2014年金融英语考试_FECT考前试题
2014金融英语证书考试试题
FECT考前试题（Q）196376306
单选题：（该套试题为历年真题）
1. 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%
答案：A
2. Which of the following payment terms eliminates the exchange risk, assuming the exporter invoices in foreign currency? ______.
A. Confirmed irrevocable documentary credit
B. Open account
C. Documentary collection D/A
D. None of the above
答案：D
3. 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 short-term creditor, this transaction makes the business less solvent
B. Total liabilities increased by $7 000
C. Total assets increased by $12 000
D. This transaction had no immediate effect on the owner's equity in the business
答案：C
4. Which of the following terms of payment will entirely eliminate country risk? ______.
A. Revocable documentary credits
B. Confirmed Irrevocable documentary credits
C. Documentary collection D/P
D. Documentary collection D/A
答案：B
5. 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? (Assume there is no latest stated date for shipment stipulated.) ______.
A. Presentation to you on Monday 25 February with the bill of lading dated 25 February
B. Presentation on Monday 25 February with the bill of lading dated Sunday 24 February
C. Presentation on Tuesday 26 February with the bill of lading dated Sunday 24 February
D. Presentation on Friday 22 February with the bill of lading dated Sunday 29 January
答案：B
6. 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%
答案：B
7. Who makes the first presentation of documents under a transferable credit? ______.
A. Applicant
B. First beneficiary
C. Second beneficiary
D. None of the above
答案：C
8. 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 fire
C. purchase of a delivery truck for $10 000 cash
D. collection of a $10 000 account receivable
答案：A
9. Money ceases to serve as an effective store of value when ______.
A. the government runs large deficits
B. the unemployment rate is very high
C. productivity in the economy declines
D. rapid inflation occurs
答案：D
10. An indication that the money supply is greater than the desirable amount would be .
A. insufficient spending and excessive saving
B. deflation
C. inadequate spending and rising unemployment
D. rising wages and prices
答案：D。
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(原)金融专业英语(FECT)中级会计模拟试卷1(题后含答案及解析)
（原）金融专业英语（FECT）中级会计模拟试卷1(题后含答案及解析)题型有：1. SECTION ONE 2. SECTION TWOSECTION ONE Answer all questions in this section.Question 11．For purpose of recording accounting information, each company is considered to be separate from its owners and all other companies. This concerns the entity concept.A．正确B．错误正确答案：A2．In an inflation economy, the inventory ending balance recorded by FIFO method is lower than that recorded by LIFO method.A．正确B．错误正确答案：B解析：In an inflation economy, the inventory ending balance recorded by FIFO method is higher than that recorded by LIFO method.3．If the purchaser has been given a purchase allowance, the amount of allowance should be debited to purchase return account.A．正确B．错误正确答案：B解析：If the purchaser has been given a purchase allowance, the amount of allowance should be credited to purchase return account.4．In long-term construction contracts, revenue is recognized at the point of the cash collected.A．正确B．错误正确答案：B解析：In long-term construction contracts, revenue is recognized in proportion tothe contract work performed each year.5．In business charges depreciation in accounts, the accounting concept to be considered is the materiality concept.A．正确B．错误正确答案：B解析：In business charges depreciation in accounts, the accounting concept to be considered is the going concern concept.6．Cumulative preference shares have the right to accumulate dividends in a given year if they are in arrears.A．正确B．错误正确答案：AQuestion 27．If retained earnings were understated and liabilities were overstated, which of the following errors could have been the cause?A．Making the adjustment entry for depreciation expenses twice.B．Failure to record interest accrued on a note payable.C．Failure to make the adjusting entry to record revenue which had been earned but not yet billed to clients.D．Failure to record the earned portion of fees received in advance.正确答案：D8．The selected data pertain to a company at 31 December 2003 as the following:Quick Assets ＄208,000Quick ratio 2.6 to 1Current ratio 3.5 to 1Net sales for 2003 ＄1,800,000Cost of good sold for 2003 ＄990,000Average total assets for 2003 ＄1,200,000The company’s inventory balance at 31 December 2003 is ______.A．＄72,000.B．＄186,990.C．＄231,111.D．＄68,000.正确答案：A9．An accrued expense can best be described as an amount ______.A．paid and currently matched with earnings.B．paid and not currently matched with earnings.C．not paid but currently matched with earnings.D．None of the above.正确答案：C10．Mr. Wong paid ＄3,000 in advance for insurance on 1 December 2001 and debited it to Insurance Expense. No entries were made subsequently in 2001 or in 200The accounting period ends on December 3As a result of this error ______.A．2001 income was understated ＄2,000.B．2002 income was understated ＄2,000.C．2001 income was understated ＄3,000.D．2002 income was understated ＄3,000.正确答案：A11．Mr. Ting’s net cash inflow from operating activities for the year ending 30 June is＄123,000. The following adjustments were included in the supplementary schedule reconciling cash flow from operating activities with net income:Depreciation ＄38,000Increase in net accounts receivable 31,000Decrease inventory 27,000Increase in accounts payable 48,000Increase in interest payable 12,000Net income is ______.A．＄29,000.B．＄41,000.C．＄79,000.D．＄217,000.正确答案：A12．Which of the following is not a characteristic of the accounting for non-trading organizations?A．They normally provide Receipts and Payments Accounts.B．They have Accumulated Fund, which is more or less the same as capital.C．It is more common to keep all records on a single entry basis.D．They must keep books on a double-entry system.正确答案：D13．Mr. Wong is a small company. And it failed to record every transaction. Now you are provided with the following information: capital at 1 January 2003 is ＄30,000, capital at 31 December 2003 is ＄31,000. During 2003, drawings are ＄2,000. Then the net profit for the year 2003 is ______.A．＄3,000.B．＄-1,000.C．＄1,000.D．＄-3,000.正确答案：A14．At the beginning of a given period, Mr. Ting’s inventory was all finished goods. The volume is 600. At file end of this period, 2,000 are completed units and 600 are partly completed. The partly completed units were deemed to be 50% complete. The manufacturing cost is ＄30,000. Then cost per unit is ______.A．＄17.64B．＄13.04C．＄10.34D．＄15正确答案：A15．Basic accounting assumptions include the following except ______.A．going concern.B．monetary unit.C．consistency.D．business entity.正确答案：C16．At 1 January 2003, the balance of Billy Company’s Provision for Bad Debts is ＄5,000. At 31 December 2003, the balance of trade debtors is ＄45,000. Billy Company’s provision for bad debts equals to 10% of trade debtors. During the year 2003, the bad debt written off is＄2,000. Then Bad Debt expenses of Billy Company this year must be ______.A．＄2,500.B．＄1,500.C．＄-1,500.D．＄-2,500.正确答案：BQuestion 317．As at 31 December Year 8, Sam Ltd’s cash book showed a debit balance of ＄1,055, although he had an overdraft of ＄3,511. The discrepancy is due to the following:—Bank interest of ＄10 had been included in the bank statement, but was not recorded in the cash book.—A cheque for ＄2,300 was banked on 28 December and correctly entered in the cash book. Unfortunately the customer had forgotten to sign the cheque and it was subsequently dishonored and returned by the bank on 31 December. The book-keeper recorded the return in the cash book on 3 January Year 9.—The bank had incorrectly deducted ＄907 from Sam’s account for a cheque drawn by May.—A refund of ＄85 received from a supplier and banked on 2 October had been recorded in the cash book as a receipt of ＄58.—A cheque for ＄450 issued on 29 December as a refund to a customer had been recorded as a receipt in the cash book. It has not been presented for payment by 31 December.—The book-keeper had intended to desposit ＄2,750 in the bank on 31 December and therefore recorded it as a receipt in the cash book on that date. Due to a delay, the amount was not banked until 3 January Year 9.—An amount of ＄350 paid directly into the bank by a customer had not been recorded in the cash book.—The cash book receipts had been undercast by ＄800.Required:(a)Calculate the corrected cash book balance on 31 December Year 8.(b)Prepare a bank reconciliation statement for Sam showing the bank overdraft which appeared on his bank statement on that date.正确答案：(a)Corrected Cash Book Balance:＄＄Original balance 1,055Add: Refund wrongly entered 27Direct banking 350Undercasting 800 1,1772,232Less: Bank interest 10Dishonored cheque 2,300Entered on wrong side 950Not deposited 2,750 6,0103,778 O/D(b)Bank Reconciliation Statement as at 31 December Year 8:＄＄Balance per bank statement 3,511 O/DLess: Unpresented chequesNovember 190December 450 6402,871 O/DAdd: Error by bank 9073,778 O/DQuestion 418．1. Ming’s Company produces CD appliances. The following is the cost information for the year ended 31 December 2003.1. Material put into production was valued at ＄360,000 and ＄80,000 of which was used as supplies.2. The payroll records showed that total labor cost was ＄350,000, ＄68,000 of which was the costs of foremen and storekeeping men.3. Factory power and utilities were at a total cost of ＄90,000.4. Selling and administration expenses totaled ＄100,000.5. There was no opening and closing work-in-progress. The production records indicated that 20,000 units were completed in the year.Required:Calculate the following:(a)Prime cost(b)Conversion cost(c)Cost of goods manufactured(d)Unit production cost正确答案：(a)Prime cost =＄(360,000-80,000)+＄(350,000-68,000) =＄562,000(b)Conversion cost =＄(350,000-68,000)+＄80,000+＄68,000+＄90,000=＄520,000(c)Cost of goods manufactured =＄(360,000-80,000)+＄520,000 =＄800,000(d)Unit production cost = Cost of goods manufactured / completed units= ＄800,000 / 20,000 = ＄40 per unitQuestion 519．Mr. Wong is a small manufacturer of bicycles in Hong Kong. His business incurred the following costs for the year ended 31 December 2003.＄Materials (100% variable) 300,000Labor (25% variable) 200,000Selling & distribution cost (20% variable) 50,000Other costs (fixed) 170,000 720,000Normally, the business sells3,000 units at ＄300 each:Required:(a)Calculate the breakeven point in units and dollar sales.(b)Calculate the contribution to sales ratio.(c)Calculate the margin of safety in percentage.正确答案：(a) Total variable costs:＄Materials 300,000Labor (＄200,000×25%) 50,000Selling & distribution cost (＄50,000×20% ) 10,000360,000Variable cost per unit =＄360,000 / 3,000 =＄120Contribution per unit =Selling price - Variable cost =＄300 -＄120 =＄180Breakeven point (in units) = Fixed cost / Contribution per unit= (＄200,000×75% +＄50,000×80% +＄170,000)/＄180= ＄360,000/＄180= 2,000 unitsBreakeven point (dollars sales) = Breakeven units ×Selling price per unit= 2,000×＄300= ＄600,000(b) the contribution to sales ratio = ＄180 / ＄300×100% = 60%(c) the margin of safety = (Current sales - breakeven sales) / Current sales×100%= (3,000×＄300-＄600,000)/＄900,000×100%= 33.3%Question 620．If a company had 120,000, 4% preference shares of ＄1 each and 250,000 ordinary shares of ＄1 each, then the dividends would be payable as follows:Year 1 Year 2 Year 3 Year 4 Year 5＄＄＄＄＄Total Profits appropriated for dividends 7,000 3,000 20,000 4,000 5,000Required:(a)If the preference shares are cumulative, non-participating, calculate the preference dividends and ordinary dividends in each year.(b)If the preference shares are cumulative, participating, calculate the preference dividends and ordinary dividends in each year.正确答案：(a)If the preference shares are cumulative, non-participatingYear 1 Year 2 Year 3 Year 4 Year 5＄＄＄＄＄Preference Dividends (4%) 4,800 3,000 6,600 4,000 5,000Ordinary Dividends 2,200 —13,400 ——(b)If the preference shares is cumulative, participatingYear 1 Year 2 Year 3 Year 4 Year 5＄＄＄＄＄Preference Dividends (4%) 4,800 3,000 1,800 4,000 200(4%) (2.5%) (in arrears) (3.33%) (in arrears)4,800 4,800(4%) (4%)1,103 —(0.92%) 5,0005,903Ordinary Dividends 2,200 —10,000 ——(0.88%) (4%)2,297(0.92%)12,297SECTION TWO Answer any two questions in this section.Question 721．After the first year of trading, Mr. Wong provided you the following list of ledger balances as at 31 December 2003:＄Stock, 1 January 2003 3,300Stock, 31 December 2003 25,200Sales 160,000Purchases 100,000Premises 142,600Fixtures & Fittings 45,200Motor Vehicles 42,500Returns Inwards 1,500Returns Outwards 2,600Carriage Inwards 1,000Carriage Outwards 250Debtors 30,500Creditors 41,500Wages 17,495Rent and Rates 3,900Lighting & Heating 18,455Insurance 10,600Motor Vehicle Expenses 2,400Cash at Bank 4,700Bank Loan 29,000LoanInterest 2,300Drawing 6,400You are further given the following information:1.Wages owing are ＄550.2.Prepaid rent is ＄600.3.Depreciation of Fixtures & Fittings is 10% per annum on cost.4.Depreciation of Premises is based on a 10-year lease.5.Depreciation of Motor Vehicles is 50% life using the reducing balance method.6.Stock taken for Mr. Wong’s own use is ＄1,100. Such a transaction has not yet been recorded.7.It is estimated that one-third of the driving time is for private purposes.8.5% of the outstanding accounts at the year end is thought to be uncollectible.9.There was no error made in the recording of business transactions for the year.Required:(a)Prepare a Trading and Profit and Loss Account for the year ended 31 December 2003.(b)Prepare a Balance Sheet as at 31 December 2003.(c)Explain the meaning and the significance of Working Capital.正确答案：(a) Mr. Wong’s BusinessTrading and Profit and Loss Account for the year ended 31 December 2003＄＄＄Sales 160,000Less: Returns inwards 1,500Net sales 158,500Less: Cost of goods soldOpening stock 3,300Purchases 100,000Carriage inwards 1,000101,000Less: Returns outwards 2,60098,400Less: Stock drawing 1,100 97,300100,600Less: Closing stock 25,200 75,400Gross Profit 83,100Less: ExpensesWages (17,495 + 550) 18,045Rent and Rates (3,900-600) 3,300Lighting & Heating 18,455Insurance 10,600Motor Vehicle Expenses (2,400×2/3) 1,600Loan Interest 2,300Carriage Outwards 250Bad debts 1,525Depreciation:—Premises (142,600×1/10) 14,260—Fixtures & Fittings (45,200×10%) 4,520—Motor Vehicle (42,500×50%) 21,250 96,105(13,005)(b) Mr. Wong’s BusinessBalance Sheet as at 31 December 2003＄＄＄Cost Dep NBVFixed AssetsPremises 142,600 14,260 128,340Fixtures & Fittings 45,200 4,520 40,680Motor vehicles 42,500 21,250 21,250230,300 40,030 190,270Current AssetsStock 25,200Debtors 30,500Less: Provision for bad debts 1,525 28,975Prepaid rent 600Cash at bank 4,70059,475Less: Current LiabilitiesCreditors 41,500Accrued wages 550 42,050Net Current Assets 17,425Total Net Assets 207,695Represented ByCapital (Workings 1) 200,000Less: Net Loss 13,005186,995Less: Drawings (6,400+1,100+1/3×2,400) 8,300178,695Bank loan 29,000207,695Workings 1: The initial capital contributed by Mr. Wong is determined by drawing up the following trial balance:Dr Cr＄＄Stock 3,300Sales 160,000Purchases 100,000Premises 142,600Fixtures & Fittings 45,200Motor Vehicles 42,500Returns Inwards 1,500Returns Outwards 2,600Carriage Inwards 1,000Carriage Outwards 250Debtors 30,500Creditors 41,500Wages 17,495Rent and Rates 3,900Lighting & Heating 18,455Insurance 10,600Motor Vehicle Expenses 2,400Cash at Bank 4,700Bank Loan 29,000Loan Interest 2,300Drawings 6,400Capital (Balance Figure) _____ 200,000433,100 433,100(c) Working capital is defined as the excess of current assets over current liabilities. It is one of the important financial indicators of the liquidity position of a business entity. A positive working capital position means that a business is able to manage its affairs to such a state that current assets are sufficiently ready to meet the requirement of settling the debts which are to be due within one year. In other words, a business is to be solvent in the short term if there is a positive working capital. This indicates that the liquidity position of a business is financially sound.However, a positive working capital does not necessarily indicate that the business is solvent in the long term or in a forced liquidation.Question 822．