2012年金融英语证书考试FECT模拟试题及答案-5
SECTION ONE (Compulsory) ：Single-choice questions
from the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points)
1. Which belongs to the Tightening of fiscal policy tools? ( )
A. Reduce government spending and increase tax revenue
B. Reduce government spending and reduce taxes
C. Increasing government spending and reducing taxes
D. Increase in government expenditure and increase tax revenue
2. What market is the Most in need of the advertising? ( )
A. Fully competitive market
B. Monopolize market
C. Competitive monopoly market
D. Oligopoly market
3. The value of national output: ( )
A. Is the same of the output of all businesses.
B. Is the aggregate of output of employed persons.
C. Is synonymous with aggregate manufacturing output.
D. Utilizes the "added value" concept.
4. With C = 10 + 0.7Y and the level of income changing from $70 billion to $80 billion, the increase in consumption and the revised average propensity to consume (ape) respectively would be: ( )
A. $9 billion and 0.78.
B. $6 billion and 0.8.
C. $7 billion and 0.79.
D. $7 billion and 0.825.
5. Which of the following goods is likely to have the most elastic demand? ( )
A. A particular brand of breakfast cereal.
B. Breakfast cereals in general.
C. A very cheap good on which not much is spent (e.g. matches newspaper) .
D. An essential good.
6. School students paying a lower fare than adults on the MTR trains, or cheaper tickets to the theatre, is an example of: ()
A. The suppliers making less profit because some customers pay a lower price.
B. Consumers obtaining more consumer surplus.
C. Price discrimination allowing the suppliers to make more profit from charging a higher price to
customers whose demand is more elastic.
D. Price discrimination allowing the suppliers to make more profit from charging a lower price to customers whose demand is more elastic.
7. A futures trader goes long one futures contract at $450. The settlement price 1 day before expiration is $500. On expiration day, the future is trading at $505. The least likely way the futures trader will lock in her
profits on expiration is: ( )
A. Take delivery of the underlying asset and pay $500 to the short.
B. Close out the futures position by selling the futures contract at $505.
C. Take delivery of the underlying asset and pay the expiration settlement price to the short.
D. Cash settle the futures and receive the difference between $500 and the expiration settlement price.
8. In the context of break-even analysis, the Margin of Safety for a firm is: ( )
A. The difference between the sales revenue achieved and the break-even revenue.
B. The difference between planned (or actual) output and the break-even quantity in a particular time period.
C. The percentage difference between planned (or actual) output and the break-even quantity.
D. The difference between planned (or actual) output and the break-even quantity.
9. There is 5-year annuity of $3,000 per year. However, the first payment will not pay until year 3. Assuming the interest rate is 10%, calculate the present value of this annuity. ( )
A. $8397.
B. $9,399.
C. $10,258.
D. None of the above.
10. Hub Global, Inc. has issued two classes of debt securities to finance its operations, a first mortgage bond and debenture bonds. All else equal, will the default and recovery rates of the debenture likely be higher than the first mortgage bond? ( )
A. Answer A.
B. Answer B.
C. Answer C.
D. Answer D.
SECTION TWO(Compulsory)：Reading Comprehension (10 points)
Gary Zeller, an independent portfolio manager who manages money for high-net-worth individuals, is a proponent of the efficient market hypothesis. He uses the Treynor-Black model to determine asset allocations for his portfolios. At the moment, he is considering several investments for new portfolios. Here are their characteristics.
The risk-free rate is 5.7%. The expected return of the S&P 500 Index is 10%, and the index's standard deviation is 14%.
Zeller plans to create a portfolio using a mix of the S&P 500 Index, the risk-free asset, and the four stocks discussed above. He uses the data above to select the appropriate asset allocations to maximize returns.
Recent market activity has Zeller concerned. For several weeks he has seen stocks with weak fundamentals stage a strong rally, while solid, steady-growth stocks have lagged. After extensive research into technical trends and an analysis of the market's fundamentals, Zeller has come to believe the recent trend in the market is likely to continue, with speculative stocks continuing to rally.
Despite the gains in speculative stocks, Zeller sees continued weakness in larger, solid stocks causing a decline in the S&P 500 Index. To compensate for this risk, he purchases put options on the 50 largest stocks in the capitalization-weighted index instead of buying the index itself for the new portfolios.
