金融英语模拟题(二)T2P2-Reading.doc

金融英语模拟题（二）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. Which activities are not the investment banking activities? A. underwriting new issues B. financial advising C. dealing and broking D. savingstaking 32. _is the purchase of one company by another using mainly borrowed funds. A. A horizontal merger B. A leveraged buyout C. A vertical merger D. A MBO33. The bill of lading is evidence of ownership. It thus functions as a _. A. receipt for goods B. contract for delivery C. title document D. negotiable instrument34. Liquidity _. A. is a measure of how quickly an item may be converted to foreign currencies B. is a measure of how quickly an item may be converted to cash C. is a measure of how quickly an item may be converted to liabilities D. is a measure of how quickly an item may be converted to fixed capital 35. Among various worries concerning the internet banking, the first and foremost is the problem of _. A. profit B. interest C. client D. security36. According to the rules of debit and credit for balance sheet accounts _. A. decreases in asset, liabilities, and owners equity accounts are recorded by debits B. increases in liabilities and owners equity accounts are recorded bycredits C. decreases in liabilities and asset are recorded by credits D. increases in asset and owners equity are recorded by debits37. _ consist of a simultaneous sale or purchase of currency. A. Spot transactions B. Forward transactions C. Option forward transactions D. Swap transaction38. Cash inflows from financing activities for a bank exclude: _. A. receiving deposits B. issuance of equity securities (capital stock) C. issuance of debt securities ( bond, notes, mortgages) D. redemption of debt39. When a bank holds some valuables on behalf of its customer, the relationship between the bank and customer is _. A. debtor-creditor B. bailor-bailee C. principal-agent D. trustor-trustee 40. The red clause documentary credit is often used as a method of _. A. providing the seller with funds prior to shipment B. providing the buyer with funds prior to shipment C. providing the seller with funds after shipment D. providing the buyer with funds after shipment Section 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 One Commercial banks _41_many functions, some central to their main role in the economy and others more peripheral. Although lending and deposit _42_have been the epicenter of commercial banking, the last few years have witnessed a _43_in both the types and the volume of banking services. This surge has _44_in part by government _45_,but most importantly by competitive pressures.41. A. do B. entail C. perform D. work 42. A. allocating B. taking C. saving D. mobilizing43. A. increase B. improvement C. decrease D. surge44. A. been induced B. caused C. attributed D. been45. A. relaxation B. control C. regulation D. deregulation Passage Two There are generally several types of credits. A(n) _46_ guarantees payment to the beneficiary, provided that the credit terms and conditions are met and the standing of the advising bank in the beneficiarys country is sound. A(n) _47_ may be cancelled at any time up to the moment the advising bank pays. This type of credit is _48_ favorable to the exporter. There is a risk that goods may be shipped and the credit revoked before documents are presented to the advising bank. A(n) _49_ may not be cancelled or even amended without the consent of all the parties involved. This type of credit guarantees that no single party will revoke the contract already signed. A(n) _50_, like a commercial credit, is a promise by the issuer to honor the beneficiarys presentation of the credit.46. A. stand-by credit B. revocable credit C. irrevocable credit D. confirmed credit47. A. confirmed credit B. revocable credit C. irrevocable credit D. stand-by credit48. A. the most B. the least C. far D. much49. A. confirmed credit B. revocable credit C. irrevocable credit D. stand-by credit50. A. stand-by credit B. revocable credit C. irrevocable credit D. confirmed credit Section 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 Doesnt say. Passage One Internet banking has many advantages for banks. It is much cheaper to service a customer who makes contact only by phone, interactive TV, computer or other terminals, doing without the expensive branch network. Nevertheless, with Internet banking, customers do much of the basic data inputting themselves, further saving staff time of banks. Banks can invest the saved resources of human power and capital on utilizing the information of its customers when they are transacting, i. e. to route, analyze, and integrate data into meaningful patterns. Processed customer information is and will remain to be an invaluable asset of banks. And there is an element of self selection by higher earning customers - the Internet banking customers tend to be those who are relatively wealthy and generate the banks profits. These advantages therefore suggest that the Internet is regarded as an increasingly important commercial tool by a growing number of banks.51. Internet banking services customers by phone, interactive TV, computer or other terminals. A. Right B.Wrong C.Doesnt say52. Internet banking can save human power and capital. A.Right B.Wrong C.Doesnt say53. Internet banking has many disadvantages for banks such as