The following are the summarized financial statements of Mr. Wong’s business for the years ended 31 December 2002 and 2003 respectively.Balance Sheets as at 31 December2002 2003＄＄Fixed Assets (net book value) 22,500 18,000Current Assets:Stock 10,500 27,000Debtors 18,000 54,000Bank 1,500 —Current liabilities:Creditors (9,000) (22,500)Bank overdraft —(15,000) 43,500 61,500Capital at 1 January 18,000 43,500Net Profit for the year 45,000 52,500Drawings (19,500) (34,500) 43,500 61,500Profit and Loss AccountSales 180,000 300,000Cost of sales 120,000 225,000Gross profit 60,000 75,000Operating expenses 15,000 22,500Net profit 45,000 52,500Additional information is given as follows:1. All sales were on credit basis.2. There were no purchase or disposals of fixed assets during the year.3. The stock value and debtor balance as at 31 December 2001 were ＄15,000 and ＄30,000 respectively.Required:(a)Calculate the following financial ratios for years both 2002 and 2003:(i)Gross profit margin(ii)Net profit margin(iii)Return on capital employed(iv)Current ratio(v)Acid test ratio(vi)Stock turnover period (days)(vii)Debtors collection period (days)(viii)Gearing ratio(b)Why is the gearing ratio important to a banker in making a lending decision?(c)Based on the financial ratios in (a), comment on the profitability, liquidity and management efficiency of Mr. Wong’s business.正确答案：(a) (i) Gross profit margin = Gross profit / Sales×100%year 2002: = 60,000/180,000×100% = 33.3%year 2003: = 75,000/300,000×100% = 25%(ii) Net profit margin = Net profit/Sales×100%year 2002: = 45,000/180,000×100% = 25%year 2003: = 52,500/300,000×100% = 17.5%(iii) Return on capital employed = Net profit / Capital employed×100%year 2002: = 45,000/43,500×100% = 103.4%year 2003: = 52,500/61,500×100% = 85.4%(iv) Current ratio = Current assets / Current liabilitiesyear 2002: = 30,000/9,000 = 3.33 to 1year 2003: = 81,000/37,500 = 2.16 to 1(v) Acid test ratio = (Current assets- Stocks) / Current liabilitiesyear 2002: = 19,500/9,000 = 2.17 to 1year 2003: = 54,000/37,500 = 1.44 to 1(vi) Stock turnover period (days) = 365×Average Stock / Cost of salesyear 2002: = 365×0.5×(15,000+10,500)/120,000 = 39 daysyear 2003: = 365×0.5×(10,500+27,000)/225,000 = 30 days(vii) Debtors collection period (days) = 365×Average debtors/Salesyear 2002: = 365×0.5×(30,000+18,000)/180,000 = 49 daysyear 2003: = 365×0.5×(18,000+54,000)/300,000 = 44 days(viii) Gearing ratio = Long-term loan/(Long-term loan + Shareholders’ fund)×100%year 2002: = 0year 2003: = 0(b) Gearing ratio is an expression of the way companies are financed and the proportion of capital provided by risk taking shareholders and by lenders to the company.This ratio assists the bankers in their loan lending decisions. Basically, gearing ratio is an indication of the risk to be undertaken by the ordinary shareholders because of the interest obligation of the long-term financial position, particularly thecash flows. A company’s borrowing power will be correspondingly lower when there is an increase in the geared ratio.(c) The following points should be noted:Profitability —Decrease in gross profit margin, net profit margin and return on capital employed.—Although turnover is improved, profit margins am decreased. This may be due to inefficient control on operating expenses and/or less effective marketing strategy.Liquidity—Both current ratio and acid test ratio indicate that the liquidity position is worsening.—It may be due to piling up of inventory and substantial outstanding debtors amounts.Management Efficiency—The credit control policy has been tightened up as the debtors’ collection period has been reduced by 5 days.—The stock control has also been improved as the stock turnover becomes faster.Question 923．The following ledger balances are extracted from the books of White Trading Company as at 31 December 2003:＄Bad debts 750Bank overdraft 1,650Capital 100,000Carriage inwards 3,500Carriage outwards 1,400Creditors 18,500Debenture interest 900Debtors 12,500Discounts allowed 1,300Discounts received 1,500Drawings 24,900Equipment (at cost) 150,000Insurance 1,000Lighting 5,000Motor Van 40,000Provision for bad debts 1,100Provision for depreciation—Equipment 90,000—Motor Van 18,000Purchases 1,000,000Rent & rates 110,000Salaries and wages 210,000Sales 1,400,000Stock 1 January 2003 90,000Returns inwards 13,000Returns outwards 13,5009% 1998-2008 10-year Debenture 20,000Additional information relevant to the year ended 31 December 2003 is as follows:1. Closing stock at 31 December 2003 ＄115,0002. Accrued wages ＄20,0003. Prepaid insurance ＄2004. Outstanding telephone bill ＄2005. Outstanding rent ＄10,0006. Removal expenses of ＄950 are still outstanding because of dispute and they have not yet been entered into the accounting records.7. The depreciation policy is:(a)Equipment reducing balance method at 5% p.a(b)Motor Van: 25% p.a on cost8. It is a policy to make a provision for bad debts at 4% of outstanding debtors on the balance sheet date.Required:Prepare the Trading and Profit and Loss Account for the year ended 31 December 2003.正确答案：White Trading CompanyTrading and Profit and Loss Account for the year ended 31 December 2003＄＄＄Sales 1,400,000Less: Returns inwards 13,000 1,387,000Less: Cost of goods soldOpening stock 90,000Purchases 1,000,000Add: Carriage inwards 3,500Less: Returns outwards (13,500) 990,0001,080,000Less: Closing stock 115,000 965,000Gross Profit 422,000Other revenues:Discounts received 1,500Bad debts recovery 950424,450Less: ExpensesSalaries and wages 230,000(210,000 + 20,000)Rent & rates 120,000(110,000 + 10,000)Lighting 5,000Insurance (1,000 - 200) 800Removal expenses 950Bank services charges 160Telephone 200Discount allowed 1,300Carriage outwards 1,400Bad debts (750 + 25,000 ×650- 1,100)Debenture interest 2,700(900 + 20,000 ×9%)Depreciation-equipment 3,000 366,160(150,000 - 90,000)×5%Net Profit 58,290。
(原)金融专业英语(FECT)中级银行业务模拟试卷3(题后含答案及解析)
（原）金融专业英语（FECT）中级银行业务模拟试卷3(题后含答案及解析)题型有：1. SECTION ONE 2. SECTION TWO 3. SECTION THREE 4. SECTION ROUR 5. SECTION FIVESECTION ONE (Compulsory) Now listen to a short conversation and a passage on the tape. This will be played once on the recorder. You may make notes while you are listening, but you should not answer any questions until the reading is over.Qustion 1听力原文：Personal loanA: Good afternoon, Sir, at your service.B: Oh, thank you. My name is Robert and I’d like to make some enquiries concerning mortgage loan facilities offered by your bank. Am I in the right place?A: Yes, definitely Sir, please take a seat and let me get hold of a mortgage loan application form. Might I know some details about the property you intend to buy?B: I decided to purchase an apartment in Sapphire Court on Stanford Road, south of our town. I have already made my down payment last week and now I am trying to get a mortgage loan to finance the purchase.A: Oh, I see. Is Sapphire Court a new development and what is your purchase price?B: No, it’s a second hand property and as far as I know, it has been 5 years since the building was built. The owner is demanding for ＄1 million.A: You mentioned that you have paid a down payment. If you don’t mind, please tell me how much you have already paid mid the amount of loan you want from the bank?B: I have paid ＄40,000 to the landlord through the real estate agent and I will just need ＄700,000 from the bank. What interest rates shall I pay if I’m approved to get the loan?A: According to practice, we offer our customer mortgage loans on the basis of prime rate plus 1.5 %. At the moment, prime rate is 8 % so your mortgage loan, if allowed, will approximate to 9.5 %. But we might be able to offer you better terms depending on your profession. Let me first try to fill out this application form for you. Can I have your ID card please?B: But I might not want a loan from your bank if the terms are not suitable to me. Should I not fill in any form at this stage?A: Sir, the form is just to record the appropriate details and in any case, we will have to conduct an evaluation of the property before we can approve a loan. In addition, we also need your signature when we come to the very end of the form. There is absolutely no commitment at this stage and you can rest assured that the bank will not force you to take up our loan facilities if you don’t want to.B: I understand. Here is my ID card. You can take a photocopy if you need.A: Thank you Sir. Now I want the actual address and the size of the property. Do you want the repayment to spread across a 10-year schedule?B: Yes, let’s work on a 10-year repayment schedule, It’s Apartment 8A, Sapphire Court, Stanford Road South, so it’s on the 8th floor. The size is about750 square feet as the landlord said. There are 2 bed rooms, a sitting mom, a bath mom and a kitchen. The main window faces the south.A: That sounds rather attractive. We will conduct an evaluation to find out the size and other related facilities. That will give us an idea on how much we can lend. Normally we only lend to a maximum of 70% for second hand properties but if you are looking for ＄700,000, which is only about 66% of your purchase price, I believe there is high chance for the loan to be approved as the property is quite new.B: Just now you mentioned possible better terms. What exactly are they?A: Well, would you mind telling me your profession, your source of income and whether you intend to live in the apartment you purchase?B: I’m an engineer in Arrow & Moral Electronics Inc. and my annual income is 260,000 dollars. I also receive additional income for the articles I write for the magazines, amounting to ＄3,000 a month. I do plan to live in Sapphire Court myself.A: Good. Have you brought with you your salary or income tax statement?B: I’m sorry. I didn’t know you need them. But I can send them to you tomorrow.A: Yes, please. We were talking about better terms just now. For certain profession, we offer special rates and if the property is to be used by the applicant, there will also be special consideration.B: Is there any penalty if I make early repayment?A: Only for the first year. There is no penalty if you make early repayment from the 2nd year onward.B: I see. So all I need to do now is to sign the application form and wait for the bank’s advice on how much I can borrow.A: That’s correct. Now if you don’t mind you may perhaps sign here and I will contact you within the next few days. This is my business card. Meanwhile, if you have other questions, please feel free to call me.B: Thank you. Goodbye.A: Goodbye. Personal loan Banks offer personal loans to their customers either in the form of installment loans or overdrafts. Installment loans are loans granted by the bank to the customer over a fixed period of time. Depending on the needs and nature of the loans, they can be extended for a period of a few days to several years. The repayment schedule is usually fixed in amount and time. The bank usually does net have the right to demand early repayment unless the customer fails to meet the agreed repayment schedule. The most popular repayment schedule would be monthly or semi-monthly and the repayment amount would be spread in equal installments over the whole term of the loan, or as otherwise agreed by both parties. Depending on the needs of the personal customer, the purpose of the loan varies: to finance a vacation or to make tax payment. Installment loans can be secured or unsecured. A bank may, up to a certain limit, advance a loan to a customer without security. An unsecured loan usually carries a risk, thus the borrower is required to pay a higher rate of interest on the amount borrowed. However, a customer with good credit standing can negotiate a loan at a lower interest rate even though no security is given. Usually, unsecured loans are for a shorter period of time and for smaller value, loans of this type are usually offered to those who have stable incomes and are in higher income brackets. Most borrowers are in the professional classes, e.g. engineers, lecturers/ teachers, accountants, etc. A secured loan is based on security provided by the customer which is attached to the loan agreement. The security could be provided in the form of specified assets or personal guarantees.A secured loan usually carries a lower interest payment. If the borrower defaults onthe conditions of the loan, the bank could dispose of the assets given as security, keep what the customer owed or return the remainder to the customer. The most popular secured loans are those for financing the purchase of durable items. These loans usually have a period of at least a few years. An example of a longer loan with high security value is the home mortgage loan, which usually has a term for more than ten years. In a mortgage loan agreement, the asset itself is purchased by the loan and provides the security for the banker. The most popular mortgage loan is the real estate mortgage. Other mortgage loans are, for example, granted to purchase a car. This is called a chattel mortgage. When a customer is in the process of selling an asset, such as, a house and buying another one, this person needs a bridging loan, which is a loan agreement under which finance is required in connection with the sale of one asset and the purchase of another. The finance is required because the customer may be lacking money for buying a new asset before the money comes in for the asset being sold. Because the purchase occurs before the sale, the customer needs to “bridge” the gap.1．What’s the name of the man who is seeking the mortgage loan?正确答案：Robert.2．When did he pay the down payment?正确答案：Last week.3．What is the purchase price of the apartment?正确答案：＄1 million.4．Through whom did he pay to the landlord?正确答案：Through the real estate agent.5．What interest rate does he pay if he gets the loan?正确答案：9.5%.6．How many years repayment schedule do they work on?正确答案：10-year repayment schedule.7．Is there any penalty if he makes early repayment, and how early?正确答案：Yes. Only for the first year.8．Can Robert get unsecured loans if he applies for a short period of time andfor smaller value?正确答案：Yes.9．People in what kinds of professions are mentioned in the passage that are offered unsecured loans?正确答案：Engineers, lecturers, teachers, accountants.10．If a loan is granted to purchase a car, what do we call this kind of loan?正确答案：A chattel mortgage.SECTION TWO (Compulsory) Answer all questions below. Read the following statements and decide whether they are True (T) or False (F). If it is a false statement, try to re-write a correct version.Question 211．The Land Fund is now managed by the HKMA under the direction of the Financial Secretary as a combined portfolio with the Exchange Fund.A．正确B．错误正确答案：B解析：Correction: The Land Fund is now managed by the HKMA under the direction of the Financial Secretary as a separate portfolio from the Exchange Fund.12．After July 997, mainland Chinese banks applying to operate in Hongkong are still placed under the category of foreign banks.A．正确B．错误正确答案：A13．Money is a commodity itself.A．正确B．错误正确答案：A14．Credit instruments are issues by which investors supply permanent financing to firms or other borrowers including governments.A．正确正确答案：B解析：Correction: Equity instruments are issues by which investors supply permanent financing to firms or other borrowers including governments.15．Debit instructions arise when the party to whom payment is to be made demands the funds from the bank holding the debtor’s money.A．正确B．错误正确答案：B解析：Correction: Credit instructions arise when the party to whom payment is to be made demands the funds from the bank holding the debtor’s money.16．Compared with call deposits, time deposits generally have a shorter deposit time restriction, which ranges from 24 hours to one week.A．正确B．错误正确答案：B解析：Correction: Compared with time deposits, call deposits generally have a shorter deposit time restriction which ranges from 24 hours to one week.17．Under conditional lease, the company or the bank holds the title, takes the investment credits and depreciation expenses, and sells or releases the facilities when the lease expires.A．正确B．错误正确答案：B解析：Correction: Under true lease, the company or the bank holds the title, takes the investment credits and depreciation expenses, and sells or releases the facilities when the lease expires.18．A breaker’s cheque is a negotiable instrument.A．正确B．错误正确答案：B解析：Correction: A banker’s cheque may or may not be a negotiable instrument.19．Depending on the need of clients, SWIFT is the most convenient and the safest method.B．错误正确答案：A20．There is no circumstance where the “non-disclosure” rule can be broken without the consent of the customer.A．正确B．错误正确答案：B解析：Correction: There are circumstances where the “non-disclosure” rule can be broken without the consent of the customer.21．Index deposit combines the benefit of a time deposit and an investment.A．正确B．