Later that day, Zeller receives an e-mail from Florence Whitaker, a client whose portfolio has performed poorly in recent months. She is not happy with the results and questions Zeller's allocation strategy.
In a response e-mail, Zeller defends the Treynor-Black model and makes the following points:
The strategy is designed to beat the market, but not necessarily to generate gains when the market is down.
In your portfolio, I overweight the stocks with the highest potential return to boost performance.
A mix of individual stocks and index funds gives the portfolio better potential returns than the index, while offering less risk than the individual stocks.
All of the stocks in your portfolio have betas below 1.
After sending the e-mail, Zeller opens up a spreadsheet to crunch some numbers. Several of his portfolios have underperformed over the last year, and he resolves to consider whether he should relax his assumptions about the accuracy of forecasts.
1) From highest allocation to lowest, how should Zeller allocate the four stocks in his portfolio? ()
A. Hearthstone, Minster Mask and Costume, Kustom Auto, Imperial Shipyards.
B. Minster Mask and Costume, Kustom Auto, Imperial Shipyards, Hearthstone.
C. Kustom Auto, Imperial Shipyards, Minster Mask and Costume, Hearthstone.
D. Minster Mask and Costume, Hearthstone, Kustom Auto, Imperial Shipyards.
2) Which of Zeller's actions is least compatible with the use of the Treynor-Black model? His: ()
A. Purchase of put options.
B. Use of index funds.
C. Willingness to actively manage portfolios.
D. Support of the efficient market hypothesis.
3) In light of his observations about market movements, Zeller should: ()
A. Increase his cash allocation.
B. Increase his index-fund allocation.
C. Take no action, the model will account for any changes.
D. Increase his allocation of actively managed stocks.
4) If Zeller stops assuming forecasts are accurate, he will most likely: ()
A. Increase the number of stocks in the portfolio.
B. Shift subtly toward CAPM.
C. Reduce both risk and potential return of the portfolio.
D. Need to rebalance the portfolio more often.
5) Assuming Zeller intends to take positions in all four of the stocks discussed above, how many should he sell short? ()
A. 1.
B. 0.
C. 2.
D. 3.
SECTION THREE(Compulsory)：Explanations of terms(25 points)
1. Margin requirement
2. Interest ceiling
3. Bank for International Settlements (BIS)
4. Bancassurance
5. Secondary market
SECTION FOUR(Compulsory)：Answer Questiones (32 points)
1: Explain the Mechanism of Money Supply.
2: What is the Function of stock exchanges?
3: List the Counter-measures of Deflation as more as possible.
4: What is Financial Liberalization? And what is The Nature of Financial Liberalization?
SECTION FIVE(Compulsory)：Caculation (13 points)
Let's take an example. Suppose that a share of Haier in the Hong Kong Stock Market had a closing price yesterday of HK $ 10, but new information was announced after the market closed that caused a revision in the forecast of price next year to go to HK $15. If the annual equilibrium return on Haier is 20%, what does efficient markets theory indicate the price will go to today when the market opens? (Assume that Haier pays no dividends.)
SECTION SIX(Compulsory)：Explanations of Model (10 points)
Please illustrate the macroeconomic-based risk factor models:
参考答案
SECTION 1
1. B C D D C ，D C B B A
SECTION 2
Reading Comprehension: (10 points)
1) B was correct!
The Treynor-Black model calls for greater weights to stocks with high forecast alpha relative to unsystematic risk. The Sharpe ratio reflects that relationship. To calculate the Sharpe ratio, we subtract the risk free rate from the expected stock returns, and then divide by the stock's standard deviation. Beta is not a measure of unsystematic risk, so it should not be used. Sharpe ratios for the four stocks are as follows: Hearthstone = 27.35%.
Imperial = 27.5%.
Minster = 46.14%.
Kustom Auto = 37.86%.
The higher the Sharpe ratio, the higher the level of alpha relative to unsystematic risk. As such, the highest weighting should go to Minster Mask and Costume, the second-highest to Kustom Auto, the third-highest to Hearthstone, and the fourth-highest to Imperial Shipyards.
