金融英语单选题—FECT（8）

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II. True or False Questions
26. As a general rule， the shorter the maturity of an asset and the more readily it can be sold， the more liquid is the asset.
4 d) c& F, e' v! g; O! w* v* Z2 rA.True B.False

27. Investors in the capital markets are not subject to any tax on their investments.
3 E, k0 L/ D) J# ~A.True B.False

28. CMO is a security backed by a pool of pass－through rates， structured so that there are several classes of bondholders with varying maturities， called tranches.
' [! ~  z$ t) vA.True B.False

29. The purpose of the letter of credit is to facilitate trade， typically international trade by substituting the known credit worthiness of a bank for the buyer， which may be unknown or unacceptable to the seller.
, t  d7 Z/ l( k5 NA.True B.False
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& X/ C. C* d9 A# P, T% q. u30. According to the Phillips Curve， the economy cannot be at full employment and stable prices at the same time.
3 ]' S6 C' f) x: u* X3 WA.True B.False

% f8 b  n# y- D. \+ ^31. When total reserves are equal to required reserves， the banking system cannot extend loans anymore.
A.True B.False
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32. A bill of lading that covers the shipment of goods on two separate vessels is known as thorough bill of lading.
, ]- p4 q# z. uA.True B.False
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: b2 J$ @- \- ?; v* `33. Usually the more liquid asset is less risky.
* S' B% g0 m7 L" l0 B' ]& K) XA.True B.False

34. Where the bill of exchange is not accompanied by documents， these having been sent to the importer， the transaction is known as a clean collection.
# F( R0 T1 h  @& a1 W& MA.True B.False
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) D+ w1 Z' n0 `( l: `35. The velocity of money is the speed with which it can be converted into a liquid asset.
( y* ^5 c: S+ L" N$ J: iA.True B.False
36. Primitive securities yield returns that depend on additional factors pertaining to the prices of other assets， while a derivative security offers returns based only on the status of the issuer.
' _5 I7 L1 W% u! l( kA.True B.False

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37. A car loan offered by a bank is a derivative security.
, K  t5 n* p* ^3 o- ~A.True B.False

38. Options give buyers the obligation to buy or sell an asset at a present price over a specific period.
" l% }5 i+ J  V" A9 H- y. fA.True B.False

  P/ c' }1 q2 W39. Futures contracts usually end in the delivery of the underlying commodity.
6 P% a8 s1 i# ^7 h4 p  eA.True B.False
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; W: T9 L" Z% a% N' l; h) E40. The forward exchange rate is the current spot rate adjusted for the interest rate differentials.
A.True B.False
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41. Dirty price is the bond price excluding accrued interest， i.e.， the price paid by the bond buyer.
5 r1 B% k3 K) t$ x( ~A.True B.False

42. Every transaction must produce a debit and credit entry of the same financial amount.
) q% d. b& M4 D; i4 t( zA.True B.False

43. There are three parties to a life policy in addition to the issuing company： the insurer， the life assured and the beneficiary.
A.True B.False
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44. A guarantee is an agreement that may be evidenced in writing or in oral form.
A.True B.False

$ {$ o1 p8 d1 G5 R; L2 \" Y45. An insurable interest is assumed where people take life assurance on their own lives or where the relationship is that of husband and wife.
* P3 g% A$ \9 a' zA.True B.False

& O% z. x3 T" x46. Profit does not equal cash and some profitable businesses have failed for want of cash.
" o  {, p* E4 GA.True B.False
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47. Bills are negotiated with recourse to customers in the event of nonpayment.
+ F9 _# e7 e+ X5 n% x4 t4 [A.True B.False
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% l, x* @" |* V  e( r  Z& _& T48. A firm‘s gearing is the level of fixed assets as a percentage of total assets.
A.True B.False

3 r! `* [$ b% F' {: q49. A bank must obtain a judgment if it wishes to pursue its legal remedies against a debtor.
A.True B.False

! x2 t. ~5 M9 s2 L$ m& i7 a) W50. When a country borrows from abroad， its balance of international payments shows an outflow of foreign exchange.
2 f  }8 u0 {7 J2 }0 q3 N) rA.True B.False