错误正确答案：A22．A negotiable instrument is a conditional Order or promise to pay a certain amount of money.A．正确B．错误正确答案：B解析：Correction: A negotiable instrument is an unconditional order or promise to pay a certain amount of money.SECTION THREE (Compulsory) Write short notes on all questions below. Note form answers me acceptable.Question 323．What are the agents required in the process of money creation through the open-market operations?正确答案： a. central bank b. banks or depository institutions c. brokers/citizens24．List any 4 most general types of bank loans and advances that banks provide to all economic sectors.正确答案： a. working capital loans b. start-up loans c. syndicatedloans d. project financing e. foreign trade financing25．What global electronic banking services can business customers obtain from banks?正确答案： a. cash management services b. trade services c. Electronic Data Interchange (EDI) Services26．List any 3 reasons for having funds moved from one country to another.正确答案： a. the settlement of debts as a result of international trade b. The transfer of funds paid out by foreign firms in file forms of dividends, profits and capital gain incomes. c. remittances to friends and relatives d. government’s aid to foreign countries e. capital flight27．Name any 3 conditions that a company, a person or group of persons need to meet in order to get a bank license in HK.正确答案： a. Minimum paid-up share capital of not less than a legally specified amount (HK ＄150 million for Licensed Banks, HK ＄100 million for Restricted Licence Banks and HK ＄25 million for Deposit-taking Companies).b. For overseas applicant, the incorporation must be in countries where the supervisory authorities have the capabilities to meet the minimum supervision standards as recommended by the Basle Committee.c. For local applicant, it has been an authorized institution for at least 10 years.d. There is also an asset requirement for Licensed Banks( US ＄16 billion for overseas and HK ＄4 billion for local applicants as at end 1997), which is revised annually.e. For local applicant, there is an additional minimum requirement for public deposit of HK＄3 million as at end 1997.28．What does the Federal Reserve Payment Services include?正确答案： a. the processing and collection of checks through Federal Reserve Banks. b. the wire transfer of funds and securities against payment. c. automated clearing house services in which Federal Reserve Banks process electronically originated credit and debit transfer. d. the large-dollar payments system called Fedwire.SECTION ROUR Answer one question only.Question 429．What is merchant banking? Why does it grow rapidly in Hong Kong?正确答案：Merchant banking: —providing financial advice and a wide range of special services for companies in the area of finance and management. —main functions in merchant banking: -act as both brokers and dealers in wide variety of securities; -provide research services and give consultancy services on all varieties of management problems; -money market instruments are traded; -underwrite the debt issue of government and manage the sale of corporate debt and stock; -serve as agents to handle the payment of dividends to shareholders; -handle mergers, acquisitions, interest rate Swaps, leveraged buyouts, and other fee-earning activities; -arrange or participate in syndicated lending/project financing; -provide advisory/underwriting services in IPO/placement. The reasons for the rapid growth of merchant banking in Hong Kong: —Institutionalization -Growing importance of institutional investors in the market place has provided a chance for the expansion of merchant banks. -Since 1990s, the main players of the stock market has shifted from individuals to the institutions. —Deregulation -Competition across borders becomes available as the relaxation of regulations in the US and some European states and the development of Euro-market. -Because of the capital limitation, individuals must seek for help from the merchant banks which have considerable scale in global operations. —Securitization and disintermediation -The change of the source of corporate financing from bank loans to merchant banks’ services has increased the development of merchant banking business. Many corporations like to seek financial arrangement through merchant banks. —Advanced technology -Since the communication ability has been intensified by the advanced technology, the information exchange among merchant bankers and other financial institutions becomes more vigorous. —Industrial organization restructuring -The environment for file growth of merchant banking has been created with the rapid restructuring of industrial organization, such as the breaking-down of conglomerates, introduction of leverage-buy-out, favorable acceptance of “junk”bond. —Globalization -From 1990s onwards, a global market has been laid down by the creation of the Euro-market and the increasing use of commercial papers and other financial instruments and the impetus for the growth of merchant banking business has been provided by this favorable conditions.Question 530．Describe money markets and capital markets.正确答案：Money markets: Concept: —Money markets are exchange systems where short-term, usually less than one year, highly liquid and readily marketable credit instruments are traded. Instruments traded in Hongkong money markets: —Negotiable certificates of deposits: -a financial instrument issued by a bank or a deposit-taking company as evidence of indebtedness; -repayable either on demand or at a determined future time; -carries either a fixed or floating interest rate. —Inter-bank lending and borrowing: -in Hongkong, it is anintangible market participated by licensed banks and deposit-taking companies; -borrowing is on unsecured and short-term basis, ranging from overnight call up to 6 to 12 months; -HIBOR is used to determine the offer price. —Floating rate notes: -a negotiable instrument bearing a floating interest rate and issued by a company; -the quality of the note will be reflected by the reception of the notes in file market; -a highly-rated company will offer notes with a better rate. —Commercial papers/ bills: -a form of negotiable instrument issued by companies; -a promissory note, unsecured and with a maturity date; -comparatively high yield. —The Exchange Fund Bills: -similar to the treasury bills issued in other countries; -investors earn no interest but receive a return based on the discount from their face value at maturity; -important investors are: licensed banks, deposit-taking companies, insurance companies, other financial companies and institutions; -advantages: highly liquid; strong credit standing; a large and expanding market. —The Government Bond Instruments traded in the international money markets: —Treasury bills. —Eurodollars. —Eurodollar certificates of deposits. Through local brokers and dealers who bring buyers and sellers together for a commission, one can easily get access to international money market instruments in Hongkong.Capital markets:Concept: —it is a market where long-term financial instruments with maturities of upwards of one year are traded.General characteristics of the instruments: —greater risk; —less liquidity; —higher degree of default rate. Types of instruments: —Credit instruments -they are issues by which a lender advances funds to a borrower in return for the borrower’s IOU. —Equity instruments -they are issues by which investors supply permanent financing to firms or other borrowers including governments.SECTION FIVE Answer one question only.Question 631．Analyzing the “security”—the factor that banks employ to consider the loan granting.正确答案：(1) Concept of the security Security can be viewed as a “comfort”which provides the lending banker with the assurance that if things go wrong with the loan, there is another source of recovery available to minimize credit losses.(2)The classification of the security A. Direct security and collateral Direct security: refers to the borrower’s assets obtained by the bank by way of a mortgage, charge or lien. Collateral: refers to any security deposited by a third party to secure the indebtedness of the borrower. B. Tangible and intangible Tangible: include land, buildings, fixed deposits, shares and stocks. Intangible: guarantees and indemnities. (3)The types of security and their features Land and other property Most popular type of security. It can be classified as “legal” or “equitable”mortgage. Life policy It is an adequate form of security,especially against loans made to a sole proprietorship. Stocks and shares It is common type of security. To avoid the risk involved, loans should not be made against “unquoted”shares. Guarantees It is a written undertaking to be responsible for the debt of another party. There are three parties involved: creditor, debtor and guarantor. Debentures It is a written acknowledgement of indebtedness by a company, usually given under its seal and setting out the terms of interest and repayment. Deposits It is a safe and highly liquid form of security. Its value is readily available and realization is relatively easy. (4)The factors influencing the judgment of the security Value: the price at the time it is necessary to sell the asset so as to recover the loan. Type: Acceptability: acceptable to the bank as security, and be readily available to be transferred to the bank. Realizability: the last step that the bank takes to recover the loan.(5)The criteria for good or suitable security Easy to value. Easy to transfer tide. Easy to realize. Stable and increasing in value. (6)The advantage of using security It provides banks with some form of insurance to safeguard the bank against any loss if the loan turns out to be irrecoverable. (7)The limitation of using security Security is a protection rather than a source of repayment. It should be the last item to be considered in loan approval.Question 732．(a)Write short notes on the following: (i)BACS (ii)CHAPS (iii)CHIPS (iv)FedWire (b)What are the significance and limitations of the balance sheet?正确答案：(a)(i)BACS: Formerly known as Bankers’Automated Clearing Services. BACS handles direct debits and credits as well as standing orders in the UK. The clearing process is normally completed on the third day of the operation cycle. (ii)CHAPS It refers to the Clearing House Automated Payments System. It is available nationwide in Britain. It is operated by a number of settlement banks who communicate directly through computers. Payments sent through the system are guaranteed and unconditional, and cleared on a same-day basis. (iii)CHIPS It refers to Clearing House Inter-bank Payments System. It is a computerized network in the United States for transfer of international payments. It links up a number of international banks and other financial institutions which have offices or subsidiaries in New York City. Members are classified as “settling” and “non-settling”member banks. Each non-settling member bank maintains an account with a settling member which effects settlement on its behalf. (iv)FedWire It is a fund-transfer system operated in the USA by the Federal Reserve System (file Fed, the Central Bank of the US). This fund-transfer network handles transfers from one financial institution to another with an account balance held with the Fed. The transfer of reserve account balances is used for the buying and selling of Fed funds, and credit transfers on behalf of bank customers.(b)A balance sheet is basically a financial statement that gives an accounting pictureof assets owned by a business operation and of claims outstanding on a specific date. The balance sheet acts as a snapshot of the company’s position at a point in time. The balance sheet provides us with some idea of a company’s real worth and the trends of performance. It is static and historical in that it shows the assets and liabilities at a past point in time. Some of the assets are estimations only and as valued on the date stated.Question 833．Wang wants to transfer his money from China to the US. Could you explain the different money transfer methods provided by banks to him?正确答案：There are three methods of money transfer provided by banks: Draft: —A draft is an order in writing, made out to a person other than the maker, instructing him to pay a certain sum of money to a named person called the payee. It is also called a “bank draft” or “banker’s cheque”. —A draft can be sent by mail or handed over directly to the payee by the customer. —the process of a draft handling: -A request from a customer to a banker to issue a draft to a recipient overseas; -The draft drawn by the drawer bank on the drawee bank for the transaction of the draft; -The drawer advises the drawee of the issue of the draft and informs the drawee bank to pay the payee when the draft is presented for payment. —The features: -A draft sent by the customer is the least expensive, but is the slowest form of transmission. -The customer bears the risks of theft, destruction or loss in the mail system when the draft is sent by the customer himself. Mail transfer: Mail transfer is an instruction given by one hank to another, based on the request of the customer. —The way to transfer : -a written draft; -internal communication system. —The banks involved: -the remitting bank: the hank which instructs another bank to make payment to the nominated recipient; -the advising bank: the bank which receives the instruction from the remitting bank. —The process of mail transfer: -The request from a customer to the remitting hank to transfer the money; -The remitting bank will send a statement to the advising bank and tell it the exact amount being transferred, the name of the payee and his address; -The advising bank will inform the nominated recipient and check the recipient’s identity and then release the funds. —The features of the mail transfer: -It is a little safer. -The speed is low. -It could also be delayed, destroyed or even stolen. -Such delay involves additional interest payment. Telegraphic transfer: —It is an authenticated order given by the remitting hank to the advising bank to which it is addressed to make available specified funds to a named recipient. —The way to transfer: cable or telex. —The process of the telegraphic transfer: -The request from a customer to the remitting bank; -The remitting bank will send a statement to the advising bank through cable or telex which contains a “test-key”; -The advising bank receives the transmission and uses the test-key to verify the genuineness of the telex or cable instruction. And then advises the recipient to collect the funds. —The features ofthe telegraphic transfer: -It is the most expensive way of money transfer; -Fast in speed; -One of the reliable forms of money transfer.。
CFA考试(Level Ⅰ)历年真题详解 2014 Level Ⅰ Mock Exam Afternoon Session