2) A was correct!
Index funds appeal to efficient market theorists in part because they offer a low-cost way of investing in the market without trying to exploit infrequent mispricing. While active management of any sort may seem incongruous against the efficient market backdrop, it is active management, or the search for alpha, that clears up mispricings and theoretically leads to market equilibrium. The Treynor-Black model is an optimization framework that assumes markets are nearly efficient but does allow for some active management. The Treynor-Black model assumes a portfolio consisting of index funds, stocks, and the risk-free return. Put options have no place in that model.
3) D was correct!
As markets become more efficient, alphas shrink, and portfolio managers using the Treynor-Black model will reduce their allocation of actively managed stocks. However, Zeller expects mispricings to increase in the coming months, so he should step up the active management of his portfolios to take advantage of the higher alphas.
4) C was correct!
The Treynor-Black model assumes forecasts are accurate. Relaxing that assumption requires analysts to place less weight on forecasts. If we discount the value of forecasted alpha, the weighting of the actively managed portion of the portfolio will decrease relative to the index. A higher index weighting is likely to reduce both risk and potential return. The less trust we have in forecasts, the more forecasted alpha is required to justify making a bet on an individual stock. Stocks with marginal alpha will become less appealing, so the number of stocks suitable for investment will decline. The number of stocks in the portfolio is more likely to decline than
to increase. CAPM is very different from the Treynor-Black model, and accounting for inaccurate forecasts does not change that. Portfolio rebalancing is not relevant here.
5) B was correct!
While one of the stocks is expected to underperform, the index and two of the stocks have lower Sharpe ratios than the index; all have a positive expected alpha. As such, none should be shorted.
SECTION 3
Explanations of terms：(10 points)
1. Margin requirement：Margin requirement refers to that a central bank sets the percentage of loans in the volume of securities transactions for various loans involving securities transactions, such as setting the amount of payment according to the ratio of margin when people purchase securities on credit.
2. Interest ceiling：Interest ceiling is the maximum of the interest rate paid by commercial banks on time deposits and savings deposits, the purpose of which is to prevent banks from over competing for deposits by raising interest rates and to avoid credit risk.
3. Bank for International Settlements (BIS)：An international organization fosters the cooperation of central banks and international monetary policy makers. Established in 1930, it is the oldest international financial organization, and was created to administer the transaction of monies according to the Treaty of Versailles. Among others, its main goals are to promote information sharing and to be a key center for economic research.
4. Bancassurance：The term used to describe the sale of insurance products in a bank. The word is a combination of "banque or bank" and "assurance" signifying that both banking and insurance are provided by the same corporate entity.
5. Secondary market：A market in which an investor purchases a security from another investor rather than the issuer, subsequent to the original issuance in the primary market, also called aftermarket.
SECTION4
Question1：
Answer:
The mechanism of money supply involves such things as where money comes from, through what channel money comes into circulation or how money is supplied in .an economy, thus forms the movement of money.
Money in modern economy is created by the banking system. As we mentioned in Section 1 , the process of money creation involves the central bank, commercial banks, depositors and borrowers, but among them the most important are the central bank and commercial banks. The former has the privilege to provide monetary base and regulate money supply while the latter creates money.
Question2：
Answer:
Stock exchanges are formal organizations. They are made up of members who use the exchange facilities and systems to exchange or trade listed stocks. These exchanges are physical locations where members assemble to trade. Stocks that are traded on an exchange are said to be listed stocks. That is, these stocks are individually approved for trading on the exchange by the exchange. To be listed, a company must apply and satisfy requirements established by the exchange for minimum capitalization, shareholder equity, average
closing share price, and other
criteria. Even after being listed, exchanges may delist a company's stock if it no longer meets the exchange requirements.
To have the right to trade securities or make markets on an exchange floor, firms or individuals must become a member of the exchange, which is accomplished by buying a seat on the exchange. The number of seals is fixed by the exchange and the cost of a seat is determined by supply and demand of those who want to sell or buy seats. In early 2001, there was 1, 366 seats on the NYSE, and the cost of a seat were $2 million.
