expensive... cheaper C. cheaper...cheaper D. more expensive... more expensive 10. A US company is bidding for a contract in China. Its Chinese customer asks for a
1. Which of the following is not a function of money? ______. A. To act as a medium of exchange B. To act as a unit of account C. To act as a store of value D. To provide a double coincidence of wants E. To act as a means of payment 2. The price in the foreign exchange market is called ______. A. the trade surplus B. the exchange rate C. the money price D. the currency rate 3. Market risk refers to the risk of______. A. financial prices fluctuations B. default C. fraud D. deferred payments 4. Which of the following is not among the generally accepted accounting principles? ______. A. Cash basis B. Prudence C. Consistency D. Going concern E. Money measurement.
5. What is a documentary letter of credit? ______. A. A conditional bank undertaking to pay an exporter on production of stipulated documentation B. A method of lending against documentary security C. An international trade settlement system biased in favour of importers D. All of the above 6. Holding a group of assets reduces risk as long as the assets ______. A. are perfectly correlated B. are completely independent C. do not have precisely the same pattern of returns D. have a correlation coefficient greater than one 7. An amount, payable in money goods, or service, owed by a business to a creditor, is known as a/an . A. liability B. debt C. equity D. asset 8. What function is money serving when you buy a ticket to a movie? ______. A. store of value B. a medium of exchange C. transaction demand D. a unit of account 9. If foreigners expect that the future price of sterling will be lower, the ______. A. supply of sterling will increase, demand for sterling will fall, and the exchange rate will fall
Chapter One Functions of Financial Markets 一．Translate the following sentences into Chinese. 1.China’s banking industry is now supervised by the PBC and CBRC. In addition, the MOF is in charge of financial accounting and taxation part of banking regulation and management. 目前中国银行业主要由中国人民银行和银监会进行监管。此外，财政部负责银行业监管的财务会计及税收方面。 2.Currently Chinese fund management companies are engaged in the following business: securities investment fund, entrusted asset management, investment consultancy, management of national social security funds, enterprise pension funds and QDII businesses. 目前中国的基金管理公司主要从事以下业务：证券投资基金业务、受托资产管理业务、投资咨询业务、社保基金管理业务、企业年金管理业务和合格境内机构投资者业务等。 3.China's economy had 10% growth rate in the years before the world financial crisis of 2008. That economic expansion resulted from big trade surpluses and full investment. Now China is seeking to move away from that growth model. The country is working to balance exports with demand at home. 在2008年世界经济危机之前的那些年，中国经济增长速度曾达到10%。这一经济增长源于巨额贸易盈余和大量投资。中国现在正在寻求改变这一增长模式。中国正致力于平衡出口和国内需求。 二．Translate the following sentences into English 1.中国商业银行监管的程序是市场准入监管、市场运营监管和市场退出监管。 Regulatory procedures of China’s commercial banks are market access regulation, market operation regulation and market exit regulation. 2.国务院关于推进资本市场改革开放和稳定发展的若干意见。 Some opinions of the State Council on promoting the reform, opening and steady growth of the capital market 3.只有建立合理的股权结构，才能保证公司取得好的经营业绩。 Only establishing reasonable ownership structure can guarantee perfect corporate performance. 4.该公司股票暴跌，被伦敦交易所摘牌。 The company’s stock nosedived and it was delisted from the London exchange.
Chapter13 (exercises) I .Answer the following questions in English. 1.Carefully describe a futures contract. A future contract is a blinding agreement between a seller and a buyer to make and to take delivery of the underlying commodity at a specified future date with agreed upon payment terms. Futures contracts are standardized with respect to the delivery month. 2.Explain how futures contracts are valued daily, It is possible to calculate a theoretical fair value for a futures contract.The fair value of a futures contract should approximately equal the current value of the underlying shares or index,plus an amount referred to as the “cost of carry”.The full value of the contract is not paid or received when the contract is established-instead both buyer and seller pay a small initial margin. 3.Describe the role of the clearinghouse in futures trading. The clearinghouse,an agency or separate corporation of a futures exchange.The clearinghouse becomes the buyer to each seller and assumes responsibility for protecting buyers and sellers from financial loss by assuring performance on each contract. 4. Explain the differences between a hedger and a speculator. The difference between hedgers an speculators is the risk. Hedgers are parties at risk with a commodity or an asset,but speculators trads futures with the objective of making a profit by being on the right side of a price move. 5. Give a brief description of the history of futures. Both the histories of futures are focused on that how people have tried to improve the effectiveness of the commercial marketplace. 6. What is key difference between forward and futures? Forward contracts and futures comparison: the former is a standardized contract, OTC, flexible and high transaction cost, risk is big. The latter are standardized contracts, exchange as a medium, investors and unlike forward contracts as the direct trading, risk is small. Options and futures comparison: futures trading both sides has rights and obligations. While the option buyer the right to sell only, only obligation. In addition from the gains and losses, the futures of profit and loss is uncertain, but the option buyer 's loss is the option premium. Ⅱ. Fill in the each blank with an appropriate word or expression.