2014 Level Ⅰ Mock Exam: Afternoon Session1．Linda Chin, CFA, is a member of a political group advocating less governmental regulation in all aspects of life. She works in a country where local securities laws are minimal and insider trading isnot prohibited. Chin's politics are reflected in her investment strategy, where she follows hercountry's mandatory legal and regulatory requirements. Which of the following actions by Chin wouldbe most consistent with the CFA Institute Standards of Professional Conduct?A．Continuing her current investment strategyB．Following the CFA Institute Standards of Professional ConductC．Disclosing her political advocacy to clients【答案】B【解析】“Guidance for Standards I-VII,” CFA InstituteStandard I(A): Knowledge of the Law, Standard II(A): Material Nonpublic InformationStandard I(A): Knowledge of the Law requires members and candidates to comply with the morestrict law, rules, or regulations and follow the highest requirement, which in this case would be the CFA Institute Standards of Professional Conduct. Standard II(A): Material Nonpublic Information would also apply because members and candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information. Disclosure that she meets local mandatory legal requirements--versus the more strict law, rules, or regulations mandate of the Standards of Professional Conduct--would not excuse the member from following the Standards of Professional Conduct.2．Colleen O'Neil, CFA, manages a private investment fund with a balanced global investmentmandate. Her clients insist that her personal investment portfolio replicate the investments withintheir portfolios to assure them she is willing toput her own money at risk. By undertaking which ofthe following simultaneous investment actions for her own portfolio would O'Neil most likely be inviolation of Standard VI(B): Priority of Transactions?A．Sale of a listed US blue chip value stockB．Purchase of a UK government bond in the primary market C．Participation in a popular frontier market IPO【答案】C【解析】“Guidance for Standards I-VII,” CFA InstituteStandard VI(B): Priority of TransactionsStandard VI(B): Priority of Transactions dictates members and candidates give their clients and employer priority when making personal investment transactions. Even when clients allow orinsist the manager invest alongside them, the manager's transactions must never adversely affect the interests of the clients. A popula r or “hot” IPO in a frontier market is likely to beoversub cribed. In such cases, Standard VI(B) dictates that the manager should not participate in this event to better ensure clients will have a higher probability of getting their full subscription allotment, even though clients have allowed or dictated that she participate alongside them.3．Millicent Plain has just finished taking Level II of the CFA examination. Upon leaving the examinationsite, she meets with four Level III candidates who also just sat for their exams. Curious about their examination experience, Plain asks the candidates how difficult the Level III exam was and how theydid on it. The candidates say the essay portion of the examination was much harder than they had expected and that they were not able to complete all questions as a result. The candidates go on totell Plain about broad topic areas that were tested and complain about specific formulas they hadmemorized that did not appear on the exam. The Level III candidates least likely violated the CFAInstitute Standards of Professional Conduct by discussing:A．specific formulas.B．the examination essays.C．broad topic areas.【答案】B【解析】“Guidance for Standards I-VII,” CFA InstituteStandard VII(A): Conduct as Members and Candidates in the CFA Program Discussing the level of difficulty of the essay portion of the examination did not violate Standard VII(A): Conduct as Members and Candidates in the CFA Program. Standard VII(A) and the Candidate Pledge were violated by candidates when they revealed broad topic areas and formulas tested or not tested on the exam.4．Heidi Halvorson, CFA, is the chief investment officer for Tukwila Investors, an asset managementfirm specializing in fixed-income investments. Tukwila is in danger of losing one of its largest clients,Quinault Jewelers, which accounts for nearly one-third of its revenues. Quinault recently told Halverson that Tukwila would be fired unless the performance of Quinault's portfolio improvessignificantly. Shortly after this conversation, Halvorson purchases two corporate bonds she believesare suitable for any of her clients based onthird-party research from a reliable and diligent source.Immediately after the purchase, one bond increases significantly in price while the other bonddeclines significantly. At the end of the day, Halvorson allocates the profitable bond trade to Quinaultand the other bond to two of her largest institutional accounts. Halvorson most likely violated the CFA Institute Standards of Professional Conduct in regard to:A．client suitability.B．third-party research.C．trade allocations.【答案】C【解析】Guidance for Standards I-VII,” CFA InstituteStandard Ill(B): Fair Dealing, Standard Ill(C): Suitability, Standard V(A): Diligence and Reasonable BasisThe investment officer failed to deal fairly by allocating profitable trades to a favored client at the expense of others, a violation of Standard Ill(B): Fair Dealing. The standard requires members and candidates to treat all clients fairly when taking investment action. Tukwila should have a systematic approach to allocating trades, such as pro rata, before or at the time of tradeexecution, or as soon as possible after trades are executed. The analyst believes the bonds are suitable for any of her clients, so she has not violated Standard Ill(C): Suitability. 5．Jack Steyn, CFA, recently became the head of the trading desk at a large investment managementfirm that specializes in domestic equities. While reviewing the firm's trading operations, he notices clients give discretion to the manager to select brokers on the basis of their overall services to themanagement firm. Despite the client directive, Steyn would most likely violate Standard Ill(A): Loyalty, Prudence, and Care if he pays soft commissions for which of the following services from thebrokers?A．Database services for offshore investmentsB．Equity research reportsC．Investment conference attendance【答案】A【解析】“Guidance for Standards I-VII,” CFA Institute Standard Ill(A): Loyalty, Prudence, and CareStandard Ill(A): Loyalty, Prudence, and Care stipulates that the client owns the brokerage.Therefore, members and candidates are required to use client brokerage only to the benefit of the clients (soft commissions policy). Because the firm specializes in domestic equities, an offshore investment database service would not benefit the clients.6．Based on his superior return history, Vijay Gupta, CFA, is interviewed by the First Faithful Church tomanage the church's voluntary retirement plan's equity portfolio. Each church staff member chooseswhether to opt in or out of the retirement plan according to his or her own investment objectives. Theplan trustees tell Gupta that stocks of companies involved in the sale of alcohol, tobacco, gambling,or firearms are not acceptable investments given the objectives and constraints of the portfolio. Gupta tells the trustees he cannot reasonably execute his strategy with these restrictions and that allhis other accounts hold shares of companies involved in these businesses because he believes theyhave the highest alphA. By agreeing to manage the account according to the trustees' wishes, doesGupta violate the CFA Institute Standards of Professional Conduct?A．Yes, because the restrictions provided by the trustees are not in the best interest of the membersB．Yes, because the manager was hired based on his previous investment strategyC．No【答案】C【解析】“Guidance for Standards I-VII,” CFA InstituteStandard Ill(A): Loyalty, Prudence, and CareA is correct. According to Standard Ⅲ(A): Loyalty, Prudence, and Care, Gupta's duty of loyalty, prudence, and care is owed to the participants and beneficiaries (members) of the pension plan. As a church plan, the restrictions are appropriate given the objectives and constraints of the portfolio.7．Jorge Lopez, CFA, is responsible for proxy voting on behalf of his bank's asset management clients. Lopez recently performed a cost-benefit analysis that showed the proxy-voting policies might notbenefit the bank's clients. As a result, Lopez immediately changes the proxy-voting policies and procedures without informing anyone. Lopez now votes client proxies on the side of managementonall issues, with the exception of major mergers in which a significant impact on the stock price is expected. Lopez least likely violated the CFA Institute Standards of Professional Conduct in regard to:A．cost-benefit analysis.B．voting with management.C．proxy-voting policy disclosures.【答案】A【解析】“Guidance for Standards I-VII,” CFA InstituteStandard Ill(A): Loyalty, Prudence, and CarePerforming a cost-benefit analysis showing that voting all proxies might not benefit the client and concluding that voting proxies may not be necessary in all instances is not a violation of Standard Ill(A): Loyalty, Prudence, and Care. However, even though voting proxies may not be necessary in all instances, part of a member's or candidate's duty of loyalty under Standard Ill(A) includes voting proxies in an informed and responsible manner, which is not being done when Lopez automatically votes with management on the majority of issues. In addition, members and candidates should disclose to clients their proxy-voting policies, including any changes to that policy, as required by Standard Ill(A), which has not been done.8．Chris Rodriguez, CFA, is a portfolio manager at Nisqually Asset Management, which specializes intrading highly illiquid shares. Rodriguez has been using Hon Securities Brokers almost exclusivelywhen making transactions for Nisqually clients, as well as for his own relatively small account. Honalways executes Rodriguez's personal trades at a more preferential price than for Rodriguez's clients' accounts. This special pricing occurs regardless of whether or not Rodriguez personallytrades before or after clients. Rodriguez should least likely do which of the following in order tocomply with the CFA Institute Standards of Professional Conduct?A．Trade client accounts before his own account.B．Eliminate the exclusive trading arrangement.C．Average trade prices across all trading accounts.【答案】C【解析】“Guidance for Standards I-VII,” CFA InstituteStandard Ill(A): Loyalty, Prudence, and Care; Standard IV(A): Loyalty; Standard VI(B): Priority of TransactionsRodriguez is in violation of Standard IV(A): Loyalty, which requires that, in matters related to their employment, members and candidates must act for the benefit of their employer and not deprive their employer of the advantage of their skills and abilities, divulge confidential information, orotherwise cause harm to their employer. Rodriguez should not accept the special treatment from Hon; instead, he should ask Hon to lower costs for the transactions of his Nisqually clients. Rodriguez should not average transaction costs because his clients should be given the lower preferential prices according to Standard Ill(A): Loyalty, Prudence, and Care.9．When Abdullah Younis, CFA, was hired as a portfolio manager at an asset management firm two years ago, he was told he could allocate his work hours as he saw fit. At that time, Younis served onthe board of three non-public golf equipment companies and managed a pooled investment fund forseveral members of his immediate family. Younis was not compensated for his board service or formanaging the pooled fund. Younis's investment returns attract interest from friends and co-workerswho persuade him to include their assets in his investment pool. Younis recently retired from all board responsibilities and now spends more than 80% of his time managing the investment pool forwhich he charges non-family members a management fee. Younis has never told his employer about any of these activities. To comply with the CFA Institute Standards of Professional Conduct with regard to his business activities over the past two years, Younis would least likely be required todisclose which of the following to his employer?A．Family investment pool managementB．Board activitiesC．Non-family member management fees【答案】B【解析】“Guidance for Standards I-VII,” CFA InstituteStandard IV(B): Additional Compensation Arrangements, Standard VI(A): Disclosure of ConflictsGolf equipment is a business independent of the financial services industry such that any board obligations would not likely be considered a conflict of interest requiring disclosure according to Standard IV(B): Additional Compensation Arrangements. Standard IV(B) requires members and candidates to obtain permission from their employer before accepting compensation or other benefits from third parties for the services that might create a conflict with their employer's interests. Managing investments for family and non-family members could likely create a conflict of interest for Younis's employer and should be disclosed to his employer.10．Tamlorn Mager, CFA, is an analyst at Pyallup Portfolio Management. CFA Institute recently notifiedMager that his CFA Institute membership was suspended for a year because he violated the CFA Institute Code of Ethics. A hearing panel also came to the same conclusion. Mager subsequently notified CFA Institute that he does not accept the sanction or the hearing panel's conclusion. Whichof the following actions by Mager would be most consistent with the CFA Institute Professional Conduct Program?A．Providing evidence for his position to an outside arbitration panel B．Using his CFA designation upon expiration of the suspension period C．Presenting himself to the public as a CFA charterholder【答案】B【解析】“Code of Ethics and Standards of Professional Conduct,” CFA InstituteCode of Ethics and Standards of Professional Conduct, CFA Institute Professional Conduct ProgramThe Designated Officer may impose a summary suspension on a member or candidate that may be rejected or accepted by the member or candidate. If the member or candidate does not accept the proposed sanction, the matter is referred to a hearing panel composed of Disciplinary Review Committee (DRC) members and CFA Institute member volunteers affiliated with the DRC. In this case, the hearing panel also affirmed the suspension decision by the Designated Officer, and therefore, the member loses the right to use his designation for a one-year period. Upon expiration of the suspension period, the analyst would be able to use his CFA designation.11．Elbie Botha, CFA, an equity research analyst at an investment bank, disagrees with her researchteam's buy recommendation for a particular company's rights issue. She acknowledges the team'srecommendation is based on a well-developed process and extensive research, but she feels thevaluation is overpriced based on her assumptions. Despite her contrarian view, her name is included on the research report to be distributed to all of the investment bank's clients. To avoid violating anyCFA Institute Standards of Professional Conduct, it would be least appropriate for Botha to undertake which of the following?A．Insist her name be removed from the reportB．Leave her name on the reportC．Issue a new report【答案】C【解析】“Guidance for Standards I-VII,” CFA InstituteStandard IV(A): Loyalty, Standard V(A): Diligence and Reasonable Basis Standard IV(A): Loyalty calls for employees to be loyal to their employer by not causing harm. If Botha released a contradictory research recommendation reportto clients, it could possibly cause confusion amongst clients and embarrassment to the firm.12．Thomas Turkman recently hired Georgia Viggen, CFA, as a portfolio manager for North South Bank. Although Viggen worked many years for a competitor, West Star Bank, the move was straightforward because she did not have anon-compete agreement with her previous employer.Once Viggen starts working for Turkman, the first thing she does is bring to her new employer a trading software package she developed and used at West Star. Using public information, Viggencontacts all of her former clients to convince them to move with her to North South. Viggen also convinces one of the analysts she worked with at West Star to join her at her new employer. Viggenmost likely violated the CFA Institute Standards of Professional Conduct concerning her actions involving:A．clients.B．trading software.C．the analyst.【答案】B【解析】“Guidance for Standards I-VII,” CFA InstituteStandard IV(A): LoyaltyThe portfolio manager violated Standard IV(A): Loyalty by taking proprietary trading software from her former employer. Although the manager created the software, it was during a period of time when she was employed at West Star, so the software is not her property to take with her to her new employer. The member contacted clients using public information, so she did not violate Standard IV(A): Loyalty. Because Viggen was not obligated to abide by anon-compete agreement that would likely restrict recruitment of former colleagues, Viggen is most likely free to recruit the analyst from her former employer.13．Lisa Hajak, CFA, specialized in research on real estate companies at Cornerstone Country Bank for20 years. Hajak recently started her own investment research firm, Hajak Investment Advisory. Oneof her former clients at Cornerstone asks Hajak to update a research report she wrote on a real estate company when she was at Cornerstone. Hajak updates the report, which she had copied toher personal computer without the bank's knowledge, and replaces references to the bank with hernew firm, Hajak Investment Advisory. Hajak also incorporates the conclusions of a real estate studyconducted by the Realtors Association that appeared in the Wall Street Journal. She cites the WallStreet Journal as her source in her report. She provides the revised report free of charge along with acover letter for the bank's client to become a client of her firm. Concerning the reissued research report, Hajak least likely violated the CFA Institute Standards of Professional Conduct because she:A．did not cite the actual source of the real estate study.B．