the risks and uncertainty of outcome. A.Right B.Wrong C.Doesnt say Passage Two Revocable credit is the one which can be amended or cancelled at any time, but the issuing bank is bound to pay drawing under the credit negotiated by the advising bank or the transmitting bank prior to the receipt by it of the notice of revocation or of amendment. An irrevocable credit, however, carries the irrevocable undertaking of the issuing bank to pay all drawings made in terms of the credit. Such a credit can only be amended or cancelled with the consent of all parties to it, that is the applicant, the issuing bank, the intermediary bank, if any, and the beneficiary.Where the confirmation of an intermediary bank is added to an irrevocable letter of credit, the credit is a confirmed credit, or more exactly, a confirmed irrevocable credit, and such a confirmation constitutes a definite undertaking of the confirming bank in addition to the undertaking of the issuing bank.54. A revocable credit can be amended in any circumstances. A. Right B. Wrong C. Doesnt say55. An irrevocable confirmed credit gives the beneficiary a double assurance of payment. A. Right B. Wrong C. Doesnt say56. An irrevocable credit cannot be cancelled. A. Right B. Wrong C. Doesnt say57. Where the confirmation of intermediary bank is added to a revocable letter of credit, the credit is a confirmed revocable credit. A. Right B. Wrong C. Doesnt say Passage ThreeThe source of foreign exchange for overseas investment by domestic entities are subject to review by the SAFE before the application for such investment is filed with the relevant government agencies.Profits or other foreign exchange income of Chinese investors from their overseas investment must be remitted home within eight months after the close of each local accounting year and surrendered or kept in foreign exchange accounts in accordance with the regulations. Unless otherwise approved by the SAFE, Chinese investors may not divert foreign exchange receipts to any other purposes or keep them abroad. Whenever an enterprise winds up its overseas business, the investor shall repatriate all of the assets.58. SAFE is the abbreviation of the Stated Administration of Foreign Exchange. A. Right B. Wrong C. Doesnt say59. When a corporation ends its overseas business, the investor shall repatriate all of the assets. A. Right B. Wrong C. Doesnt say60. Chinese investors cannot divert foreign exchange receipts to any otherpurposes or keep them abroad. A.Right B.Wrong C.Doesnt say Section 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 OneA revolving documentary credit is one by which, under the terms and conditions thereof, the amount is renewed or reinstated without specific amendments to the documentary credit being required. The revolving documentary credit may be revocable or irrevocable, and may revolve in relation to time or value.In the case of a documentary credit that revolves in relation to time, e. g. which is initially available for up to USD15, 000. 00 per month during a fixed period of time, say, six months, the documentary credit is automatically available for USD15, 000. 00 each month irrespective of whether any sum was drawn during the previous month. A documentary credit of this nature can be cumulative or non-cumulative. If it is stated to be cumulative,any sum not utilised during the first period carries over and may be utilised during a subsequent period. If it is non- cumulative, any sum not utilised in a period ceases to be available, that is, it is not carried over to a subsequent period. It must be remembered that under this kind of documentary credit and following this example, the obligations of the issuing bank would be for USD90,000.00, i.e. six revolving periods each for USD15, 000. 00. Thus while the face value of the documentary credit is given as USD15, 000. 00 the total undertaking of the issuing bank is for the full value that might be drawn.In the case of a documentary credit that revolves in relation to value, the amount is reinstated utilisation within a given overall period of validity. The documentary credit may provide for automatic reinstatement immediately upon presentation of the specified documents, or it may provide for reinstatement only after receipt by the issuing bank of those documents or another stated condition.This kind of documentary credit involves the buyer and the banks in an incalculable liability. For that reason, it is not in common use. To maintain a degree of control, it would be necessary to specify the overall amount that may be drawn under the documentary credit. Such amount would have to be decided by the buyer and the seller to meet their requirements, and would have to be agreed to by the issuing bank. 61. Whats the correct definition of revolving documentary credit? A. A revolving documentary credit is one by which, under the terms and conditions thereof, the amount is reinstated without specific amendments to whichever kinds of credit the customer required. B. A revolving documentary credit is one by which, under the terms and conditions thereof, the tenor is extended without specific amendmentsto the documentary credit being required. C. A revolving documentary credit is one by which, under the terms and conditions thereof, the amount is renewed with specific amendments tothe documentary credit being required. D. A revolving documentary credit is one by which, under the terms and conditions thereof, the amount is reinstated without specific amendments to the documentary credit being required. 