金融英语证书考试修订稿

金融英语证书考试内部编号：（YUUT-TBBY-MMUT-URRUY-UOOY-DBUYI-0128）

金融英语证书考试（FECT）Exercises-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

demand

unit of account

foreigners expect that the future price of sterling will be lower， the ______。

of sterling will increase， demand for sterling will fall， and the

exchange rate will fall

of sterling will increase， demand for sterling will rise， and the

exchange rate may or may not increase

of sterling will fall， demand for sterling will increase， and the exchange rate will rise

of sterling will fall， demand for sterling will fall， and the exchange rate may or may not fall

documentary collection provides the seller with a greater degree of protection than shipping on ______。

account

's letter of guarantee

's draft

credit

of the following statements is not true of central banks ______。

pay the government's salaries

always undertake the regulation of the banking system

are always the lender of last resort

of the above

GBP/USD rate goes from to ， we say the dollar ______。

by %

by %

by %

by %

to diversification principle in investment， suppose you invest Stock X and Stock Y with equal funds， which of the following is not true

______。

X and Y are totally independent with each other， the risk of the portfolio is reduced

X and Y are perfectly negatively correlated， the risk of the portfolio is perfectly offset

X and Y are perfectly positively correlated， the risk of the portfolio is neither reduced nor increased

X and Y are perfectly negatively correlated， the risk of the portfolio is neither reduced nor increased

are four main methods of securing payment in international trade：

（1） payment under documentary credit

（2） open account

（3） collection， that is document against payment or acceptance of a bill of exchange

（4） payment in advance

From an exporter's point of view， the order of preference is

______。

A.（4），（2），（3），（1）

B.（4），（1），（3），（2）

C.（4），（3），（1），（2）

D.（2），（4），（1），（3）

main liability on a bank balance sheet is ______。

and reserves

and overdrafts

shows that net income for a specified period of time and how it was calculated。

income statement

capital statement

accounting statement

statement of financial condition

must the liabilities and assets of a bank be actively managed

______。

assets and liabilities are not evenly matched on the same time scale

assets and liabilities are evenly matched

the interbank market uses LIBOR

assets and liabilities can be underwritten

the expected returns of two risky assets have a perfect negative correlation， then risk 。

increased

to zero

unaffected

reduced by one-half

possible disadvantage of freely fluctuating exchange rates with no official intervention is that 。

nations would experience continual deficits

exchange rates may experience wide and frequent fluctuations

would no longer be able to undertake domestic policies designed to achieve and maintain full employment

would need a larger supply of international reserves than

otherwise

are your GBP/USD position and the average rate if you sell ￡4m at buy ￡5m at and sell $5m at

￡2 058 long $3 370 000 at

￡5 941 short $9710 000 at

￡5 941 long $9 710 000 at

￡4 058 short $6 630 000 at

correlation coefficient of + means two stocks are ______。

negatively correlated

the market beta

to the market beta

positively correlated

percentage analysis of increases and decreases in corresponding items in comparative financial statements is called ______。

analysis

analysis

analysis

analysis

is the name of the document which can make a buyer feel confident that goods are of a certain standard

______。

certificate

invoice

policy

of origin

financial intermediaries by "borrowing short and lending long" find themselves in difficult financial situations because 。

rates are falling

rates are rising

increase too rapidly

rates rise relative to rates of their holdings

rates rise more sharply than short-term rates

were written ______。

the International Chamber of Commerce

the United Nations Convention for the International Sale of Goods （Vienna Convention ）

the Kyoto Protocols as adopted in 2000

purpose of keeping account is to 。

whether the business has made a profit or a loss

out why the business has lost money

how much has been spent

out why the business cannot fulfil its commitments

reserves are 20 percent， then the multiplier effect will be

______ times， so the original deposit of RMB40 000 can create up to ______ of new deposits。

……RMB200000

……RMB120000

……RMB80000

……RMB20000

Company is the beneficiary of a confirmed irrevocable letter of bank （ s ） will assure the company that it will be paid。

tender includes 。

and coins

only

only

， coins and checks

following are the basic functions of a bill of lading except to act as ______。

receipt for the goods from the shipping company to the exporter document of title for goods being shipped overseas

certificate of origin， which certifies that the goods were produced in a particular country

of the carriage contract between the exporter and the carrier

foreign trade deficits under a flexible exchange rate system usually lead to ______。

in the domestic economy

of future devaluation

interest rates

imports

additional amount paid in buying or selling a currency at a given future date is called 。

manage their assets considering ______。

optimum combination of the above

is the function of the book-keeping system in bank accounting

______。

prove that all the day's transactions have gone through for the right amount

prove that all the day's transactions have all been posted to the right account

prove that the fresh balance of those accounts is correct after recording the transactions

of the above

risk that is specific to individual stocks is called ______。

risk

risk

risk

risk

main objective of the Exchange Equalization Account is to ______。

undue fluctuation in the exchange value of one country's own currency against other currencies

the rate of inflation

that notes and coins continue to be acceptable as a medium of exchange

the exchange of payments between banks

can you prove that no transactions are missing or wrong at the end of the day

______。

is no other way than have these transactions reposted to the proper entries

can examine all the transactions carefully and find the wrong records

can balance the total debits and the total credits by calculating them again

can do that by checking the total debits and the total credits to see whether they are in state of balance

_____。

as the critical function of a medium of exchange

trade in goods and services

the inefficiencies of barter

of the above

dealers buy currency forward but do not sell forward at the same time， their position is known as 。

if clearly incorporated into the contract of sale

International shipments beyond a certain tonnage

international shipments under the Uniform Commercial Code

all international shipments of goods

which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract

______。

of goods priced in a foreign currency

of goods priced in RMB

of goods priced in RMB

of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract

address ______。

risks of loss between the parties

of contract

rights

of ship used

of the following is or was an example of representative full-bodied money

______。

money

account

certificate

deposit

associated with investing in foreign countries are the following except ______。

risk

rate risk

risk

risk

exporter sells goods to a customer abroad on FOB and on CIF is responsible for the freight charges in each

______。

； Exporter

； Importer

； Importer

； Exporter

risk refers to the possibility that a borrower may ______。

unable to repay the principal on his loan

unable to make the interest payments on his loan

bankrupt of the above

is the reserve requirement

______。

requirement of a bank to deposit a percentage of money

requirement for deposits in cash

percentage of a bank's deposits in the form of cash reserves

requirement for cash reserves

draft is like a check that can be endorsed but it isn't a title to goods， like ______。

bill of lading

inspection certificate

certificate of origin

insurance certificate

______。

a general economic term for buying something where it is cheap and selling it where it is dear

exchange rates consistent across markets

been outlawed by the International Monetary Fund

occur where there is a forward exchange market

A and B

is the purpose of comparing the ledger entries with the documents ______。

prove that all the transactions have made for the right amounts prove that all the accounts have been posted correctly

check the number of all the debits and credits

post the right is Dollar Cost Averaging

______。

brokerage account that gives investors cheap trades

idea that prices tend to rise over the long term

stocks that are below average in value

flat quarterly mutual fund fee averaged throughout the year

strategy of investing money on a regular basis to take advantage of market fluctuations

a Chinese bank's point of view， the currency account which it maintains abroad is known as______， while a RMB account operated in China for a foreign bank is termed ______。

vostro account…… a nostro account

vostro account…a mirror account

mirror account…a nostro account

nostro account…… a vostro account

FOB terms the bill of lading would state goods ______。

on board， freight payable at destination

on board， freight paid

for shipment， freight paid

for shipment， freight payable at destination

liabilities of the bank as shown in its balance sheet represent the ______ which it uses in its business。

of the funds

capital

to customers

payments and other messages are often sent through an international computer network called ______。

levels of uncertainty （risk） are associated with 。

options

potential returns

potential returns

securities would appear on a commercial bank's balance sheet as ______。

asset

of net worth

liability

major problem with a fixed exchange rate system is that when countries run foreign trade deficits， ______。

is no self-correcting mechanism

values become unstable

value of the reserve currency declines

inflation increases

a particular economy banks are required to keep 25 percent of all deposits in the form of reserves； this gives a credit-creation multiplier of ______。

of the money supply and financial markets is referred to as

______。

policy

policy

policy

policy a country runs a foreign trade deficit under a flexible foreign exchange rate system， its 。

automatically increase

automatically depreciates

automatically decline

automatically appreciates

of the following statements is not true of accounting

______。

is language of business

user of accounting includes business， government， nonprofit organizations and individuals。

is useful for decision making

is an end rather than a means to an end

term foreign exchange is best defined by the following statement：it is ______。

rate of exchange between two currencies

with currency exchange

place in which foreign currencies are exchanged

instrument such as paper currency， note， and check used to make payments between countries

is Asset Allocation

______。

assets of different types， risks， and potential returns

assets with more than one brokerage account

ability to buy mutual funds

stocks for the long term

users of financial accounting information include all of the following except 。

managers

public

is short for 。

Asset Pricing Model

Added Price Matrix

Asset Pricing Matrix

and Price Model

measures the ______。

of an asset

with which an asset can be exchanged

of an asset

and monetary reliability of an asset compared with other assets

a letter of credit transaction， the bank pays the seller against ______ which agree（s） with______。

…… the credit

…… the contract

…… the contract

……the buyer barter economy is one that does not possess

_______。