solicited the bank's client.C．used the bank report without consent.【答案】B【解析】“Guidance for Standards I-VII,” CFA InstituteStandard I(C): Misrepresentation, Standard IV(A): Loyalty, Standard V(C): Record RetentionSoliciting the bank's client did not violate Standard IV(A): Loyalty because the manager is no longer an employee of the bank and there is no indication she obtained the client information from bank sources. But Hajak has violated Standard V(C): Record Retention because when she left the bank, she took the property of the bank without express permission to do so. In addition, she violated Standard I(C): Misrepresentation by creating research materials without attribution, which is demonstrated when she adds to the new report a real estate study she saw in the Wall Street Journal and only references the Journal. In all instances, a member or candidate must cite the actual source of the information. If she does not obtain the report and review the information, the manager runs the risk of relying on secondhand information that may misstate facts. Best practice would be either to obtain the complete study from its original author and cite only that author or to use the information provided by the intermediary and cite both sources.14．Henrietta Huerta, CFA, writes a weekly investment newsletter to market her services and obtain new asset management clients. A third party distributes the free newsletter on her behalf to those individuals on its mailing list. As a result, it is widely read by thousands of individual investors. Thenewsletter recommendations reflect most of Huerta's investment actions. After completing furtherresearch on East-West Coffee Roasters, Huerta decides to change her initial buy recommendationto a sell. To avoid violating the CFA Institute Standards of Professional Conduct, it would be mostappropriate for Huerta to distribute the new investment recommendation to:A．newsletter recipients and asset management clients simultaneously. B．asset management clients first.C．newsletter recipients first.【答案】B【解析】“Guidance for Standards I-VII,” CFA InstituteStandard Ill(A): Loyalty, Prudence, and CareAccording to Standard Ill(A): Loyalty, Prudence, and Care, members and candidates must place their clients' interests before their own interests. The temptation may be to release the changed recommendation to newsletter recipients simultaneously with or even before the asset management clients to try to obtain new clients. But to avoid violating Standard Ill(A), Huerta must ensure any change in an investment recommendation is first distributed to her asset management clients before any newsletter recipients, who are not necessarily clients (that is, they receive the newsletter for free from a third-party distribution list).15．Suni Kioshi, CFA, is an analyst at Pacific Asset Management, where she covers small-capitalizationcompanies. On her own time, Kioshi often speculates inlow-price thinly traded stocks for her own account. Over the last three months, Kioshi has purchased 50,000 shares of Basic Biofuels Company, giving her a 5% ownership stake. A week after this purchase, Kioshi is asked to write a report onstocks in the biofuels industry, with a request to complete the report within two days. Kioshiwants to rate Basic Biofuels as a buy in this report but is uncertain how to proceed. Concerning the research report, what action should Kioshi most likely take to prevent violating any of the CFAInstitute Standards of Professional Conduct?A．Not recommend a buyB．Disclose her stock ownershipC．Sell her shares【答案】B【解析】“Guidance for Standards I-VII,” CFA InstituteStandard V(A): Diligence and Reasonable Basis, Standard VI(A): Disclosure of ConflictsThe manager's ownership stake is a potential conflict of interest, which should be disclosed asrequired by Standard VI(A): Disclosure of Conflicts, but there is no requirement to sell the shares. As long as the analyst has completed awell-informed investment recommendation consistent with Standard V(A): Diligence and Reasonable Basis and disclosed her ownership position, she could include the buy recommendation in her report.16．Edo Ronde, CFA, an analyst for a hedge fund, One World Investments, is attending a key industryconference for the microelectronics industry. At lunch in a restaurant adjacent to the conference venue, Ronde sits next to a table of conference attendees and is able to read their nametags. Ronderealizes the group includes the president of a publicly traded company in the microelectronics industry, Fulda Manufacturing, a company Ronde follows. Ronde overhears the president complainabout a production delay problem Fulda's factories are experiencing. The president mentions thatthe delay will reduce Fulda's earnings by more than 20% during the next year if not solved. Ronderelays this information to the portfolio manager he reports to at One World explaining that in a recent research report he recommended Fulda as a buy. The manager asks Ronde to write up a negativereport on Fulda so the fund can sell the stock.According to the CFA Institute Standards of Professional Conduct, Ronde should least likely:A．request the portfolio manager not act on the information.B．leave his research report as it is.C．revise his research report.【答案】C【解析】“Guidance for Standards I-VII,” CFA InstituteStandard II(A): Material Nonpublic InformationRonde should refuse to follow his supervisor's request. If Ronde revises his research report based on the information he overheard at the industry conference, he would violate Standard II(A): Material Nonpublic Information. The production delay information is material and considered nonpublic until it is widely distributed. Therefore, it should not be included in Ronde's research report or acted on until it becomes public C Ronde should try to encourage Fulda to make the information public.17．Victoria Christchurch, CFA, is a management consultant currently working with a financial servicesfirm interested in curtailing its high staff turnover, particularly among CFA charterholders. In recentmonths, the company lost 5 of its 10 most senior managers, all of whom have cited systemic unethical business practices as the reason for their leaving. To curtail staff turnover by encouraging ethical behavior, it would be least appropriate for Christchurch to recommend the company do whichof the following?A．Implement a whistleblowing policyB．Create, implement, and monitor a corporate code of ethics C．Encourage staff retention by offering increased benefits【答案】C【解析】“Guidance for Standards I-VII,” CFA InstituteStandard I(A): Knowledge of the LawOffering increased benefits to encourage staff retention would not necessarily stop the unethical behavior causing staff turnover and would effectively be asking the ethical employees to ignorethe unethical behavior, thus being complicit in the behavior. Under Standard I(A): Knowledge of the Law, CFA charterholders and candidates must disassociate themselves from unethicalbehavior. Because the unethical business practices are seen as systemic, it would likely require them to leave the firm. Implementing a whistleblowing policy and adopting a corporate code of ethics would likely help to build a foundation of strong ethical behavior.18．Dilshan Kumar, CFA, is a world-renowned mining analyst based in London. Recently, he received aninvitation from Cerberus Mining, a company listed on the London Stock Exchange with headquartersin Johannesburg, South AfricA. Cerberus asked Kumar to join a group of prominent analysts from around the world on a tour of its mines in South Africa, some of which are in remote locations andnot easily accessible. The invitation also includes an arranged wildlife safari to Krueger NationalPark for the analysts. Kumar accepts the invitation, planning to visit other mining companies hecovers in Namibia and Botswana after the safari. To prevent violating any CFA Institute Standards of Professional Conduct, it is most appropriate for Kumar to only accept which type of paid travelarrangements from Cerberus?A．Flights on a private airplane to the remote mining sites in South Africa B．Economy class round trip ticket from London to Johannesburg C．Ground transportation to Krueger National Park【答案】A【解析】“Guidance for Standards I-VII,” CFA InstituteStandard I(B): Independence and ObjectivityStandard I(B): Independence and Objectivity requires members and candidates to use reasonable care and judgment to maintain their independence and objectivity in their professionalactivities. Best practice dictates that Kumar only accept transportation to the remote mining sites because it is unlikely he would be able to source commercial flights to the locations and ground transportation may not be viable. Because Kumar would normally visit mining sites around the world as part of his job and because he is combining this trip with trips to other mine sites indifferent countries, it would be inappropriate for Cerberus to pay for the analyst's travel expenses from London. Although Kumar could go on safari with the group of analysts, he should pay hisown way so as to restrict any influence such a gift could possibly have when making his investment recommendations on Cerberus.19．Which method of calculating the firm's cost of equity is most likely to incorporate the long-run return relationship between the firm's stock and the market portfolio?A．Capital asset pricing modelB．Dividend discount modelC．Bond yield plus risk premium approach【答案】A【解析】“Cost of Capital,” Yves Courtois, Gene C. Lai, and Pamela Peterson Drake Section 3.3The capital asset pricing model uses the firm's equity beta, which is computed from a market model regression of the company's stock returns against market returns.20.A project has the following annual cash flows:。
金融英语FECT单选题附答案
金融英语FECT单选题附答案1. Which of the following is not a function of money? ______.A. To act as a medium of exchangeB. To act as a unit of accountC. To act as a store of valueD. To provide a double coincidence of wantsE. To act as a means of payment2. The price in the foreign exchange market is called ______.A. the trade surplusB. the exchange rateC. the money priceD. the currency rate3. Market risk refers to the risk of______.A. financial prices fluctuationsB. defaultC. fraudD. deferred payments4. Which of the following is not among the generally accepted accounting principles? ______.A. Cash basisB. PrudenceC. ConsistencyD. Going concernE. Money measurement.5. What is a documentary letter of credit? ______.A. A conditional bank undertaking to pay an exporter on production of stipulated documentationB. A method of lending against documentary securityC. An international trade settlement system biased in favourof importersD. All of the above6. Holding a group of assets reduces risk as long as the assets ______.A. are perfectly correlatedB. are completely independentC. do not have precisely the same pattern of returnsD. have a correlation coefficient greater than one7. An amount, payable in money goods, or service, owed bya business to a creditor, is known as a/an .A. liabilityB. debtC. equityD. asset8. What function is money serving when you buy a ticket toa movie? ______.A. store of valueB. a medium of exchangeC. transaction demandD. a unit of account9. 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 fallB. supply of sterling will increase, 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 fall10. The documentary collection provides the seller with a greater degree of protection than shipping on ______.A. open accountB. bank's letter of guaranteeC. banker's draftD. documentary credit11. Which of the following statements is not true of central banks? ______.A. They pay the government's salariesB. They always undertake the regulation of the banking systemC. They are always the lender of last resortD. None of the above12. When GBP/USD rate goes from 1.6150 to 1.8500, we say the dollar ______.A. appreciates by 12.70%B. depreciates by 14.55%C. depreciates by 12.70%D. appreciates by 14.55%13. According to diversification principle in investment, suppose you invest Stock X and Stock Y with equal funds, which of the following is not true? ______.A. If X and Y are totally independent with each other, the risk of the portfolio is reducedB. If X and Y are perfectly negatively correlated, the risk of the portfolio is perfectly offsetC. If X and Y are perfectly positively correlated, the risk of the portfolio is neither reduced nor increasedD. If X and Y are perfectly negatively correlated, the risk of the portfolio is neither reduced nor increased14. These 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 advanceFrom 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)15. The main liability on a bank balance sheet is ______.A. depositsB. capital and reservesC. loans and overdraftsD. cash16. ______ shows that net income for a specified period of time and how it was calculated.A. The income statementB. The capital statementC. The accounting statementD. The statement of financial condition17. Why must the liabilities and assets of a bank be actively managed? ______.A. Because assets and liabilities are not evenly matched on the same time scaleB. Because assets and liabilities are evenly matchedC. Because the interbank market uses LIBORD. Because assets and liabilities can be underwritten18. If the expected returns of two risky assets have a perfect negative correlation, then risk .A. is increasedB. falls to zeroC. is unaffectedD. is reduced by one-half19. A possible disadvantage of freely fluctuating exchange rates with no official intervention is that .A. some nations would experience continual deficitsB. the exchange rates may experience wide and frequent fluctuationsC. nations would no longer be able to undertake domestic policies designed to achieve and maintain full employmentD. nations would need a larger supply of international reserves than otherwise20. What are your GBP/USD position and the average rate if you sell ￡4m at 1.6350 buy ￡5m at 1.6340 and sell $5m at1.6348?A. Short ￡2 058 478.10 long $3 370 000 at 1.6371B. Long ￡5 941 521.90 short $9710 000 at 1.6342C. Short ￡5 941 521.90 long $9 710 000 at 1.6342D. Long ￡4 058 478.10 short $6 630 000 at 1.6336答案：1.D2.B3.A4.A5.A6.C7.A8.B9.A 10.A11.B 12.B 13.D 14.B 15.A 16.A 17.A 18.B 19.B 20.D。
金融专业英语证书考试FECT模拟试题-4
