金融英语模拟试题

Text1PartOneListeningSectionOne(10%)Directions:Inthissectionyouwillhear10shortstatements.Eachstatementwillbespokenonlyonce.Aftereachstatementtherewillbeapause.Duringthepause,youmustreadthefoursuggestedanswersmarkeda,b,candd,anddecidewhichisthebestanswer.Nowyouwillheartheexample:ShewenttothebankwithMr.Smith.Youwillread:A.Shewenthome. B.ShelikedMr.smith.C.Shewenttothebank. D.ShewenttoMr.Smith'shouse.StatementC,"Shewenttothebank"istheclosestinmeaningtothestatement"ShewenttothebankwithMr.Smith."Therefore,youshouldchooseanswerC.Nowlistentothestatements.1.A.Thecentralbankcontrolsmanyfactorsthataffectthesuccessofbankingsupervision.B.Thesuccessofbankingsupervisiondependsonthecontrolsofthecentralbank.C.Thesuccessofbankingsupervisionreliesonmanyfactorsthatarenotunderthecontrolofthecentralbank.D.Manyfactorsunderthecontrolofthecentralbankresultinthesuccessofbankingsupervision.2.A.Youcannotsignyournameontheupperleftcornerthatdoesnotcomplywiththeagreement.B.Yoursignaturedoesnotagreewiththespecimensignatureontheupperleftcorner.C.Thesignatureontheupperleftcornerisnotthecountersignintheagreement.D.Youcannotagreewiththesignatureontheupperleftcorner.3.A.TheChinesebankswillnotcometocompetewiththeforeignbanksinRenminbibusiness.B.ForeignbankswillbeallowedtodoRenminbibusinesswhichisachallengetotheChinesebanks.C.ItwillbearealgreatchallengetotheChinesebankswhentheforeignbankshavetherighttodoRenminbibusiness.D.InordertohaverealcompetitionwiththeChinesebanks,foreignbanksshouldbeallowedtodoRenminbibusiness.4.A.Iremittedthemoneytoyouafterthesaleofmystocks.B.YourbankaccounthadbeencreditedwiththeremittancesinceIsoldmyshareslastweek.C.ThemoneyhadalreadybeencreditedtoyouraccountlastweekafterIsoldmyshares.D.ThemoneyhadnotbeenremittedtoyousinceIfailedtosellmystockslastweek.5.A.Thebankmakesprofitsonlyfromitsownmoney.B.Thebankmakesprofitsnotonlyfromthedepositsbutalsofromitsownmoney.C.Thebankmakesprofitswithspecialobligationstodepositors.D.Thebankhasspecialobligationtomakeprofits.6.A.Wethankyouforyourdoingkindnesstous.B.Wehopeyousendusyourcheckassoonaspossible.C.Wethankyoubecauseyouprovideusconvenienceinchecking.D.Youwillhavetopayus$50,000.7.A.TheChineseeconomistsmadeaproposalthatbanks'savingsinterestratesshouldfurtherbelowered.B.TheChineseeconomiststhoughtbanks'savingsinterestratesshouldbeimproved.C.TheChineseeconomistsbelievedthatbanks'savingsinterestratesshouldbemaintained.D.TheChineseeconomistssuggestedthatbanks'savingsinterestratesshouldbekept.8.A.Wearethecreditholders.B.Wearethebankwhocanencashthecard.C.Wearethebankwhocanstopyourlostcard.D.Wearethebankwhocanfindyourlostcard.9.A.Intheforeignexchangemarket,exchangeratesarequotedbythesellersandbuyers.B.Intheforeignexchangemarket,exchangeratesarequotedbycommercialbanks.C.Intheforeignexchangemarket,sellingandbuyingofforeignexchangedecideexchangerates.D.Intheforeignexchangemarket,exchangeratesarefixedbygovernments.10.A.Thebankhastherighttochargeyoufeesifyourcheckhasbounced.B.Thebankwillnotchargeyouanyservicecommissionevenifyourcheckreturned.C.Noonereservestherighttoimposeaservicechargeforreturnedcheques.D.Thebankhastherighttoimposeachargeforencashedcheques.SectionTwo(10%)Directions:Inthissection,youwillhear10shortconversations.Attheendofeachconversationaquestionwillbeaskedaboutwhatwassaid.Theconversationsandquestionswillbespokenonlyonce.Duringthepause,youmustreadthefoursuggestedanswersmarkeda,b,c,andd,anddecidewhichisthebestanswerNowyouwillhear:M:DoesourbankhaveadirectcorrespondentrelationshipwiththeBradalys'Bank?W:No,wedon't.SowehavetoadvisethisL/Cviaanotherbank.Q:Whichofthefollowingisright?Nowyouwillread:A.WecanadvisethisL/CtotheBradlays'Bank. B.TheBradlays'Bankisourcorrespondent.C.TheL/Chastobeadvisedbyathirdbank. D.WeshouldadvisethisL/Cbyourselves.FromtheconversationweknowthatwehavetoadvisethisL/Cviaanotherbank.ThebestanswerisC.ThereforeyoushouldchooseanswerC.11.A.Heraccountnumberis60789410 B.Heraccountnumberis60798410C.Heraccountnumberis60798401 D.Heraccountnumberis6078914012.A.inthesafe B.inthedrawer C.onthedesk D.inthebox13.A.1.89% B.1.98% C.8.19% D.none14.A.toopenanaccountwiththebank B.toexchangemoneyC.tocheckiftheremittancehasarrived D.toremitsomemoneytoherbrotherTonyWaller15.A.employeeandbossB.brokerandbankclerkC.twobankclerksD.bankclerkandcustomer16.A.8hoursB.10hours C.12hoursD.24hours17.A.onemonthB.twelvemonths C.sixmonthsD.halfamonth18.A.drawmoneyfromheraccountthroughATM. B.writehersecretcodeonthecard.C.forgetherpassword. D.asksomebodytopickuphercard.19.A.US$24,580B.US$28,450 C.US$45,28020.A.Specialriskswillbeexcluded. B.Youhavetopaymoremoneyfortheinclusionofallrisks.C.Exclusionofthespecialrisksmeansmoremoneyyouhavetopay.D.Youhavetopaymorepremiumtoincludeaspecialrisk.SectionThree(10%)Directions:Inthissection,youwillhear3shortpassages.Attheendofeachpassageyouwillhearsomequestionsaboutwhatwassaid.Thepassagesandquestionswi1lbespokenonlyonce.Duringthepause,youmustreadthefoursuggestedanswersmarkeda,b,c,andd,anddecidewhichisthebestanswerQuestions21--23arebasedonpassage121.A.threeB.fourC.fiveD.six22.A.one-dollarbillB.five-dollarbill C.ten-dollarbillD.twenty-dollarbill23.A.bychecksandfundtransfers B.byCHAPSandfundtransfersC.byCHIPSandfundtransfers D.bySWIFTandfundtransfersQuestions24-26arebasedonpassage224.A.Theywillbuyhouses.B.Theywillbuycars.C.Theywillpostponebuildinganewplant.D.Theywillhiremoreworkers.25.A.becausetheyaffectconsumers'willingnesstospendorsave.B.becausetheyaffectbusinesses'investmentdecisions.C.becauseinterestratesarethecostofborrowings. D.bothaandb.26.A.mortgageinterestrates B.carloanratesC.interestratesonmanydifferenttypesofbonds D.currentinterestratesQuestions27-30arebasedonPassage327.A.corporateB.interbank C.mortgageD.syndicate28.A.payallattentionstoaspecificareaoflending B.considersomeonemoreimportantthantheotherC.handleloanapplicationsbasedonhardandfastrule D.trytobuildupawell-balancedloanportfolio29. A.prudenceB.profitability C.liquidityD.safety30. A.toensurehealthygrowthforthebank B.tooutperformthecompetitioninfinancialindustryC.tomaketheprofits D.toachievespecificbusinesstargetsParttwoReadingSectionOne(10%)Directions:Therearetenstatementsinthissection.ForeachstatementtherearefourchoicesmarkedA，B，C，D.Youshouldchoosethebestanswer.31.Ifthelessormakesanequityinvestmentequalto20%oftheequipment'soriginalcost,andborrowstheremaining80%fromalong-termcreditor,andwritesanoncancelableleasefortheequipment,suchleaseiscalleda___________.A.operatinglease B.leveragedleaseC.direct-financinglease D.sales-typelease32.Theinterestrateforborrowingfundsfrominter-bankmarketiscloseto,butalwaysslightly____________theratethatisavailablefromthecentralbank.A.lowerthanB.higherthan C.ashighasD.notashighas33.