Suggested Solution Chapter 1 3. 4.
5. (b) net income = 9,260-7,470=1,790 (c) net income = 1,790+2,500=4,290
Chapter 2 1. a.To increase Notes Payable -CR b.To decrease Accounts Receivable-CR c.To increase Owner, Capital -CR d.To decrease Unearned Fees -DR e.To decrease Prepaid Insurance -CR f.To decrease Cash - CR g.To increase Utilities Expense -DR h.To increase Fees Earned -CR i.To increase Store Equipment -DR j.To increase Owner, Withdrawal -DR 2. a. Cash 1,800 Accounts payable ................................................... 1,800 b. Revenue ................................................................... 4,500 Accounts receivable ...................................... 4,500 c. Owner’s withdrawals ................................................ 1,500 Salaries Expense ............................................ 1,500 d. Accounts Receivable (750) Revenue (750) 3. Prepare adjusting journal entries at December 31, the end of the year. Advertising expense 600 Prepaid advertising 600 Insurance expense (2160/12*2) 360 Prepaid insurance 360
金融英语证书考试（FECT）Exercises-1（1） 1.Which of the following is not a function of money？______。? A.To act as a medium of exchange B.To act as a unit of account C.To act as a store of value D.To provide a double coincidence of wants E.To act as a means of payment 2.The price in the foreign exchange market is called ______。 A.the trade surplus B.the exchange rate C.the money price D.the currency rate 3.Market risk refers to the risk of______。 A.financial prices fluctuations B.default C.fraud D.deferred payments 4.Which of the following is not among the generally accepted accounting principles？______。 A.Cash basis B.Prudence C.Consistency D.Going concern
E.Money measurement。 5.What is a documentary letter of credit？______。 A.A conditional bank undertaking to pay an exporter on production of stipulated documentation B.A method of lending against documentary security C.An international trade settlement system biased in favour of importers D.All of the above 6.Holding a group of assets reduces risk as long as the assets ______。 A.are perfectly correlated B.are completely independent C.do not have precisely the same pattern of returns D.have a correlation coefficient greater than one 7.An amount，payable in money goods，or service，owed by a business to a creditor，is known as a/an 。 A.liability B.debt C.equity D.asset 8.What function is money serving when you buy a ticket to a movie？______。 A.store of value
第一章： 1、equity（股本） 2、financial system 3、portfolio（投资组合） 4、bond 5、stock 1.another way for Intel to raise funds to build a new semi-conductor factory is to sell stock in the company. Stock represents ownership in a firm and is, therefore a claim to the profits that the firm makes. For example, if Intel sells a total of 1000000 shares of stocks, then share represents ownership of 1/1000000 of the business 2. A mutual fund is an institution that sells shares to the public and uses the proceeds to buy a selection, or portfolio, of various types of stocks, bonds, or both stocks and bonds. The shareholder of the mutual fund accepts all the risks and returns associated with the portfolio. If the value of the portfolio rises, the shareholder benefits, if the value of the portfolio falls, the shareholder suffers the loss. 第二章： 1、commodity money 2、fiate money 3、bank note 4、Treasury Bill 5、money supply Most countries today have an “independent” central bank, that is, one which operates under rules designed to prevent political interference. Examples include the European Central Bank, the US Federal Reserve, the Reserve Bank of Australia, the Reserve Bank of India, the Bank of England, the Bank of Canada, etc. Some central banks are publicly owned, and others are, in theory, privately owned. In practice, there is little difference between public and private ownership, since in the latter case almost all profit of the bank are paid to the government either as a tax or a transfer to the government.