金融专业英语证书考试FECT模拟试题-4(总分100, 考试时间90分钟)SECTION ONE (Compulsory)：Answer all ten questions in this section. Each question carries 1 mark.1. Multiple-choice questions: from the following four options, selecta correct and fill in its labeling the brackets.1.Suppose the demand for tea is very price-elastic. To increase revenue, the tea supplier should ___ the price level.A IncreaseB DecreaseC Not changeD Uncertain该题您未回答:х该问题分值: 2答案:B2.Which of the following would NOT cause a shift upward of the consumption schedule? ()A An increase in household wealth.B An expectation of rising incomes in the future.C A reduction in income taxes.D An increase in household disposable income.该题您未回答:х该问题分值: 2答案:D3.An increase of $1,000 in bank deposits will: ()A Result in a higher level of inflation.B Mean proportionately increased bank profits.C Facilitate the credit creation process.D Bring about government intervention in the working of the bankingsystem.该题您未回答:х该问题分值: 2答案:C4.A rising foreign exchange rate for country X will: ()A Result in a rise in X’s RPI.B Be likely to raise the employment level in X.C Favor those holidaying in X from abroad.D Ease inflationary pressures with X.该题您未回答:х该问题分值: 2答案:D5.Cutting taxes can lower investment through its impact on interest rates. This is an example of the: ()A Income effect.B Accelerator effect.C Crowding out effect.D Multiplier effect.该题您未回答:х该问题分值: 2答案:B6.Which one of the following is the most widely used measure of inflation? ()A The Consumer Price Index.B The Index of Leading Economic Indicators.C The prime rate.D The Federal Funds rate.该题您未回答:х该问题分值: 2答案:A7.You have just won the lottery (congratulations!) and are given the option of receiving $2,000,000 now or an annuity of 200,000 at the end of each year for thirty years. Which of the following is correct? () (assume you are making the decision based on present values)A You cannot choose between the two without first computing future values.B You will always choose the lump sum regardless of interest rates.C Comparing the future value of each will lead to the same decision as comparing present values.D You will always choose the annuity.E You will choose the lump sum if interest rates are 7%.该题您未回答:х该问题分值: 2答案:C8.A company buys 10 items at a price of £200 each, all on 14 days free credit. It then sells on the next day 5 units for £350 each. One item was sold for cash, the remainder on 21 days free credit. What effect do these transactions have on the firm’s cash fl ow on the day of the sale? ()A Gains £750B Gains £1,750C Loses £2,000D Gains £350.该题您未回答:х该问题分值: 2答案:D9.A firm has fixed costs of £100,000 per month and variable costs of £25 for item. It sells them for £50 each. If it sells 5,000 units each month, what is the firm’s Margin of Safety? ()A 1,000 units per monthB £50,000C 1,000 unitsD 25%.该题您未回答:х该问题分值: 2答案:A10.Fred Perry, CFA, purchased $100,000 of a newly issued Treasury inflation protection security based on the following characteristics and information.The coupon payment at the end of one year is closest to: ()A $2,000.B $2,100.C $5,000.D $7,000该题您未回答:х该问题分值: 2答案:BSECTION TWO(Compulsory)：Answer the questions in this section.Reading Comprehension:Arnold Barker is an analyst at BAYCON Investments. He has been asked to revise BAYCON’s credit analysis process for corporate fixe d-income securities. This credit analysis process is the basis for the selection of individual bonds for BAYCON’s fixed-income portfolios. Hank Su, Barker’s supervisor, comments that one limitation of the current credit analysis process at BAYCON is that it only provides an estimate of a bond’s default risk. He asks Barker to expand the credit analysis processto provide an estimate of a bond’s credit spread risk. Su defines credit spread risk as follows:"Credit spread risk is the risk that the issuer will fail to satisfy the terms of the bond with respect to payments.”In addition, Su believes that the current credit analysis process focuses too much on character, collateral, and covenants, and not enough on capacity. In response to Su’s observations, Barker develops a quantitative debt-capacity model to assess the capacity of an issuer to meet its obligations. His debt-capacity model is based on the issuer’s profitability, debt coverage, and cash flow analysis. Barker decides to use the model to evaluate Haynes Industries, a recent investment-grade bond issuer. To calculate the inputs to the debt-capacity model, Barker gathered selected financial data, displayed in Exhibit 1, on Haynes Industries.Exhibit 1Selected Financial Data for Haynes Industries(In millions)Barker also decides to look at several key ratios used by Standard & Poor’s and other credit analysts, including coverage ratios, solvency ratios, and "funds from operations / total debt."Ed Dawson, a fixed-income research manager at BAYCON, has reviewed Barker’s debt-capacity model and makes the following statements about the model’s applicability to high-yield bonds, asset-backed securities, and municipal bonds:1. For the model to be useful for high-yield issues, it must consider the entire debt structure of the issuer. For example, high-yield issuers rely to a greater extent on bank debt than investment-grade issuers.2. While the model has limited applicability in the assessment of the credit of asset-backed securities, it can be used to evaluate the quality of the service. However, it cannot be used to assess the underlying collateral’s ability to generate cash flows.3. The credit analysis of municipal tax-backed bonds should involve assessing the issuer’s:debt structure,ability and political discipline to maintain sound budgetary policy, local tax base and intergovernmental revenues available, andflow of funds structure.11.Su’s definition of credit spread risk is: ()A Correct.B Incorrect, be cause credit spread risk is the risk that a bond’sprice will fall when the bond’s risk premium increases while the yield on a similar maturity Treasury bond falls.C Incorrect, because credit spread risk is the risk t hat a bond’sprice will fall when the bond’s risk premium decreases while the yield on a similar maturity Treasury bond rises.D Incorrect, because credit spread risk is the risk that a bond’sprice will fall when the bond’s risk premium remains constant while the yield on a similar maturity Treasury bond rises.该题您未回答:х该问题分值: 2答案:ADistinguish among default risk, credit spread risk, and downgrade risk.Credit spread risk is the risk an issuer’s debt obligation will relatively decline due to an increase in the credit spread. In this case the credit spread is increasing and the bond’s price will fall.12.The "funds from operations / total debt" ratio for Haynes Industries for 2004 was closest to: ()A 50.5%.B 52.1%.C 52.1%.D 63.5%.该题您未回答:х该问题分值: 2答案:CCalculate, critique, and interpret the key financial ratios used by credit analysts.Funds from operations / total debt = 7,672 / 14,147 = 54.23%. Funds from operations is defined as (Net Income + Depreciation & Amortization + Other non-cash charges) = (5,186 + 1,703 + 783) = 7,672. Total debt is defined as (Current Maturity of LTD + Long-Term Debt + Lease Debt Equivalent) = (2,172 + 11,475 + 500) = 14,147.13.For 2004, compared with 2003, did Haynes Industries have an increase or decrease in: ()A Answer A.B Answer B.C Answer C.D Answer D.该题您未回答:х该问题分值: 2答案:BCalculate, critique, and interpret the key financial ratios used by credit analysts.The interest coverage ratio [(EBIT (EBITDA)) / interest expense] increased from 8.97 (9.89) in 2003 to 10.40 (11.38) in 2004, and short-term solvency decreased from 1.358 in 2003 to 1.128 in 2004 where:*Current Liabilities = Current Assets - Working Capital 2004: Current Liabilities = 8,668 - 984 = 7,6842003: Current Liabilities = 8,232 - 2,168 = 6,06414.Given the debt structure described in Dawson’s first statement, the factor that is least likely to affect the creditworthiness of the high-yield issuer is the: ()A Ability to refinance.B Impact of sale of assets.C Presence of senior bonds in the debt structure.D Impact of changes in short-term interest rates.该题您未回答:х该问题分值: 2答案:CIdentify, explain, and interpret the typical elements of the corporate structure and debt structure of a high-yield issuer and the impact of these elements on the risk position of the lender. Bank loans have a priority over other debt issues; therefore the presence of senior bonds in the debtstructure will have little impact on the credit analysis of high-yield issuers.15.Regarding Dawson’s second stat ement that refers to asset-backed securities is he correct or incorrect in describing the model’s ability to: ()A Answer A.B Answer BC Answer CD Answer D该题您未回答:х该问题分值: 2答案:CDiscuss the factors considered by rating agencies in rating asset-backed securities.In the case of an asset-backed security, the quality of the service is evaluated using factors such as servicing history, underwriting standards for loan origination, servicing capabilities, business environment, and financial condition. The model will only address financial condition. Dawson is correct in stating that the model cannot be used to determine the ability of the underlying collateral to generate cash flows.Explanations of terms16.Liquidity trap该题您未回答:х该问题分值: 6答案:As the money supply increases the supply-of-money curve intersects the demand-for-money curve at flat part of the latter where an increase in the money supply no longer reduce the interest rate. This flat portion of the demand-for-money is called liquidity trap, which illustrates that the interest rate is insensitive to the increase of the money supply andpeople’s demand for money becomes infinitely large at the flat portion of the demand-for-money.17.Recognition lag该题您未回答:х该问题分值: 6答案:The recognition lag is the period that elapses between the time at which economic situation changes and the time at which the policymaking officials become aware of the need for action. This time lag could be negative if the disturbance can be predicted and appropriate policy actions considered before it even occurs.18.Group of Seven (G-7)该题您未回答:х该问题分值: 6答案:Seven of the world’s leading countries that meet periodically to achieve a cooperative effort on international economic and monetary issues。
金融专业英语证书考试FECT单选练习100题-2
金融专业英语证书考试FECT单选练习100题-21. Usually the low interest rate currency trades at a ______ to the high interest rate currency in the forward market.A. premiumB. parC. discountD. bar2. Which of the following statements about standby letters of credit is true ______.A. They can serve as a guarantee to a buyer against a seller defaultingB. They are contrary to the general rule that letters of credit may only be used for the actual movement of goodsC. They are unlike a tender (or other) bond in their legal standing and method of operationD. They are unlike a tender bond with its fixed expiry date3. The most liquid of all assets is ______.A. the stock of commercial banksB. M 1C. intelligenceD. the debt of major corporations4. Beta and standard deviation differ as risk measures in that beta measures ______.A. only unsystematic risk, while standard deviation measures total riskB. only systematic risk, while standard deviation measures total riskC. both systematic and unsystematic risk, while standard deviation measures only unsystematic riskD. both systematic and unsystematic risk, while standard deviation measures only systematic risk5. What information would you find in a statement of cash flows that you would not be able to get from the other two primary financial statements ______.A. Cash provided by or used in financing activitiesB. Cash balance at the end of the periodC. Total liabilities due to creditors at the end of the periodD. Net income6. An analyst estimates that a stock has the following probabilities of return depending on the state of the economy:The expected return of the stock is ______.A.7.8% C. %D. %B. %7. According to the rules of debit and credit for balance sheet accounts ______.A. increases in asset, liability, and owner's equity accounts are recorded by debitsB. decreases in asset and liability accounts are recorded by creditsC. increases in asset and owner's equity accounts are recorded by debitsD. decreases in liability and owner's equity accounts are recorded by debits 2658. Individuals will accept the medium of exchange in return for goods and services only if they are confident that ______.A. the inflation rate is zeroB. it possesses intrinsic valueC. they can pass it on to othersD. they can exchange it for gold9. When a country's currency appreciates, the country's goods abroad become ______ and foreign goods in that country become ______.A. cheaper... more expensiveB. more expensive... cheaperC. cheaper...cheaperD. more expensive... more expensive10. A US company is bidding for a contract in China. Its Chinese customer asks foraperformance bond. What is the most likely course of action ______.A. It asks its bank to issue a tender bond which can be converted into a performance bondB. It gives up its bidC. It consults its bank about issuing a standby letter of creditD. It asks its bank to issue a performance bond11. ABC Co. Ltd. has a $3 500 account receivable from XYZ Store. On March 20, XYZ makes a partial payment of $2 100 to ABC. The journal entry made on Mdrch 20 by ABC to record this transaction includes ______.A. a debit to the cash received account of $2 100B. a credit to the Accounts Receivable account of $2 100C. a debit to the Cash account of $1 400D. a debit to the Accounts Receivable account of $1 40012. Intervention in the foreign exchange market means the government ______.A. restricts individuals from buying and selling foreign exchangeB. restricts the importation of certain goodsC. or central bank buys or sells foreign exchangeD. devalues the currency in the foreign-exchange market13. Which of the following is not a form of countertrade ______.A. CounterpurchaseB. Buy-backC. OffsetD. Balance trade14. A credit to a revenue account ______.A. decreases revenuesB. increases equityC. decreases equityD. increases assets15. If the government guaranteed that anyone wishing a job would be provided one, the likely result would be ______.A. massive layoffsB. an increase in the money supplyC. an increase in inflationary expectationsD. the development of a barter system16. Given $100 000 to invest, what is the expected risk premium in dollars of investing in equities versus risk-free T-bills. Treasury bills) based on theA. $20000B. $18000C. $15000D. $1300017. Economists assume that most people take risks ______.A. because doing so is excitingB. only when they have no riskless alternativeC. very infrequentlyD. if they are compensated for taking the risks18. The Phillips Curve shows the relationship between ______.A. aggregate demand and aggregate supplyB. interest rates and inflationC. recessions and boomsD. inflation and the unemployment rate19. In a fixed exchange rate system, speculative selling of a currency is based on anticipation of .A. appreciationB. devaluationC. a foreign trade surplusD. interest rate increase20. A collecting bank is employed by ______.A. the principalB. the remitting bankC. the drawerD. the drawee, who is its customer21. The following statements describing net income are all correct except that ______.A. net income is computed in the income statement, appears in the statement of owner's equity, and increases owner's equity in the balance sheetB. net income is equal to revenues minus expensesC. net income is computed in the income statement, appears in the statement of owner's equity, and increases the amount of cash shown in the balance sheetD. net income can be determined using the account balances appearing in an adjusted trial balance22. A strong dollar encourages ______.A. travel to the United States by foreignersB. purchase of American goods by foreignersC. Americans to travel abroadD. Americans to save dollars23. In what circumstances would the beneficiary of a confirmed documentary credit not receive payment ______.A. Failure of the applicantB. Failure of the issuing bankC. Failure to fulfil the credit termsD. Failure to fulfil the commercial contract24. The balance in the owner's capital account of ABC Co. Ltd. at the beginning of the year was $65 000. During the year, the company earned revenue of $430 000 and incurred expenses of $360 000, the owner withdrew $50 000 in assets, and the balance of the Cash account increased by $10 000. At year-end, the company's net income and the year-end balance in the owner's capital account were, respectively .A. $20 000 and $95 000B. $70 000 and $95 000C. $70 000 and $85 000D. $60 000 and $75 00025. Assume the inflation rate is expected to be 5 percent and the unemployment rate is 8 percent. If workers wish to get a 2 percent real wage increase, they should bargain for a money wage increase of______.A. 3 percentB. 5 percentC. 7 percentD. 13 percent26. Which statement about portfolio diversification is correct .A. Proper diversification can reduce or eliminate systematic riskB. As more securities are added to a portfolio, total risk typically would be expected to fall at a decreasing rateC. The risk-reducing benefits of diversification do not occur meaningfully until at least 30 individual securities are included in the portfolioD. Diversification reduces the portfolio's expected return because it reduces a portfolio's total risk27. Your customer is the applicant for a documentary credit. Which of the following points would appear to be illogical if they appeared on the application form ______.A. Invoice price shown as FOB, bills of lading to be marked freight paidB. Last date for shipment one week before expiry dateC. Invoice price shown as C&F, but no insurance document requestedD. No mention of the latest date of shipment28. Portfolio theory as described by Markowitz is most concerned with ______.A. the effect of diversification on portfolio riskB. B. the elimination of systematic riskC. active portfolio management to enhance returnD. the identification of unsystematic risk29. Commercial bank deposits with the central bank are part of the bank's______.A. net worthB. demand depositsC. loan portfolioD. reserves30. Foreign trade can be conducted on the following terms except for ______.A. open accountB. documentary collectionC. documentary creditsD. public bonds31。
金融英语：FECT-1(1)单选题
B. supply of sterling will increase, demand for sterling will rise, and the exchange rate may or may not increase
C. supply of sterling will fall, demand for sterling will increase, and the exchange rate will rise
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
14. These 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
D. supply of sterling will fall, demand for sterling will fall, and the exchange rate may or may not fall
FECT综合考试试卷一