62. Ceases to in Line 11 probably means _. A. continue B. suspend to C. stop D. carry over63. Which of the following statements is true? A. The revolving documentary credit may revolve according to the amount and time. B. A revolving documentary credit must be irrevocable. C. A revolving documentary credit must be revocable. D. The amount of a revolving documentary credit cannot be cumulated.64. When is the amount reinstated in the case of a documentary credit thatrevolves in relation to value? A. Just on presentation of specified documents. B. Only after the issuing bank receives those documents. C. Under the stated condition. D. All of above.65. The documentary credit that revolves in relation to value isnt commonlyused because _. A. the overall amount that may be drawn under the documentary credit has been specified B. such credit involves the buyer and the bank in an incalculable liabilities C. it makes the issuing bank entail an incalculable liabilities. D. the documentary credit may provide for reinstatement immediately and automatically. Passage TwoPacking loan is a pre-shipment financing facility. The exporter can obtain packing loan from a bank when it receives the letter of credit issued in its favour. The money required is to finance the business between the commencement of the manufacturing process and the despatch of goods. This period is identical for the exporter. Usually, the finance available will not exceed 90% of the L/C amount. After shipment, the exporter can present the documents to a bank for negotiation, and repay the packing loan.For the security, the lending bank must keep in touch with the exporter, and urge them to dispatch the goods and present document in time. If the exporter fails to present documents after the expiry of the L/C, the bank will ask them to repay according to the terms of the loan agreement. 66. The exporter can get packing loan from a bank when_. A. the importer issues a L/C. B. the exporter presents the documents to the bank C. it receives the letter of credit issued in the exporters favour D. it receives the letter of credit issued in the banks favour 67. Commencement in Line 3 probably means _. A. ending B. beginning C. implementation D. finish68. When does the exporter repay the packing loan? A. After shipment. B. Just after finishing the manufacturing process. C. Upon presentation of the documents to a bank for negotiation. D. Both A and C69. Which of the following statements is not true? A. Packing loan is a pre-shipment financing facility. B. The amount of packing loan will not exceed 90% of the L/C amount. C. Packing loan is just granted to the exporter. D. If the exporter fails to present documents after the expiry of the L/C, the bank will ask them to repay according to the terms of the L/C agreement. Passage ThreeAn option contract is a risk management or control tool designed to mitigate the effects of possible adverse movements in the price of a security or commodity. Depending upon the right acquired by the taker, options are divided into calls and puts. A call option gives the taker (just the buyer of the option) the right (but not the obligation) to buy at a fixed price, while a put option confers upon him the right (but not the obligation) to sell at a fixed price. The fixed price at which the taker may buy or sell the underlying commodity or security, a procedure known as exercising the option, is called the striking price. If the striking price is identical to the current market price of the commodity or security (i.e. the prevailing price for delivery and payment on expiration date), the option is said to be at the money. When the striking price of a call option is lower than the current market price it is in the money. When it is higher than current market price it is out of the money. In contrast, the put option is in the money when the striking price is higher than the current market price or out of the money when the striking prices lower than the current market price.It will by now clear that there are two basic prices in an options contract, the price paid for the purchase of the actual option, which is the premium, and the fixed price at which the option may be exercised, which is the striking price. In turn, the price of the premium is itself made up of two component parts, the intrinsic value and extrinsic value (often known as the time value). Intrinsic value may be defined as the amount by which an option is in the money. The calculation of a proper time value for an option is far more complex. It is influenced by four different factors -the duration of the option, the historical price volatility of the underlying commodity or security, current interest rates and the supply of and demand for the option. 70. Depending on _, options are divided into calls and puts. A. the right acquired by the seller B. the right acquired by the buyer C. the obligation acquired by the seller D. the obligation acquired by the seller71. A put option_. A. gives the buyer the right to sell the underlying commodity at a fixed price B. gives the seller the right to buy the underlying commodity at a fixed price C. confers upon the seller the right to buy