Stock exchanges perform important roles in national economies. Most important, they encourage investment by providing places for buyers and sellers to trade securities. This investment, in turn, enables corporations to obtain funds to expand their businesses.
Question3：
Answer:
As deflation is caused by varied factors, the ways to deal with deflation should be diversified. Generally speaking, deflation is handled with the following measures;
(1) Expansionary macroeconomic policies
In order to enhance the aggregate demand and prevent an economy from sliding into recession when there is a deflation, expansionary monetary and fiscal policies should be applied. On one hand, expansionary monetary policy is used to stimulate effective demand; on the other hand, expansionary, fiscal policy increases government spending to make up insufficient investment in the private sector. During deflation expansionary, fiscal policy is more effective in stimulating the aggregate demand, while monetary policy in short run is slow to show effects which also depends on enterprise and household demand. From 1998 to 2002, the Chinese government raised RMB 6, 600 billion by issuing national debts and the funds have been used in infrastructure construction and played a very important part in increasing the aggregate demand and in gaining an average growth rate of 7. 5%，under the influence of many unfavorable economic variables.
(2) Adjustment of production structure
The direct cause of deflation is insufficient effective demand. Insufficient effective demand and excess supply are two sides of a coin. Not only demand should be stimulated, but also excess supply or excess production capacity should be tackled in solving the problem of insufficient demand. As the structural defects of supply causes excess supply, adjustment of production structure is needed in order to weed out excess supply or excess productive capacity. As for adjustment of industrial structure, it is important to escalate industrial structure and find new source of economic growth and form new consumption demand. Meanwhile, foreign markets should be developed and export should be promoted. Usually when there exists excess production capacity, there will be malignant competition in the market. In order to seize market share, there will be continuous price competition so the profit of the whole industry will decline. During the process of fierce competition, some enterprises will be forced to exit the market and there will be more mergers and acquisitions. After that, the malignant market competition will be controlled and price fall caused by the malignant market competition can be possibly avoided.
(3) Other counter-measures of deflation
Besides the measures mentioned above, the policy of wage and price control is one of countermeasures against deflation. During deflation, a plan to raise wage and prevent prices from declining can be carried out, which has the opposite effect of wage-price guideline during inflation. A government can also intervene stock market with certain policy to push up stock price, which will lead to people's optimistic expectation of future and appreciation of book value of financial assets, hence the effect of wealth increase. In this case, the propensity of consumption of households will be enhanced.
So far, some achievements on the study of deflation have been made, but more efforts are needed to look deeply into this economic phenomenon.
Question4：
Answer:
Financial liberalization refers to measures directed at diluting or dismantling regulator，controlling over the institutional structures, instruments and activities of agents in different segments of the financial sector.
These measures can relate to internal or external regulations (Chandrasekhar, 2004). Internal financial liberalization typically includes some or all of the following measures, in varying degrees;
●The reduction or removal of controls on th e interest rates or rates of return charged by financial agents. Of course, the central bank continues to influence or administer that rate structure through adjustments of its discount rate and through its own open market operations. But deregulation typically removes interest rate ceilings and encourages competition between similarly placed financial firms aimed at attracting depositors on the one hand and enticing potential borrowers to take on debt on the other. As a result, price competition squeezes spreads and forces financial firms (including banks) to depend on volumes to ensure returns.
●The withdrawal of the state from the activity of financial intermediation with the conversion of the " development banks" into regular banks and the privatization of the publicly owned banking system, on the grounds that their presence is not conducive to the dominance of market signals in the
allocation of capital. This is usually accompanied by the decline of directed credit and the removal of requirements for special credit allocations to priority sectors, whether they are government, small-scale producers, agriculture or other sectors seen as priorities for strategic or developmental reasons.
The easing of conditions for the participation of both firms and investors in the stock market by diluting or doing away with listing conditions, by providing freedom in pricing of new issues, by permitting greater freedoms to intermediaries, such as brokers, and by relaxing conditions with regard to borrowing against shares and investing borrowed funds in the market.