___________isafinancialmarketinwhichsecuritiesthathavebeenpreviouslyissuedcanberesold.A.AprimarymarketB.AsecondarymarketC.AissuingmarketD.Thecapitalmarket34.OfthechallengingissuesinInternetbanking,whichpeoplecaremost,is_________.A.theprovisionofasecureplatformforbankingtransactionsB.whethermanagementhasthecreativityandvisiontoharnessthetechnologyC.howtodeliverhigh-qualityproductsforthecustomers'convenienceD.whethermanagementhastheabilitytosatisfycustomers'continuallychangingfinancialneeds35.FromaChineseBank'spointofview,thecurrencyaccountwhichitmaintainsabroadisknownas_______,whileaRMBaccountoperatedinChinaforaforeignbankistermed________.A.avostroaccount;anostroaccount B.amirroraccount;anostroaccountC.anostroaccount;avostroaccount D.avostroaccount;amirroraccount36.If__________,suchasituationiscalledbreak-even.A.contributionmargin=fixedcosts B.contributionmargin=totalcostsC.profit=expense D.salesrevenue=variablecost37.Foreign-fundedenterprisesmayretaintheirexportearningsifthoseearnings_______.A.getafterSAFEapproves B.willberemittedabroadC.willbeinvestedinlocalarea D.donotexceedthelimitsetbytheSAFE38.BOTisanabbreviatedformof_________.A.build-or-technology B.build-operate-transferC.build-operate-technology D.benefit-operate-transfer39._________isthefoundationofprivateaccounting,whichanalyzesabusiness'scoststohelpmanagerscontrolexpenses.A.Budgeting B.ManagementinformationsystemC.Internetauditing D.Costaccounting40.Underwritingsimplymeansthattheinvestmentbankerpromisesto________thesecurities.A.buyB.sellC.designD.issueSectionTwo(10%)Directions:Thereare10blanksinthefollowingpassages.ForeachblankstherearefourchoicesmarkedA,B,C,D.Youshouldchoosethebestanswer.PassageOneAnotherwayofdistinguishingmarketsisonthebasisofthe_____41_______ofthesecuritiesineachmarket.The__42______isafinancialmarketinwhichonlyshort-termdebtinstrumentsaretraded.The___43_____isthemarketinwhichlonger-termdebtandequityinstrumentsaretraded.Thesecuritiesintheformerareusuallymorewidelytradedthanthoseinthelatterandsotendtobe____44______.Inaddition,short-termsecuritieshave_____45______fluctuationsinpricesthanlong-termsecurities,makingthemsaferinvestments.41A.volume B.maturity C.issuingprocedure 42.A.moneymarket B.capitalmarket C.primarymarket D.secondarymarket43.A.moneymarketB.capitalmarket C.primarymarket D.secondarymarket44.A.moresolventB.morerisk C.moreliquid D.safer45A.volatile B.violent C.wider PassageTwoIndocumentarycreditoperations,allpartiesconcerneddealin___46____andnotin____47____.Thebankscheckexclusivelyonthebasisofdocuments___48____tothemtoseewhetherthetermsofthecredithavebeenfulfilled.Theyare____49_____toverifywhetherthegoodssuppliedactuallyagreewiththosespecifiedinthecredit,____50____differences,say,betweenthegoodsinvoicedandthoseactuallydelivered,noranswerabletothebuyers'complaintsaboutthesedifferences.Itisuptothebuyersandsellerstosettlequestionablesofthisnaturebetweenthemselves.46.A.goods