当前位置：首页. \测试. \Model Test 1. \Listening.Part One ListeningSection One (10%)Directions: In this section you will hear 10 short statements. Each statement will be spoken only once. After each statement there will be a pause. During the pause, you must read the four suggested answers marked a, b, c and d, and decide which is the best answer. Now you will hear the example:She went to the bank with Mr. Smith.You will read:A. She went home. C.She went to the bank.B. She liked Mr. smith. D.She went to Mr. Smith's house. Statement C, "She went to the bank" is the closest in meaning to the statement "She went to the bank with Mr. Smith." Therefore, you should choose answerC. Now listen to the statements.1.A. The central bank controls many factors that affect the success of banking supervision.B. The success of banking supervision depends on the controls of the central bank.C. The success of banking supervision relies on many factors that are not under the control of the central bank.D. Many factors under the control of the central bank result in the success of banking supervision.2.A. You cannot sign your name on the upper left corner that does not comply with the agreement.B. Your signature does not agree with the specimen signature on the upper left corner.C. The signature on the upper left corner is not the countersign in the agreement.D. You cannot agree with the signature on the upper left corner.3.A. The Chinese banks will not come to compete with the foreign banks in Renminbi business.B. Foreign banks will be allowed to do Renminbi business which is a challenge to the Chinese banks.C. It will be a real great challenge to the Chinese banks when the foreign banks have the right to do Renminbi business.D. In order to have real competition with the Chinese banks, foreign banks should be allowed to do Renminbi business.4.A. I remitted the money to you after the sale of my stocks.B. Your bank account had been credited with the remittance since I sold my shares last week.C. The money had already been credited to your account last week after I sold my shares.D. The money had not been remitted to you since I failed to sell my stocks last week.5.A. The bank makes profits only from its own money.B. The bank makes profits not only from the deposits but also from its own money.C. The bank makes profits with special obligations to depositors.D. The bank has special obligation to make profits.6.A. We thank you for your doing kindness to us.B. We hope you send us your check as soon as possible.C. We thank you because you provide us convenience in checking.D. You will have to pay us $50,000.7.A. The Chinese economists made a proposal that banks' savings interest rates should further be lowered.B. The Chinese economists thought banks' savings interest rates should be improved.C. The Chinese economists believed that banks' savings interest rates should be maintained.D. The Chinese economists suggested that banks' savings interest rates should be kept.8.A. We are the credit holders.B. We are the bank who can encash the card.C. We are the bank who can stop your lost card.D. We are the bank who can find your lost card.9.A. In the foreign exchange market, exchange rates are quoted by the sellers and buyers.B. In the foreign exchange market, exchange rates are quoted by commercialbanks.C. In the foreign exchange market, selling and buying of foreign exchange decide exchange rates.D. In the foreign exchange market, exchange rates are fixed by governments.10.A. The bank has the right to charge you fees if your check has bounced.B. The bank will not charge you any service commission even if your check returned.C. No one reserves the right to impose a service charge for returned cheques.D. The bank has the right to impose a charge for encashed cheques.Section Two (10%)Directions: In this section, you will hear 10 short conversations. At the end of each conversation a question will be asked about what was said. The conversations and questions will be spoken only once. During the pause, you must read the four suggested answers marked a, b, c, and d, and decide which is the best answerNow you will hear :M: Does our bank have a direct correspondent relationship with the Bradalys' Bank?W:No, we don't. So we have to advise this L/C via another bank.Q: Which of the following is right?Now you will read:A. We can advise this L/C to the Bradlays' Bank.B. The Bradlays' Bank is our correspondent.C. The L/C has to be advised by a third bank.D. We should advise this L/C by ourselves.From the conversation we know that we have to advise this L/C via another bank. The best answer is C. Therefore you should choose answer C.11.A. Her account number is 60789410B. Her account number is 60798410C. Her account number is 60798401D. Her account number is 6078914012.A. in the safeB. in the drawerC. on the deskD. in the box13.A. 1.89%B. 1.98%C. 8.19%D. none14.A. to open an account with the bankB. to exchange moneyC. to check if the remittance has arrivedD. to remit some money to her brother Tony Waller15.A. employee and bossB. broker and bank clerkC. two bank clerksD. bank clerk and customer16.A. 8 hoursB. 10 hoursC. 12 hoursD. 24hours17.A. one monthB. twelve monthsC. six monthsD. half a month18.A. draw money from her account through ATM.B. write her secret code on the card.C. forget her password.D. ask somebody to pick up her card.19.A. US$ 24,580B. US$ 28,450C. US$ 45,280D. US$ 25,48020.A. Special risks will be excluded.B. You have to pay more money for the inclusion of all risks.C. Exclusion of the special risks means more money you have to pay.D. You have to pay more premium to include a special risk.Section Three (10%)Directions: In this section, you will hear 3 short passages. At the end of each passage you will hear some questions about what was said. The passages and questions wi1l be spoken only once. During the pause, you must read the four suggested answers marked a, b, c, and d, and decide which is the best answer Questions 21--23 are based on passage 121.A. threeB. fourC. fiveD. six22.A. one-dollar billB. five-dollar billC. ten-dollar billD. twenty-dollar bill23.A. by checks and fund transfersB. by CHAPS and fund transfersC. by CHIPS and fund transfersD. by SWIFT and fund transfersQuestions 24-26 are based on passage 224.A. They will buy houses.B. They will buy cars.C. They will postpone building a new plant.D. They will hire more workers.25.A. because they affect consumers' willingness to spend or save.B. because they affect businesses' investment decisions.C. because interest rates are the cost of borrowings.D. both a and b.26.A. mortgage interest ratesB. car loan ratesC. interest rates on many different types of bondsD. current interest ratesQuestions 27-30 are based on Passage 327.A. corporateB. interbankC. mortgageD. syndicate28.A. pay all attentions to a specific area of lendingB. consider someone more important than the otherC. handle loan applications based on hard and fast ruleD. try to build up a well-balanced loan portfolio29.A. prudenceB. profitabilityC. liquidityD. safety30.A. to ensure healthy growth for the bankB. to outperform the competition in financial industryC. to make the profitsD. to achieve specific business targets你已完成了听力部分的测试，现在是否当前位置：首页. \测试. \Model Test 1. \Reading.Part two ReadingSection One (10%)Directions: There are ten statements in this section. For each statement there are four choices marked A，B，C，D. You should choose the best answer.31. If the lessor makes an equity investment equal to 20% of the equipment's original cost, and borrows the remaining 80% from a long-term creditor, and writes a noncancelable lease for the equipment, such lease is called a___________.A. operating leaseB. leveraged leaseC. direct-financing leaseD. sales-type lease32. The interest rate for borrowing funds from inter-bank market is close to, but always slightly ____________ the rate that is available from the central bank.A. lower thanB. higher thanC. as high asD. not as high as33. ___________ is a financial market in which securities that have been previously issued can be resold.A. A primary marketB. A secondary marketC. A issuing marketD. The capital market34. Of the challenging issues in Internet banking, which people care most,is _________.A. the provision of a secure platform for banking transactionsB. whether management has the creativity and vision to harness the technologyC. how to deliver high-quality products for the customers' convenienceD. whether management has the ability to satisfy customers' continually changing financial needs35. From 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 ________.A. a vostro account; a nostro accountB. a mirror account; a nostro accountC. a nostro account; a vostro accountD. a vostro account; a mirror account36. If __________, such a situation is called break-even.A. contribution margin= fixed costsB. contribution margin=total costsC. profit=expenseD. sales revenue=variable cost37. Foreign-funded enterprises may retain their export earnings if those earnings _______.A. get after SAFE approvesB. will be remitted abroadC. will be invested in local areaD. do not exceed the limit set by the SAFE38. BOT is an abbreviated form of _________.A. build-or-technologyB. build-operate-transferC. build-operate-technologyD. benefit-operate-transfer39. _________ is the foundation of private accounting, which analyzes a business's costs to help managers control expenses.A. BudgetingB. Management information systemC. Internet auditingD. Cost accounting40. Underwriting simply means that the investment banker promises to________ the securities.A. buyB. sellC. designD. issueSection Two (10%)Directions: There are 10 blanks in the following passages. For each blanks there are four choices marked A, B, C, D. You should choose the best answer.Passage OneAnother way of distinguishing markets is on the basis of the_____41_______of the securities in each market. The __42______ is a financial market in which only short-term debt instruments are traded. The ___43_____ is the market in which longer-term debt and equity instruments are traded. The securities in the former are usually more widely traded than those in the latter and so tend to be ____44______. In addition, short-term securities have_____45______fluctuations in prices than long-term securities, making them safer investments.41.A. volumeB. maturityC. issuing procedureD. kind42.A. money marketB. capital marketC. primary marketD. secondary market43.A. money marketB. capital marketC. primary marketD. secondary market44.A. more solventB. more riskC. more liquidD. safer45.A. volatileB. violentC. widerD. smallerPassage TwoIn documentary credit operations, all parties concerned deal in ___46____ and not in ____47____. The banks check exclusively on the basis of documents ___48____to them to see whether the terms of the credit have been fulfilled. They are ____49_____to verify whether the goods supplied actually agree with those specified in the credit, ____50____differences, say, between the goods invoiced and those actually delivered, nor answerable to the buyers' complaints about these differences. It is up to the buyers and sellers to settle questionables of this nature between themselves.46.A. goodsB. creditsC. documentsD. contracts47.A. goodsB. creditsC. documentsD. contracts48.A. deliveredB. presentedC. deliverD. release49.A. responsibleB. not responsibleC. boundD. willing50.A. nor liable forB. or liable forC. nor liable toD. or liable toSection Three (10%)Directions: Read the following passages, and determine whether the sentences are "Right" or "wrong". If there is not enough information to answer " right" or "wrong''. choose "Doesn't say".Passage OneNew issues of common stock come into two varieties, primary distributions and secondary distributions. Primaries are sales of stock that have never been issued before. There are two types of primary distributions--initial public offering (IPOs) and additional floats of companies' stock that will dilute each shareholder's existing holding. Of the two, the latter are more common in the new issues market for equities since they involve offerings of shares of larger, more mature companies seeking additional equity capital. Secondary distributions are sales of stock that previously existed in some form or other but are too large to be accommodated on the stock exchanges. Procedures for secondaries often follow those for primaries although the offering period is much shorter and may involve a matter of hours rather than days.The actual marketing for these issues is done by investment bankers directly to the public. On rare occasions, companies have attempted to sell their shares or bonds directly to the public, avoiding investment banking fees. Unless the company is very well known, such attempts are less than successful. The behavior of investment bankers is key to the reception of new issues and directly affects the cost of capital for a company. As a result, the choice of an investment banker is crucial for a company, and the wrong choice could affect its costs over the near term.51. Initial public offerings (IPOs) are one of the type of primary distributions,while additional floats of companies' stock belong to secondary distributions.A.RightB.WrongC.Doesn't say52. Compared with additional floats of companies' stock, initial public offering(IPOs) are more common because they involve offerings of shares larger, more mature companies seeking additional equity capital.A.RightB.WrongC.Doesn't say53.Both primary distributions and secondary distributions are issued in primary markets.A.RightB.WrongC.Doesn't say54. Few companies have attempted to see their shares or bonds directly to the public.A.RightB.WrongC.Doesn't sayPassage TwoThe simplest means of transferring funds abroad is by means of the airmail remittance order. For example, a local customer of the bank wishes to send money to a relative in Japan. The local customer goes to the United States bank and specifies where and to whom the money is to be delivered. He also indicates the amount he wishes to send, for example, USD$100. The bank prepares a letter to its correspondent bank in the town nearest to where the relative lives. In this letter, the United States bank says, "Advise and pay US dollars 100 to ( name and address ) of recipient." The letter says that this is by order of its local customer, giving his name. Then it adds, " In reimbursement, we credit your account with us." This informs the Japanese bank that its account in the United States bank has been credited USD100 (The United states bank credits the Japanese banks due to account).55. MT is the simplest means of transferring funds abroad.A.RightB.WrongC.Doesn't say56. According to the passage, the local customer of U.S. is a remitter.A.RightB.WrongC.Doesn't say57.The Japanese bank debits the U.S. bank's due from account.A.RightB.WrongC.Doesn't sayPassage ThreeTo finance the national debt, the government issues a variety of debt securities. The most widely held liquid security is the Treasury bill, which is commonly issued by the ministry of finance. However. some Treasury bills, like the Treasury bill of the U. S. government, do not actually pay interest. Instead they are issued at a discount from par (their value at maturity). The investor’s yield comes from the increase in the value of the security between the time it was purchased and the time it matures.Treasury bills are attractive to investors because they are backed by the government and therefore are virtually free of default risk. Because even if the government ran out of money it could simply print more to pay them off when they mature. The risk of unexpected changes in inflation is also low because of the short term to maturity. The markets for Treasury bills in most developed countries are deep and liquid, A deep market is one with many different buyers and sellers. A liquid market is one in which securities can be bought and sold quickly and with low transaction costs. Investors in markets that are deep and liquid have little risk that they will not be able to sell their securities when they want to.58. Treasury bills are short-term and virtually free of default risk.A.RightB.WrongC.Doesn't say59. As some treasury bills do not actually pay interest, they are not attractive to investorsA.RightB.WrongC.Doesn't say60.Investors in deep and liquid markets face immense risk that they will not be able to selltheir securities when they want to.A.RightB.WrongC.Doesn't saySection Four (20%)Directions: There are 4 passages in this sections. Each passage is followed by some questions or unfinished statements. For each of them