1. Which of the following is not a function of money? ______. A. To act as a medium of exchange6 Q- k1 g) D3 X
B. To act as a unit of account- B" f5 o4 s g7 b+ G/ J4 X* R, t
C. To act as a store of value
5 s$ z" x* D! S3 i. `- D) Q) HD. To provide a double coincidence of wants" @6 z7 H+ n/ U. [) w4 ^
E. To act as a means of payment4 A/ p, o# j- D/ L, z
2. The price in the foreign exchange market is called ______.. }/ A" J' n- x
A. the trade surplus
$ D- h$ w) f& }# q3 g$ YB. the exchange rate4 o6 _6 K5 I3 Y9 Z
C. the money price$ _0 T0 g ^4 ]. M; W, m. P* f
D. the currency rate: \7 ^% W1 e5 ]& @- S
3. Market risk refers to the risk of______.& Q9 y% [: k) J! p5 z8 t# J6 d8 `
A. financial prices fluctuations
' P2 O* @$ e1 f0 cB. default* B% p6 C! l, Y9 y1 `
C. fraud; U! ~3 c0 Y% W7 g! y
D. deferred payments5 C: D5 u. @: ]* `
4. Which of the following is not among the generally accepted accounting principles? ______.
; ^, U }% @, NA. Cash basis3 l6 F, \( a+ I2 m
B. Prudence
2 O0 r8 f& b1 G0 G6 BC. Consistency9 S, R! b/ a% i
D. Going concern
- s' l" c' i3 _$ g& I& y) ]9 pE. Money measurement.: b6 E4 _! _2 ~% l; N
5. What is a documentary letter of credit? ______.$ L) {; g9 T; H" e( k& F1 s4 u
A. A conditional bank undertaking to pay an exporter on production of stipulated documentation
$ `9 l& G' r3 OB. A method of lending against documentary security
9 a' y( x2 O* WC. An international trade settlement system biased in favour of importers7 j* p! ~2 _3 P- A
D. All of the above |