B.credits C.documents D.contracts47.A.goods B.credits C.documents D.contracts48.A.delivered B.presented C.deliver D.release49.A.responsible B.notresponsible C.bound D.willing50.A.norliablefor B.orliablefor C.norliableto D.orliabletoSectionThree(10%)Directions:Readthefollowingpassages,anddeterminewhetherthesentencesare"Right"or"wrong".Ifthereisnotenoughinformationtoanswer"right"or"wrong''.choose"Doesn'tsay".PassageOneNewissuesofcommonstockcomeintotwovarieties,primarydistributionsandsecondarydistributions.Primariesaresalesofstockthathaveneverbeenissuedbefore.Therearetwotypesofprimarydistributions--initialpublicoffering(IPOs)andadditionalfloatsofcompanies'stockthatwilldiluteeachshareholder'sexistingholding.Ofthetwo,thelatteraremorecommoninthenewissuesmarketforequitiessincetheyinvolveofferingsofsharesoflarger,morematurecompaniesseekingadditionalequitycapital.Secondarydistributionsaresalesofstockthatpreviouslyexistedinsomeformorotherbutaretoolargetobeaccommodatedonthestockexchanges.Proceduresforsecondariesoftenfollowthoseforprimariesalthoughtheofferingperiodismuchshorterandmayinvolveamatterofhoursratherthandays.Theactualmarketingfortheseissuesisdonebyinvestmentbankersdirectlytothepublic.Onrareoccasions,companieshaveattemptedtoselltheirsharesorbondsdirectlytothepublic,avoidinginvestmentbankingfees.Unlessthecompanyisverywellknown,suchattemptsarelessthansuccessful.Thebehaviorofinvestmentbankersiskeytothereceptionofnewissuesanddirectlyaffectsthecostofcapitalforacompany.Asaresult,thechoiceofaninvestmentbankeriscrucialforacompany,andthewrongchoicecouldaffectitscostsoverthenearterm.51.Initialpublicofferings(IPOs)areoneofthetypeofprimarydistributions,whileadditionalfloatsofcompanies'stockbelongtosecondarydistributions.A.RightB.WrongC.Doesn'tsay52.Comparedwithadditionalfloatsofcompanies'stock,initialpublicoffering(IPOs)aremorecommonbecausetheyinvolveofferingsofshareslarger,morematurecompaniesseekingadditionalequitycapital.A.RightB.WrongC.Doesn'tsay53.Bothprimarydistributionsandsecondarydistributionsareissuedinprimarymarkets.A.RightB.WrongC.Doesn'tsay54.Fewcompanieshaveattemptedtoseetheirsharesorbondsdirectlytothepublic.A.RightB.WrongC.Doesn'tsayPassageTwoThesimplestmeansoftransferringfundsabroadisbymeansoftheairmailremittanceorder.Forexample,alocalcustomerofthebankwishestosendmoneytoarelativeinJapan.ThelocalcustomergoestotheUnitedStatesbankandspecifieswhereandtowhomthemoneyistobedelivered.Healsoindicatestheamounthewishestosend,forexample,USD$100.Thebankpreparesalettertoitscorrespondentbankinthetownnearesttowheretherelativelives.Inthisletter,theUnitedStatesbanksays,"AdviseandpayUSdollars100to(nameandaddress)ofrecipient."Thelettersaysthatthisisbyorderofitslocalcustomer,givinghisname.Thenitadds,"Inreimbursement,wecredityouraccountwithus."ThisinformstheJapanesebankthatitsaccountintheUnitedStatesbankhasbeencreditedUSD100(TheUnitedstatesbankcreditstheJapanesebanksduetoaccount).55.MTisthesimplestmeansoftransferringfundsabroad.A.RightB.WrongC.Doesn'tsay56.Accordingtothepassage,thelocalcustomerofU.S.isaremitter.A.RightB.WrongC.Doesn'tsay57.TheJapanesebankdebitstheU.S.bank'sduefromaccount.A.RightB.WrongC.Doesn'tsayPassageThreeTofinancethenationaldebt,thegovernmentissuesavarietyofdebtsecurities.ThemostwidelyheldliquidsecurityistheTreasurybill,whichiscommonlyissuedbytheministryoffinance.However.someTreasurybills,liketheTreasurybilloftheU.S.government,donotactuallypayinterest.Insteadtheyareissuedatadiscountfrompar(theirvalueatmaturity).Theinvestor’syieldcomesfromtheincreaseinthevalueofthesecuritybetweenthetimeitwaspurchasedandthetimeitmatures.Treasurybillsareattractivetoinvestorsbecausetheyarebackedbythegovernmentandthereforearevirtuallyfreeofdefaultrisk.Becauseevenifthegovernmentranoutofmoneyitcouldsimplyprintmoretopaythemoffwhentheymature.Theriskofunexpectedchangesininflationisalsolowbecauseoftheshorttermtomaturity.ThemarketsforTreasurybillsinmostdevelopedcountriesaredeepandliquid,Adeepmarketisonewithmanydifferentbuyersandsellers.Aliquidmarketisoneinwhichsecuritiescanbeboughtandsoldquicklyandwithlowtransactioncosts.Investorsinmarketsthataredeepandliquidhavelittleriskthattheywillnotbeabletoselltheirsecuritieswhentheywantto.58.Treasurybillsareshort-termandvirtuallyfreeofdefaultrisk.A.RightB.WrongC.Doesn'tsay59.Assometreasurybillsdonotactuallypayinterest,theyarenotattractivetoinvestorsA.RightB.WrongC.Doesn'tsay60.Investorsindeepandliquidmarketsfaceimmenseriskthattheywillnotbeabletoselltheirsecuritieswhentheywantto.A.RightB.WrongC.Doesn'tsaySectionFour(20%)Directions:Thereare4passagesinthissections.Eachpassageisfollowedbysomequestionsorunfinishedstatements.ForeachofthemtherearefourchoicesmarkedA,B,C,D.Youshouldchoosethebestanswer.PassageOneSinceequaldollaramountsofdebitsandcreditsareenteredintheaccountsforeverytransactionrecorded,thesumofthedebitsintheledgermustbeequaltothesumofallthecredits.Ifthecomputationofaccountbalanceshasbeenaccurate,itfollowsthatthetotaloftheaccountswithdebitbalancesmustbeequaltothetotaloftheaccountswithcreditbalances.Beforeusingtheaccountbalancestopreparefinancialstatements,itisdesirabletoprovethatthetotalofaccountswithdebitbalancesisinfactequaltothetotalofaccountswithcreditbalances.Thisproofoftheequalityofdebitandcreditbalancesiscalledatrialbalances.Atrialbalanceisatwo-columnschedulelistingthenamesandbalancesofalltheaccountsintheorderinwhichtheyappearintheledger.Thedebitbalancesarelistedintheleft-handcolumnandthecreditbalancesintheright-column.Thetotalsofthetwocolumnsshouldagree.Thetrialbalanceprovidesproofthattheledgerisinbalance.Theagreementofthedebitandcredittotalsofthetrialbalancegivesassurancethat:1.Equaldebitsandcreditshavebeenrecordedforalltransactions.2.Thedebitorcreditbalanceofeachaccounthasbeencorrectlycomputed.3.Theadditionoftheaccountbalancesinthetrialbalancehasbeencorrectlyperformed.Supposethatthedebitandcredittotalsofthetrialbalancedonotagree.Thissituationindicatesthatoneormoreerrorshavebeenmade.Typicalofsucherrorsare(1)theenteringofadebitasacreditorviceverse;(2)arithmeticalmistakesinbalancingaccounts;(3)clericalerrorsincopyingaccountbalancesintothetrialbalance;(4)listingadebitbalanceinthecreditcolumnofthetrialbalance,orviceverse;and(5)errorsinadditionofthetrialbalance.Thepreparationofatrialbalancedoesnotprovethattransactionshavebeencorrectlyanalyzedandrecordedintheproperaccounts.If,forexample,areceiptofcashwerenotbedisclosedbythetrialbalance.Inbrief,thetrialbalanceprovesonlyonerespectoftheledger,andthatistheequalityofdebitandcredits.61.Atrialbalanceisatwo-columnschedulelistingthenamesandbalancesofalltheaccountstoprove_______________.A.theagreementofthedebitandcredittotalsB.theorderinwhichtheyappearintheledgerC.theequalityofaccountbalancesoffinancialstatementsD.theorderinwhichtheyappearintherecording62.Unless__________,thetotalsofthedebitandcreditoftrialbalanceshouldagree.A.thedebitorcreditbalanceofeachamounthasbeencorrectlycomputedB.debitsandcreditshavebeenrecordedcorrectlyforalltransactionsC.unequaldebitsandcreditshavebeenrecordedforalltransactionsD.theadditionoftheaccountbalanceinthetrialbalanceshasbeencorrectlyperformed63.If____________,thedebitandcredittotalsofthetrialbalancedonotagree.A.mistakesappearincomputingbalancingaccounts B.acreditisenteredasadebitC.acreditbalanceislistedinthedebitcolumn D.Alloftheabove64.Ifapaymentofcashisrecordedby________,thetrialbalancewouldstillbalance.A.creditingtheAccountPayableaccount B.debitingthecashaccountC.debitingtheAccountReceivableaccount D.debitingthelandaccount65.Atrialbalanceisaworkingpaperwhichisintended___________.A.fordistributiontovariousoutsiders B.topreparefinancialstatementsC.fordistributiontovariousaccountants D.toprepareledgeraccountsPassageTwoInsuranceisalmostasimportanttobusinessasbanking.Itworksquitesimplybyspreadingoveralargenumberofpeople,thecostsorthelosseswhichotherwisewouldfallonthefewwhoactuallysufferthem.Fire,forinstance,normallydamagesonlyafewbusinesseseachyearbutalmostallcompaniesbuyinsurancetoprotectthemselvesagainstit.Whathappensisthatmostcompaniespayregularsmallamountsofmoney,calledthepremiumtoinsurancegroupsandsoalargefundofmoneybuildsup.Thenthefewwhohavesufferedfiresclaimthecostofthedamages.Afterinvestigation,theclaimsarepaidoutbytheinsurancecompanies.Fortheoperationtowork,insurancecompanieshavetocalculatewhatisthechanceorprobabilityofcertaineventshappening,andwhatthecostofmakingaccidentsgoodwillbe,andhowmanypeoplewillpay,whatrates,tohaveprotection.Premiumsarefixedinproportiontotheriskinvolved.Therearefourprinciplesbackingupeveryinsurancecontract.Thefirst,knownasindemnity,isthattheinsuredshouldgetbackthesamevalueaswaslost.Ifyouinsureyourwatchagainsttheriskofitsbeingstolen,thentheinsurancecompanywillonlypayoutthecostofasimilar,second.hiredwatchunlessyoumakeaspecialagreementwiththem.Thesecondprincipleisthatofagreeingthattheinsurerhastoown,orhavetheinsurableinterestin,thepropertycovered,bothatthetimeofaffectingtheinsuranceandatthetimeofloss.Thisisusualforpoliciescoveringfire；buttheinsuranceonshipsandtheircargoescanbetransferredtonewownersifrequired.Thirdlyitisnecessaryfortheagreementtobeconcludedingoodfaith.Generallythecompanyprovidinginsurancecoverchargesapremiumbasedonwhatitistold.Ifacompanyfailstomentionthatawarehousesometimescontainsexplosivestheunderwritermaydeclarethecontractnotvalidandrefusetopayaclaimifthewarehouseblowsup.Finally,insurersdistinguishbetweenremoteandimmediatecausesofanevent.Ifthereisanearthquakeandahouseisdamaged,catchesfireandisfloodedbyfiremenwhenputtingouttheflames,thecompensationduewilldependontheexactwordsusedinthedetailedinsurancecontract.Usuallycompaniesdonotprovidecoveragainstearthquakedamage,sothehouseownermaynotgetanycompensationfortheeffectsofthefireorwater,asthesewereadirectresultoftheearthquake.66.Whatarethefourprinciplesbackingupeveryinsurancecontract?A.Indenmity,theinsurableinterest,premiumandgoodfaith.B.Indemnity,thecostofthedamage,theexactwordsinthecontractandtheinsurableinterest.C.Indemnity,theinsurableinterest,goodfaithandremoteandimmediatecausesofanevent.D.Indemnity,theinsurableinterest,thecostofthedamagesandgoodfaith.67.InPara.2,theterm"premium"means___________A.thecostofthedamageB.asumofmoneypaidregularlytoaninsurancecompanyC.proportionoftheriskinvolvedD.alargefundofmoney68.WhichofthefollowingisNOTtrueaccordingtothepassage?A.Premiumsareusuallydecidedinproportiontotheriskinvolved.B.Insurancecompaniesoftendonotprovidecoveragainstearthquakedamages.C.Insuranceonshipsandtheircargoescanbetransferredtonewownersifrequired.D.Thosewhobuyinsurancecanclaimthecostofdamagesiftheysufferfromfirescausedbyanearthquake.69.Whichofthefollowingisimplied,butnotdirectlystatedinthepassage?A.Aregularsmallsumofmoneywillcoveryourlosses.B.Insurancecompaniesusuallydonotprovidecoveragainstearthquakelosses.C.Aninsurancecompanycanbuildupalargesumofmoneyfromthosewhopayinsurancecharge.D.Youcannotcoverthelossesyousufferiftheresultsoftheinvestigationbyinsurancecompanyturnoutnottobeinyourfavor.70.Thepurposeofthispassageis___________.A.togetyoufamiliarwithinsurancebusinessB.toadviseyoutoinsureyourpropertiesC.totellyouhowtogetcompensationfromaninsurancecompanyD.toteachyouhowtosignaninsurancecontractPassageThreeOncetheexporterhasbeenadvisedthataletterofcredithasbeenissuedinitsfavor,manyexportersmakethemistakeofstartingtoprepareorfulfilltherequirementsoftheforeigncustomer'spurchaseorderbeforeactuallyreceivingtheactualletterofcreditfromtheopeningorissuingbank.Unlesstheexporterhashadgoodorexcellentpriorexperiencewiththeforeigncustomeranditsissuingbank,theexporterrunstheriskofhavingthegoodsreadyforshipment,withoutreceivingtheoriginalletterofcredit.Theexporterrunsariskbecauseitmayormaynotbeabletocomplywithcertaintermsandconditionscontainedintheactualoriginalletterofcredit.Itisalwaysconceivablenewconditionsmightbeaddedtothecreditinstrument.OrthegoodsmightbeshippedandarrivedattheoverseasportofdestinationwithoutanyoriginaldocumentsbecausetheoriginalL/Carriveslate.Thus,theforeigncustomerwillbeunabletocleargoodsthroughcustoms,andthegoodswillbestoredinacustomswarehousetoaccrueexpensivedemurragecharges.TheanswertotheabovementionedproblemistohavetheopeningbankissuetheletterofcreditviatestedtelexorSWIFTtotheadvisingornegotiatingbankasthe"originaloperativeinstrument"whichcanbepresentedforpaymentbythebeneficiary.Theexportermustmakesurethenegotiatingorconfirmingbank,usuallytheadvisingbank,iswillingtoaccepttheaforementionedastheoriginaloperativeinstrument.Sometimesadvising,negotiating,andevenconfirmingbankswhopayonbehalfofissuingbanksstillwanttowaitfortheoriginalwrittenletterofcredittobereceivedbythemviamail.Thismightindicateafinancialproblemwiththeissuingbankorsomesortoftechnicalproblemsbetweenthebanksw