金融英语习题.docx

1、金融英语习题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 d

2、efaulting 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

3、 _. 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 meas

4、ures 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 risk5. What information would you find in a statement of cash flows that you would not be abl

5、e to get from the other two primary financial statements？ _. A. Cash provided by or used in financing activitiesB. Cash balance at the end of the 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 o

6、f 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， liabil

7、ity， and owners equity accounts are recorded by debits B. decreases in asset and liability accounts are recorded by credits C. increases in asset and owners equity accounts are recorded by debitsD. decreases in liability and owners equity accounts are recorded by debits8. Individuals will accept the

8、 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 countrys currency appreciates， the countrys goods abroad become _ and fore

9、ign 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 performance bond. What is the most likely course of action？ _. A. It ask

10、s its bank to issue a tender bond which can be converted into a performance bond B. It gives up its bid C. It consults its bank about issuing a standby letter of credit D. It asks its bank to issue a performance bond 11. ABC Co. Ltd. has a $3 500 account receivable from XYZ Store. On March 20， XYZ m

11、akes a partial payment of $2 100 to ABC. The journal entry made on Mdrch 20 by ABC to record this transaction includes _. A. a debit to the cash received account of $2 100 B. a credit to the Accounts Receivable account of $2 100 C. a debit to the Cash account of $1 400 D. a debit to the Accounts Rec

12、eivable account of $1 400 12. 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-

13、exchange market 13. Which of the following is not a form of countertrade？ _. A. Counterpurchase B. Buy-back C. Offset D. Balance trade 14. A credit to a revenue account _. A. decreases revenues B. increases equity C. decreases equity D. increases assets 15. If the government guaranteed that anyone w

14、ishing a job would be provided one， the likely result would be _. A. massive layoffs B. an increase in the money supply C. an increase in inflationary expectations D. the development of a barter system 17. Economists assume that most people take risks _. A. because doing so is exciting B. only when

15、they have no riskless alternative C. very infrequently D. if they are compensated for taking the risks 18. The Phillips Curve shows the relationship between _. A. aggregate demand and aggregate supply B. interest rates and inflation C. recessions and boomsD. inflation and the unemployment rate 19. I

16、n a fixed exchange rate system， speculative selling of a currency is based on anticipation of . A. appreciation B. devaluation C. a foreign trade surplus D. interest rate increase 20. A collecting bank is employed by _. A. the principal B. the remitting bank C. the drawer D. the drawee， who is its c

17、ustomer1. What are the expected returns for Stocks X and Y respectively？ _.A. 20% and 10% B. 18% and 12%C. 20% and 11% D. 18% and 5%2. Which of the following payment terms eliminates the exchange risk， assuming the exporter invoices in foreign currency？ _.A. Confirmed irrevocable documentary creditB

18、. Open accountC. Documentary collection D/A D. None of the above3. ABC Co. Ltd. purchased a car for $ 12 000， making a down payment of $5 000 cash and signing a $7 000 note payable due in 60 days. Which of the following is not correct？ _.A. From the viewpoint of a shortterm creditor， this transactio

19、n makes the business less solventB. Total liabilities increased by $7 000C. Total assets increased by $12 000D. This transaction had no immediate effect on the owners equity in the business4. Which of the following terms of payment will entirely eliminate country risk？ _.A. Revocable documentary cre

20、ditsB. Confirmed Irrevocable documentary credits C. Documentary collection D/PD. Documentary collection D/A5. The expiry date of a documentary credit is Sunday， 24 February， and documents have to be A presented to you. Which of the following is an acceptable presentation？ _.A. Presentation to you on

21、 Monday 25 February with the bill of lading dated 25 FebruaryB. Presentation on Monday 25 February with the bill of lading dated Sunday 24 FebruaryC. Presentation on Tuesday 26 February with the bill of lading dated Sunday 24 FebruaryD. Presentation on Friday 22 February with the bill of lading date

22、d Sunday 29 January6. What are the standard deviations of returns on Stocks X and Y respectively？ _.A. 15% and 26% B. 24% and 13%C. 20% and 4% D. 28% and 8%7. Who makes the first presentation of documents under a transferable credit？ _.A. Applicant B. First beneficiaryC. Second beneficiary D. None o

23、f the above8. A transaction caused a $10 000 decrease in both total assets and total liabilities. This transaction could have been _.A. repayment of a $ 10 000 bank loan B. an asset with a cost of $10000 was destroyed by fireC. purchase of a delivery truck for $10 000 cashD. collection of a $10 000

24、account receivable9. Money ceases to serve as an effective store of value when _.A. the government runs large deficits B. the unemployment rate is very highC. productivity in the economy declinesD. rapid inflation occurs10. An indication that the money supply is greater than the desirable amount wou

25、ld be .A. insufficient spending and excessive saving B. deflationC. inadequate spending and rising unemploymentD. rising wages and prices 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 accountC. To act as a store of valueD. To provide

26、 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. defaultC. fraud D. deferr

27、ed 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 stipul

28、ated documentation B. A method of lending against documentary securityC. An international trade settlement system biased in favour of importersD. All of the above 6. Holding a group of assets reduces risk as long as the assets _.A. are perfectly correlated B. are completely independentC. do not have

29、 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. asset8. What function is money serving when you buy a ticket to a movie？ _

30、.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 B. supply of sterling will increase

31、， demand for sterling will rise， and the exchange rate may or may not increaseC. supply of sterling will fall， demand for sterling will increase， and the exchange rate will riseD. supply of sterling will fall， demand for sterling will fall， and the exchange rate may or may not fall 10. The documentary collection provides the seller with a greater degree of protection than shipping on _.A. open account B. banks letter of guaranteeC. bankers draft D. documentary credit 11. Which of t