国际金融英文版习题 Company number：【0089WT-8898YT-W8CCB-BUUT-202108】
Chapter1 balance of payments Balance of Payments Accounting 1Balance of payments a)is defined as the statistical record of a country’s international transactions over a certain period of time presented in the form of a double-entry bookkeeping b)provides detailed information concerning the demand and supply of a country’s currency c)can be used to evaluate the performance of a country in international economic competition d)all of the above Answer: d 2Generally speaking, any transaction that results in a receipt from foreigners a)Will be recorded as a debit, with a negative sign, in the . balance of payments b)Will be recorded as a debit, with a positive sign, in the . balance of payments c)Will be recorded as a credit, with a negative sign, in the . balance of payments d)Will be recorded as a credit, with a positive sign, in the . balance of payments Answer d 3 Generally speaking, any transaction that results in a payment to foreigners e)Will be recorded as a debit, with a negative sign, in the . balance of payments f)Will be recorded as a debit, with a positive sign, in the . balance of payments g)Will be recorded as a credit, with a negative sign, in the . balance of payments h)Will be recorded as a credit, with a positive sign, in the . balance of payments Answer a) 4 Suppose the McDonalds Corporation imports 100 tons of Canadian beef, paying for it by transferring the funds to a New York bank account kept by the Canadian Beef Conglomerate. i)Payment by McDonalds will be recorded as a debit j)The deposit of the funds by the seller will be recorded as a debit k)Payment by McDonalds will be recorded as a credit l)The deposit of the funds by the buyer will be credit Answer: a 5Since the balance of payments is presented as a system of double-entry bookkeeping,
Chapter 11 Mutual Funds E x er c is e s Ⅰ、Answer the following questions in English. 1. What is NOT an advantage of a mutual fund? A. Instant Diversification. B. Easy to Use. C. You can easily make monthly contributions. D. You are guaranteed to double your money in 5 years. 2. If you were looking to invest in a specific country or region, which mutual fund would be best suited for you? A. Global Fund B. Regional Fund C. Growth Fund D. Socially Responsible Fund E. Green Fund 3. What is the difference between a front end and back end load? A. Front-end funds charge a fee if the fund is redeemed early, back-end funds don 't. B. Front-end funds don't charge a fee, back-end funds do. C. Front-end funds charge a fee when you buy the fund, back-end funds charge the fee at redemption. D. None of the above. 4.what percent do most mutual funds have administration fees? A. 0% B. 0.5%--2.5% C. 3% -- 5% D. 6% -- 10% 5. Buying a mutual fund based on past performance is a good strategy. A. True. . B. False. Ⅱ、Fill in the each blank with an appropriate word or expression. 1. There are, however, many different types of equity funds because there are many different types of equities. 2. The idea of pooling resources and spreading risk using closed-end investments soon took root in Great Britain and France, making its way to the United States in the 1890s. 3. What was once just another obscure financial instrument is now a part of our daily lives. 4. Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all income it receives over the year to fund owners in the form of a distribution. 5. If the fund sells securities that have increased in price, the fund has a capital . Most funds also pass on
Chapter 2 Overview of the Financial System 2.1 Single Choice 1) Every financial market performs the following function: A) It determines the level of interest rates. B) It allows common stock to be traded. C) It allows loans to be made. D) It channels funds from lenders-savers to borrowers-spenders. 2) Financial markets have the basic function of A) bringing together people with funds to lend and people who want to borrow funds. B) assuring that the swings in the business cycle are less pronounced. C) assuring that governments need never resort to printing money. D) both A and B of the above. E) both B and C of the above. 3) Which of the following can be described as involving direct finance? A) A corporation's stock is traded in an over-the-counter market. B) People buy shares in a mutual fund. C) A pension fund manager buys commercial paper in the secondary market. D) An insurance company buys shares of common stock in the over-the-counter markets. E) None of the above. 4) Which of the following can be described as involving direct finance? A) A corporation's stock is traded in an over-the-counter market. B) A corporation buys commercial paper issued by another corporation. C) A pension fund manager buys commercial paper from the issuing corporation. D) Both A and B of the above. E) Both B and C of the above. 5) Which of the following can be described as involving indirect finance? A) A corporation takes out loans from a bank. B) People buy shares in a mutual fund. C) A corporation buys commercial paper in a secondary market. D) All of the above. E) Only A and B of the above. 6) Which of the following can be described as involving indirect finance? A) A bank buys a U.S. Treasury bill from one of its depositors. B) A corporation buys commercial paper issued by another corporation. C) A pension fund manager buys commercial paper in the primary market. D) Both A and C of the above.