●The reduction in controls over the investments that can be undertaken by financial agents and, specifically, the breaking down the "Chinese wall" between banking and non-banking activities. Most regulated financial systems sought to keep separate the different segments of the financial sector such as banking, merchant banking, the mutual fund business and insurance. Agents in one segment were not permitted to invest in another for fear of conflicts of interest that could affect business practices adversely. The removal of the regulatory walls separating these sectors leads to the emergence of "universal banks" or financial supermarkets. This increases the inter-linkages between pyramiding financial structures.
●The expansion of the sources from and instruments through which firms or financial agents can access
funds. This leads to the proliferation of instruments such as commercial paper and certificates of deposit issued in the domestic market and allows for offshore secondary market products such as ADRs (American Depository Receipts—the floating of primary issues in the United States market by firms not based in the United States) or GDRs (Global Depository Receipts).
The liberalization of the rules governing the kinds of financial instruments that can be issued and acquired in the system. This transforms the traditional role of the banking system's being the principal intermediary bearing risks in the system. Conventionally, banks accepted relatively small individual liabilities of short maturities that were highly liquid and involved lower income and capital risk and made large, relatively illiquid and risky investments of longer maturities. The protection afforded to the banking system and the strong regulatory constraints thereon were meant to protect its viability given the role it played. With liberalization, the focus shifts to that of generating financial assets that transfer risks to the portfolio of institutions willing to hold them.
External financial liberalization typically involves changes in the exchange control regime. Typically, full convertibility for current account transactions accompanying trade liberalization have been either prior or simultaneous reforms, which are then complemented with varying degrees of convertibility on the capital account. Capital-account liberalization measures broadly
cover the following, in increasing degree of intensity, but with a wide variety of patterns of implementation: SECTION 5
Caculation
ANSWERS:
We, based on the above conditions given, get the following equation:
SECTION 6
Explanation
denotes: the return on a value-weighted index of NYSE-listed stocks
denotes the monthly growth rate in US, industrial production
denotes the change in inflation, measured by the Us, consumer price index denotes the difference between actual and expected levels of inflation
denotes the unanticipated change in the bond credit spread (Baa yield-RFR) denotes the unanticipated term structure shift (long-term RFR less short-term RFR) The explanation:
湖南涉外经济学院2015—2016学年度第一学期 《国际金融与结算》课程考核试题册 学院：外国语学院专业年级：2012级商英本科 考核方式：闭卷考试时量：100分钟试卷类型： A I. Multiple choices: Choose the best answer to each question, and write your answers on your answer sheet.（本大题共20小题，每小题1分，共20分） 1. A credit item in the balance of payments is . A.an item for which the country must be paid B.an item for which the country must pay C.any imported item D.an item that creates a monetary claim owned to a foreigner. 2. In a exchange rate system there is no intervention by the government or central bankers. A.fixed B. pegged C. floating D. managed float 3. The price in the foreign exchange market is called . A.the trade surplus B. the money price C. the exchange rate D. the currency rate 4. If Canadian speculators believed the Swiss franc was going to appreciate against the U.S. dollar, they would . A. puchase Canadian dollars B. purchase U.S. dollars C. purchase Swiss francs D. sell Swiss francs 5. Under a system of floating exchange rates, the Swiss franc would depreciate in value if which of the following occurs? A. price inflation in France B. an increase in U.S. real income C. a decrease in the Swiss money supply D. falling interest rates in Switzerland 6. is an example of foreign direct investment. A. Exporting to a country B. Establishing licensing arrangement in a country C. Purchasing existing companies in a country D. Investing directly (without brokers)in foreign stocks 7. The payment of a dividend by an American company to a foreign stockholder represents . A. a debit in the US capital account B. a credit in the US capital account C. a credit in the US current account D. a debit in the US current account 8. If American exports to Japan increase and American imports from Japan decreases, then, under a floating exchange rate system, we would expect the dollar to . A. weaken against the Japanese yen B. depreciate against the Japanese yen C. devalue against the Japanese yen D. appreciate against the Japanese