there are four choices marked A, B, C, D. You should choose the best answer.Passage OneSince equal dollar amounts of debits and credits are entered in the accounts for every transaction recorded, the sum of the debits in the ledger must be equal to the sum of all the credits. If the computation of account balances has been accurate, it follows that the total of the accounts with debit balances must be equal to the total of the accounts with credit balances.Before using the account balances to prepare financial statements, it is desirable to prove that the total of accounts with debit balances is in fact equal to the total of accounts with credit balances. This proof of the equality of debit and credit balances is called a trial balances. A trial balance is a two-column schedule listing the names and balances of all the accounts in the order in which they appear in the ledger. The debit balances are listed in the left-hand column and the credit balances in the right-column. The totals of the two columns should agree.The trial balance provides proof that the ledger is in balance. The agreement ofthe debit and credit totals of the trial balance gives assurance that:1.Equal debits and credits have been recorded for all transactions.2.The debit or credit balance of each account has been correctly computed.3. The addition of the account balances in the trial balance has been correctly performed.Suppose that the debit and credit totals of the trial balance do not agree. This situation indicates that one or more errors have been made. Typical of such errors are (1) the entering of a debit as a credit or vice verse; (2) arithmetical mistakes in balancing accounts; (3) clerical errors in copying account balances into the trial balance; (4) listing a debit balance in the credit column of the trial balance, or vice verse; and (5) errors in addition of the trial balance.The preparation of a trial balance does not prove that transactions have been correctly analyzed and recorded in the proper accounts. If, for example, a receipt of cash were not be disclosed by the trial balance. In brief, the trial balance proves only one respect of the ledger, and that is the equality of debit and credits.61. A trial balance is a two-column schedule listing the names and balances of all the accounts to prove _______________.A. the agreement of the debit and credit totalsB. the order in which they appear in the ledgerC. the equality of account balances of financial statementsD. the order in which they appear in the recording62. Unless __________, the totals of the debit and credit of trial balance should agree.A. the debit or credit balance of each amount has been correctly computedB. debits and credits have been recorded correctly for all transactionsC. unequal debits and credits have been recorded for all transactionsD. the addition of the account balance in the trial balances has been correctly performed63.If ____________, the debit and credit totals of the trial balance do notagree.A. mistakes appear in computing balancing accountsB. a credit is entered as a debitC. a credit balance is listed in the debit columnD. All of the above64. If a payment of cash is recorded by ________, the trial balance would still balance.A. crediting the Account Payable accountB. debiting the cash accountC. debiting the Account Receivable accountD. debiting the land account65. A trial balance is a working paper which is intended ___________.A. for distribution to various outsidersB. to prepare financial statementsC. for distribution to various accountantsD. to prepare ledger accountsPassage TwoInsurance is almost as important to business as banking. It works quite simply by spreading over a large number of people, the costs or the losses which otherwise would fall on the few who actually suffer them.Fire, for instance, normally damages only a few businesses each year but almost all companies buy insurance to protectthemselves against it. What happens is that most companies pay regular small amounts of money, called the premium to insurance groups and so a large fund of money builds up. Then the few who have suffered fires claim the cost of the damages. After investigation, the claims are paid out by the insurance companies.For the operation to work, insurance companies have to calculate what is the chance or probability of certain events happening, and what the cost of making accidents good will be, and how many people will pay, what rates, to have protection. Premiums are fixed in proportion to the risk involved.There are four principles backing up every insurance contract. The first, known as indemnity, is that the insured should get back the same value as was lost. If you insure your watch against the risk of its being stolen, then the insurance company will only pay out the cost of a similar, second. hired watch unless you make a special agreement with them.The second principle is that of agreeing that the insurer has to own, or have the insurable interest in, the property covered, both at the time of affecting the insurance and at the time of loss. This is usual for policies covering fire；but the insurance on ships and their cargoes can be transferred to new owners if required.Thirdly it is necessary for the agreement to be concluded in good faith. Generally the company providing insurance cover charges a premium based on what it is told. If a company fails to mention that a warehouse sometimes contains explosives the underwriter may declare the contract not valid and refuse to pay a claim if the warehouse blows up.Finally, insurers distinguish between remote and immediate causes of an event. If there is an earthquake and a house is damaged, catches fire and is flooded by firemen when putting out the flames, the compensation due will depend on the exact words used in the detailed insurance contract. Usually companies do not provide cover against earthquake damage, so the house owner may not get any compensation for the effects of the fire or water, as these were a direct result ofthe earthquake.66. What are the four principles backing up every insurance contract?A. Indenmity, the insurable interest, premium and good faith.B. Indemnity, the cost of the damage, the exact words in the contract and theinsurableinterest.C.Indemnity, the insurable interest, good faith and remote and immediate causes of anevent.D. Indemnity, the insurable interest, the cost of the damages and good faith.67. I n Para. 2, the term "premium" means ___________A. the cost of the damageB. a sum of money paid regularly to an insurance companyC. proportion of the risk involvedD. a large fund of money68. Which of the following is NOT true according to the passage?A. Premiums are usually decided in proportion to the risk involved.B. Insurance companies often do not provide cover against earthquake damages.C. Insurance on ships and their cargoes can be transferred to new owners if required.D. Those who buy insurance can claim the cost of damages if they suffer from firescaused by an earthquake.69. Which of the following is implied, but not directly stated in the passage?A. A regular small sum of money will cover your losses.B. Insurance companies usually do not provide cover against earthquake losses.C. An insurance company can build up a large sum of money from those who pay insurance charge.D. You cannot cover the losses you suffer if the results of the investigation byinsurance company turn out not to be in your favor.70. The purpose of this passage is ___________ .A. to get you familiar with insurance businessB. to advise you to insure your propertiesC. to tell you how to get compensation from an insurance companyD. to teach you how to sign an insurance contractPassage ThreeOnce the exporter has been advised that a letter of credit has been issued in its favor, many exporters make the mistake of starting to prepare or fulfill the requirements of the foreign customer's purchase order before actually receiving the actual letter of credit from the opening or issuing bank. Unless the exporter has had good or excellent prior experience with the foreign customer and its issuing bank, the exporter runs the risk of having the goods ready for shipment, without receiving the original letter of credit. The exporter runs a risk because it may or may not be able to comply with certain terms and conditions contained in the actual original letter of credit. It is always conceivable new conditions might be added to the credit instrument. Or the goods might be shipped and arrived at the overseas port of destination without any original documents because the original L/C arrives late. Thus, the foreign customer will be unable to clear goods through customs, and the goods will be stored in a customs warehouse to accrue expensive demurrage charges.The answer to the above mentioned problem is to have the opening bank issue the letter of credit via tested telex or SWIFT to the advising or negotiating bank as the "original operative instrument" which can be presented for payment by the beneficiary. The exporter must make sure the negotiating or confirming bank, usually the advising bank, is willing to accept the aforementioned as the original operative instrument. Sometimes advising, negotiating, and even confirming banks who pay on behalf of issuing banks still want to wait for the original。
金融英语：FECT-1单选题及答案（4）
金融英语：FECT-1单选题及答案（4）1. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .A. imports automatically increaseB. currency automatically depreciatesC. exports automatically declineD. currency automatically appreciates2. Which of the following statements is not true of accounting? ______.A. Accounting is language of businessB. The user of accounting includes business, government, nonprofit organizations and individuals.C. Accounting is useful for decision makingD. Accounting is an end rather than a means to an end3. The term foreign exchange is best defined by the following statement: it is ______.A. the rate of exchange between two currenciesB. synonymous with currency exchangeC. the place in which foreign currencies is exchangedD. an instrument such as paper currency, note, and check used to make payments between countries4. What is Asset Allocation? ______.A. Buying assets of different types, risks, and potential returnsB. Buying assets with more than one brokerage accountC. The ability to buy mutual fundsD. Buying stocks for the long term5. External users of financial accounting information include all of the following except .A. suppliersB. line managersC. general publicD. creditors6. CAPM is short for .A. Capital Asset Pricing ModelB. Cash Added Price MatrixC. Capital Asset Pricing MatrixD. Cost and Price Model7. Liquidity measures the ______.A. value of an assetB. ease with which an asset can be exchangedC. usefulness of an assetD. economic and monetary reliability of an asset compared with other assets8. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.A. documents... the creditB. merchandise... the contractC. documents... the contractD. merchandise...the buyer ordered9. A barter economy is one that does not possess _______.A. any wealthB. printed currencyC. a medium of exchangeD. gold10. Which of the following is not true of airway bill? ______.A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goodsB. Airway bill is a document of title to the goodsC. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flightD. None of the above1. When a country runs a foreign trade deficit under a flexible foreign exchange rate system，its .A. imports automatically increaseB. currency automatically depreciatesC. exports automatically declineD. currency automatically appreciates2. Which of the following statements is not true of accounting? ______.A. Accounting is language of businessB. The user of accounting includes business, government, nonprofit organizations and individuals.C. Accounting is useful for decision makingD. Accounting is an end rather than a means to an end3. The term foreign exchange is best defined by the following statement: it is ______.A. the rate of exchange between two currenciesB. synonymous with currency exchangeC. the place in which foreign currencies is exchangedD. an instrument such as paper currency, note, and check used to make payments between countries4. What is Asset Allocation? ______.A. Buying assets of different types, risks, and potential returnsB. Buying assets with more than one brokerage accountC. The ability to buy mutual fundsD. Buying stocks for the long term5. External users of financial accounting information includeall of the following except .A. suppliersB. line managersC. general publicD. creditors6. CAPM is short for .A. Capital Asset Pricing ModelB. Cash Added Price MatrixC. Capital Asset Pricing MatrixD. Cost and Price Model7. Liquidity measures the ______.A. value of an assetB. ease with which an asset can be exchangedC. usefulness of an assetD. economic and monetary reliability of an asset compared with other assets8. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.A. documents... the creditB. merchandise... the contractC. documents... the contractD. merchandise...the buyer ordered9. A barter economy is one that does not possess _______.A. any wealthB. printed currencyC. a medium of exchangeD. gold10. Which of the following is not true of airway bill? ______.A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goodsB. Airway bill is a document of title to the goodsC. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flightD. None of the above11. The value of money varies _____.A. directly with the unemployment rateB. directly with the price levelC. inversely with the unemploymentD. inversely with the price level12. The economics news on the television reports that the dollar has strengthened relative to the Japanese yen. This means that ______.A. the dollar has depreciated relative to the yenB. the dollar can now purchase more yenC. the yen can now purchase more dollarsD. the US trade balance with the Japanese economy has improved13. The theory of international exchange that holds that exchange rates are set so that the price of similar goods in different countries is the same is the ______.A. price feedback theoryB. trade feedback theoryC. purchasing power parity theoryD. J-curve theory14. According to the optimal portfolio theory, where should portfolios lie? ______.A. On the efficient frontierB. Above the efficient frontierC. Under the efficient frontierD. Anywhere, as long as the portfolio is diversified15. Which of the following is not a user of management accounting information? ______.A. Store managerB. CreditorC. CEOD. CFO16. Based on the scenarios below, what is the expected return for a portfolio with the following return profile? ______.Market ConditionBear Normal BullProbability 02 0.3 05Rate of return —25% 10% 24%A. 4%B. 10%C. 20%D. 25%Use the following expectations on Stocks X and Y to answer questions 17 through 19 (round to the nearest percent).Bear Market Normal Market Bull MarketProbability 0.2 0.5 0.3Stock X_ -20% 18% 50%Stock Y -15% 20% 10%17. Financial markets serve to channel funds from ______.A. the government to contractorsB. investors to consumersC. consumers to producersD. savers to investors18. The agreements that were reached at the Bretton Woods conference in 1944 established a system .A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed-upon value of its currencyB. of floating exchange rates determined by the supply and demand of one nation's currency relative to the currency of other nationsC. that prohibited governments from intervening in the foreign exchange marketsD. in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading19. Which of the following statements is not consistent with generally accepted accounting principles relating to asset valuation? .A. Assets are originally recorded in accounting records at their cost to the business entityB. Accountants prefer to base the valuation of assets upon objective, verifiable evidence rather than upon appraisals or personal opinionC. Accountants assume that assets such as office supplies, land and buildings will be used in business operations rather than sold at current market pricesD. Subtracting total liabilities from total assets indicates what the owner's equity in the business is worth under current market conditions20. A fiscal expansion in the UK ______ the pound sterling.A. tends to appreciateB. tends to depreciateC. does not affect the price ofD. has no predictable effect on the price of答案：1.B2.D3.D4.A5.B6.A7.B8.A9.C 10.B11.D 12.B 13.C 14.A 15.B 16.B 17.A 18.A 19.D 20.A。