yen 9. The term foreign exchange is best defined by the following statement; it is . A. the rate of exchange between two currencies B. an instrument such as paper currency, note, and check used to make payments between countries C. the place in which foreign currencies are exchanged D. synonymous with currency exchange 10. Which of the following is likely to exist when people are willing to pay more for dollars than the official rate? A. gray market B. black market C. gold market D. crawling peg market 11. Which of the following is NOT a way for a country to defend its fixed exchange rate? A. Engage in one-way speculative bubble B.Intervene in the foreign exchange market by buying or selling foreign currency. C.Alter domestic interest rates to influence short-term capital flows. D.Impose some form of exchange control to influence short-term capital flows. 12. If the price of British pounds in terms of US dollar is $1.80 per pound, then the price of US dollar in terms of British pounds is . A. 1.8￡ per dollar B. 0.555￡ per dollar C. 0.90￡ per dollar D. 3.6￡ per dollar 13. 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 14. Intervention in the foreign exchange market means the government . A. restricts individuals from buying and selling foreign exchange B. restricts the importation of certain goods C. or central bank buys or sells foreign exchange D. devalues the currency in the foreign-exchange market 15. A strong dollar encourages . A. travel to the United States by foreigners B. purchase of American goods by foreigners C. Americans to travel abroad D. Americans to save dollars. 16. In an exchange rate, the first currency is referred to as and the second as . A. the base currency…the quote currency B. the quote currency…the base currency C. the base currency…the exchange currency D. the trade currency…the base currency 17. When the Japanese yen appreciates, then we might expect (everything else equal) that imports in Japan will and exports will . A. rise…fall B. rise…rise C. fall…fall D. fall…rise 18. While trading in foreign exchange takes place worldwide, the major currency trading centers are located in .
金融英语证书考试（F E C T）E x e r c i s e s-1（1） of the following is not a function of money？______。? act as a medium of exchange act as a unit of account act as a store of value provide a double coincidence of wants act as a means of payment price in the foreign exchange market is called ______。 trade surplus exchange rate money price currency rate risk refers to the risk of______。 prices fluctuations payments of the following is not among the generally accepted accounting principles？______。 basis concern measurement。 is a documentary letter of credit？______。 conditional bank undertaking to pay an exporter on production of stipulated documentation method of lending against documentary security international trade settlement system biased in favour of importers of the above a group of assets reduces risk as long as the assets ______。 perfectly correlated completely independent not have precisely the same pattern of returns a correlation coefficient greater than one amount，payable in money goods，or service，owed by a business to a creditor，is known as a/an 。 function is money serving when you buy a ticket to a movie？______。 of value medium of exchange
国际金融双语期末A卷--
————————————————————————————————作者：————————————————————————————————日期：
Part I: Multiple choice(1*30=30score) ( only one choice for each question) 1.Which of the following transactions is recorded in the financial account? A)Ford motor company builds a new plant in China B)A Chinese businessman imports Ford automobiles from the United States. C)A U.S. tourist spends money on a trip to China. D)The New York Yankees are paid $10 million by the Chinese to play an exhibition game in Beijing, China. 2.In the balance of payments, the statistical discrepancy or error term is used to: A)Ensure that the sum of all debits matches the sum of all credits. B)Ensure that imports equal the value of exports. C)Obtain an accurate account of a balance-of-payments deficit. D)Obtain an accurate account of a balance-of-payments surplus. 3. A deficit in the overall balance generally is an indication that: A)The country’s monetary authorities were selling foreign currency. B)The country’s moneta ry authorities were buying foreign currency. C)The country’s monetary authorities were buying domestic currency. D)The country’s monetary authorities were buying imported goods. 4. Suppose that a Korean television set that costs 600 won in Korea costs $400 in the United States. These prices suggest that the exchange rate between the won and the dollar is: A)1.5 won per dollar B)0.75 won per dollar C)$1.50 per won D)$3 per won 5. To the US, U.S. capital inflows will create a __________ foreign currency and a __________ U.S. dollars. A)Demand for; supply of B)Supply of; demand for C)Shortage of; demand for D)Supply of; shortage of 6. U.S. imports of goods and services will create a __________ foreign currency and a __________ U.S. dollars. A) Demand for; supply of B) Supply of; demand for C) Shortage of; demand for D) Supply of; shortage of 7.If the spot price of the euro is $1.10 per euro and the 30-day forward rate is $1.00 per euro, and you believe that the spot rate in 30 days will be $1.05 per euro, you can
《会计专业英语》模拟试题及答案 一、单选题（每题1分，共20分） 1. Which of the following statements about accounting concepts or assumptions are correct? 1）The money measurement assumption is that items in accounts are initially measured at their historical cost. 2）In order to achieve comparability it may sometimes be necessary to override the prudence concept. 3）To facilitate comparisons between different entities it is helpful if accounting policies and changes in them are disclosed. 4）To comply with the law, the legal form of a transaction must always be reflected in financial statements. A 1 and 3 B 1 and 4 C 3 only D 2 and 3 Johnny had receivables of $5 500 at the start of 2010. During the year to 31 Dec 2010 he makes credit sales of $55 000 and receives cash of $46 500 from credit customers. What is the balance on the accounts receivables at 31 Dec 2010? $8 500 Dr $8 500 Cr $14 000 Dr $14 000 Cr Should dividends paid appear on the face of a company’s cash flow statement? Yes No Not sure Either Which of the following inventory valuation methods is likely to lead to the highest figure for closing inventory at a time when prices are dropping? Weighted Average cost First in first out (FIFO) Last in first out (LIFO) Unit cost 5. Which of following items may appear as non-current assets in a company’s the statement of financial position? (1) plant, equipment, and property (2) company car (3) €4000 cash (4) €1000 cheque A. (1), (3) B. (1), (2) C. (2), (3)
PartⅠ.Decide whether each of the following statements is true or false (10%)每题1分，答错不扣分 1. If perfect markets existed, resources would be more mobile and could therefore be transferred to those countries more willing to pay a high price for them. ( T ) 2. The forward contract can hedge future receivables or payables in foreign currencies to insulate the firm against exchange rate risk. ( T ) 3. The primary objective of the multinational corporation is still the same primary objective of any firm, i.e., to maximize shareholder wealth. ( T ) 4. A low inflation rate tends to increase imports and decrease exports, thereby decreasing the current account deficit, other things equal. ( F ) 5. A capital account deficit reflects a net sale of the home currency in exchange for other currencies. This places up ward pressure on that home currency’s value. ( F ) 6. The theory of comparative advantage implies that countries should specialize in production, thereby relying on other countries for some products. ( T ) 7. Covered interest arbitrage is plausible when the forward premium reflect the interest rate differential between two countries specified by the interest rate parity formula. ( F ) 8．The total impact of transaction exposure is on the overall value of the firm. ( F ) 9. A put option is an option to sell-by the buyer of the option-a stated number of units of the underlying instrument at a specified price per unit during a specified period. ( T ) 10. Futures must be marked-to-market. Options are not. ( T ) PartⅡ:Cloze (20%)每题2分，答错不扣分 1. If inflation in a foreign country differs from inflation in the home country, the exchange rate will adjust to maintain equal( purchasing power ） 2. Speculators who expect a currency to ( appreciate ) could purchase currency futures contracts for that currency. 3. Covered interest arbitrage involves the short-term investment in a foreign currency that is covered by a ( forward contract ) to sell that currency when the investment matures. 4. （Appreciation/ Revalue ）of RMB reduces inflows since the foreign demand for our goods is reduced and foreign competition is increased. 5. ( PPP) suggests a relationship between the inflation differential of two countries and the percentage change in the spot exchange rate over time. 6. IFE is based on nominal interest rate ( differentials ), which are influenced by expected inflation. 7. Transaction exposure is a subset of economic exposure. Economic exposure includes any form by which the firm’s ( value ) will be affected. 8. The option writer is obligated to buy the underlying commodity at a stated price if a ( put option ) is exercised 9. There are three types of long-term international bonds. They are Global bonds , ( eurobonds ) and ( foreign bonds ). 10. Any good secondary market for finance instruments must have an efficient clearing system. Most Eurobonds are cleared through either ( Euroclear ) or Cedel. PartⅢ:Questions and Calculations (60%)过程正确结果计算错误扣2分 1. Assume the following information: A Bank B Bank Bid price of Canadian dollar $0.802 $0.796 Ask price of Canadian dollar $0.808 $0.800 Given this information, is locational arbitrage possible? If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you had $1,000,000 to use. (5%) ANSWER: Y es! One could purchase New Zealand dollars at Y Bank for $.80 and sell them to X Bank for $.802. With $1 million available, 1.25 million New Zealand dollars could be purchased at Y Bank. These New Zealand dollars could then be sold to X Bank for $1,002,500, thereby generating a profit of $2,500. 2. Assume that the spot exchange rate of the British pound is $1.90. How will this spot rate adjust in two
金融英语证书考试（FECT ）Exerci ses I. Which of the following is not a function of money ? ______ A. To act as a medium of excha nge B. To act as a unit of acco unt C. To act as a store of value D. To provide a double coin cide nee of wants E. To act as a mea ns of payme nt 2. ______________________________________________ T he price in the foreig n excha nge market is called ___________________________________ A. the trade surplus B. the excha nge rate C. the money price D. the curre ncy rate 3. _____________________________ Market risk refers to the risk of A. fi nan cial prices fluctuati ons B. default
C. fraud D. deferred payme nts 4. Which of the follow ing is not among the gen erally accepted acco un ti ng principles ? ________ 。 A. Cash basis B. Prude nee C. C on siste ncy D. Go ing concern E. M oney measureme nt。 5. What is a documentary letter of credit ? ______ 。 A. A conditional bank undertaking to pay an exporter on production of stipulated docume ntati on B. A method of lending aga inst docume ntary security C. A n intern ati onal trade settleme nt system biased in favour of importers D. All of the above 6. Holdi ng a group of assets reduces risk as long as the assets ____ 。 A. are perfectly correlated
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. Banks serves as ( principle depository) of liquid funds for the public. 2. (The banking sector) provides the indispensible national payriient mechanism for the development of modem financial and business system. 3. Which of the following is not a policy banks (The Industrial and Commercial Bank of China) 4. The central banking system began taking shape in (1984) 5.What is amount of the total assets of the banking sector at the end of 2005(RMB37. 47 billion) 6.The Basel Accord sets minimum capital ratio requirements for internationally active banks（of 4% tier one capital and 8 to total capital）in relation to risk-weighted assets. 7.One objective of banking supervision is to prot ect depositors’ funds and(if a bank should fail) to minimize the losses to be absorbed by the deposit insurance fund. 8.The ratio of liquid assets to liquid liabilities of a commercial bank shall not fall short of (25) percent. 9..Market risk refers to the risk of (financial prices fluctuation) 10.If a major borrower gets in trouble because of inability to (return) a loan the bank may find itself in serious trouble as well. 11.(Indirect) tell us how many units of the foreign currency required to buy one unit of the domestic turrency. 12.If an importer who buys goods today has to pay for the goods in a foreign currency one month from today , it may be convenient to buy the currency now for delivery in a month. The transaction is called (a forward) 13.Suppose we make a week-end swap on January 10,2005 (Monday) , then the spot value date is set on (January 12 , 2005) , the forward value date is set on (January 19 , 2005) 14.(The value date）is the date on which the money must be paid to the parties involved in spot transactio 15.If we have a quote of 737. 62Z740. 58 for $ZT ,（the first rate is the buying rate for the dollar） 16.(An audit) is the independent examination that ensures the reliability of the accounting reports submitted by management to investor , creditor ,and other outside the business. 17.GAAP stands for (General Accept Accounting Principles) 18.which of the following is not included in the accounting concepts and principles ? (General Accepted Accounting Principles). https://www.doczj.com/doc/c318220234.html,ers of financial statements are interested in liquidity because (businesses may be difficult to have enough working capital) 20.Theliability section , together with (owner's equity) , indicates how an entity financed. 21.Investment banks’ role in the financial markets involves (telling and distributing new stocks and bonds). 22.What does IPO stand for ? (Initial Public Offering) 23.A key difference between bonds and stocks is that stocks (represent ownemhip) 24.Credlt card customer (are given a credit limit on the credit card account and can buy goods and services up to this amount) 25.when a bank holds valuables and documents for its customer in safe custody ,it has to take are of the property ,and has a (bailor—bailee) relationship with that customer. 26. In a syndicated loan , (the lead bank) handles the negotiations with the borrower, prepares the relevant documentation and disbumes the full amount of the loan to the borrower. 27. A (bridging) loan is a loan agreement under which finance is required in connection with the