40. Incoterms apply ______.# Q) R$ B8 ~: N7 x4 i
A. only if clearly incorporated into the contract of sale
: D0 }. h- q9 z1 _ B. to International shipments beyond a certain tonnage5 E' X9 r! Z! O, s+ P, S9 N
C. to international shipments under the Uniform Commercial Code& y& e$ z; j$ M
D. to all international shipments of goods, `8 s- J% o1 V4 `: _) @
41. Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract? ______.
, \$ s" W8 V8 U2 m A. Import of goods priced in a foreign currency6 J. {# U. R q
B. Import of goods priced in RMB
# S6 m/ y& ]% B C. Export of goods priced in RMB9 C% G/ ^ e7 s( }
D. Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract
8 v1 B2 Y7 K( ^) k4 V( c; y% p 42. Incoterms address ______.7 r5 o4 c, w1 r7 H
A. the risks of loss between the parties
" e7 v6 h7 @5 k4 Z/ a B. breaches of contract
6 f" [; b8 W( b( M C. ownership rights
) G3 v9 ~6 [" K D. type of ship used
2 p7 r: @7 a6 B( m 43. Which of the following is or was an example of representative full-bodied money? ______.
, j) E9 z. X; |; o7 W9 S9 `. P8 O A. Debt money
" v) ?5 _9 w! u B. ATS account" l# f0 [, I9 x* y4 ?
C. Gold certificate. T9 R9 l* D2 e: |
D. Demand deposit2 \5 u" l* p$ |+ K' v# n. D2 M/ `
44. Risks associated with investing in foreign countries are the following except ______.( y- N& i- D: p% ^" M
A. voting risk
7 I2 }! j9 W* \ W B. exchange rate risk) M2 h9 w. k5 L$ y/ Q- d
C. country risk
( c2 X" m. m6 V. L& R) `, { D. political risk9 C& G$ d4 i2 Y8 {8 }0 c4 _
45. An exporter sells goods to a customer abroad on FOB and on CIF term. Who is responsible for the freight charges in each? ______.8 f$ O# @0 v; u
A. Exporter; Exporter0 U1 w N2 ^2 F% ~/ t2 I4 q* Z
B. Exporter; Importer: G6 g: _8 q* R+ Z [( m. [
C. Importer; Importer+ K5 F' u. y# J. d/ H
D. Importer; Exporter3 `0 C% M5 N/ u9 v* I7 R: z$ I
46. Default risk refers to the possibility that a borrower may ______.
, o V' c; ?4 K A. be unable to repay the principal on his loan
6 |$ D6 K. `' {0 q" V0 l& R6 k B. be unable to make the interest payments on his loan$ f# S2 i. c1 R# Y% b7 O) F5 G
C. go bankrupt
) W2 f/ }) w, E) l) E D. all of the above n5 R& o1 F3 ^. N/ [7 }" }# h x
47. What is the reserve requirement? ______.
8 i+ l, u6 A& {" ^6 R- W8 p A. The requirement of a bank to deposit a percentage of money5 k2 a/ R( ^5 t
B. The requirement for deposits in cash8 R( _6 _& s- E& V9 L0 s. B3 R
C. The percentage of a bank‘s deposits in the form of cash reserves
! i1 U& l& m( E5 j D. The requirement for cash reserves" `8 z/ m" }4 a' E# U8 K' W; @
48. A draft is like a check that can be endorsed but it isn‘t a title to goods, like ______.
/ |1 a O; T# a' G+ [ A. a bill of lading
/ f9 y/ E7 f( U; I h& ~/ {3 E B. an inspection certificate; j9 y9 F( B6 F I
C. a certificate of origin
0 H) @- \3 F; v, r: h& n D. an insurance certificate
$ D$ D/ Q' t( `2 T' d. O0 W7 H 49. Arbitrage ______.
8 e- d$ h3 ]9 M ~4 Z A. is a general economic term for buying something where it is cheap and selling it where it is dear
* s' t J$ \0 I2 P( v B. keeps exchange rates consistent across markets
' [3 Y" N" C' n- f4 n C. has been outlawed by the International Monetary Fund( t/ z! }; Z- M5 f
D. cannot occur where there is a forward exchange market
9 R; X* a+ V6 P; } E. both A and B
; x' L& W! r7 ?2 {3 ~+ F" c 50. What is the purpose of comparing the ledger entries with the documents? ______.( b- O/ t8 n" U8 E" T; z' d; N
A. To prove that all the transactions have made for the right amounts
& D4 T# U7 V/ l, v u( c# c3 Z$ B B. To prove that all the accounts have been posted correctly
; {- w* U! i, Y C. To check the number of all the debits and credits
: |( e8 C6 R2 @; d D. To post the right accounts( H8 [& I: e1 X; L- E
51. What is Dollar Cost Averaging? ______.
( f: z, X" ]4 R# p A. A brokerage account that gives investors cheap trades
6 D! F0 Q# C# H) U( K6 m- Q$ c B. The idea that prices tend to rise over the long term$ S$ i- o; h8 o7 w2 k% g8 w
C. Buying stocks that are below average in value
7 ]8 Y* A, I( E D. A flat quarterly mutual fund fee averaged throughout the year# U8 u9 \5 D' ?5 p. ^
E. A strategy of investing money on a r
g8 _/ Z6 k7 H egular basis to take advantage of market fluctuations t$ q4 g5 P' w5 @, y [% m
52. 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 ______.
% E% C" v4 k+ L) k! x A. a vostro account…… a nostro account n3 r" P" n$ n
B. a vostro account…a mirror account/ r9 r1 b# J+ @' ?/ G" g A
C. a mirror account…a nostro account
" [! p3 D6 i+ l; Z$ R D. a nostro account…… a vostro account
: N+ F4 l& h+ _5 n, A: ` 53. Under FOB terms the bill of lading would state goods ______.
/ @7 Y( v6 Y$ ^ A. loaded on board, freight payable at destination
4 |5 H! C' u7 I4 @! L5 J B. loaded on board, freight paid
: ]# z+ ~7 ^& }: }. C C. received for shipment, freight paid
( t; M. U, j# C3 l1 G D. received for shipment, freight payable at destination! b3 X5 L. i4 ` n. M( j# M
54. The liabilities of the bank as shown in its balance sheet represent the ______ which it uses in its business.& O4 c2 ~: k8 M! W
A. sources of the funds
2 ]6 P" n' f; n+ \+ U# {, B B. share capital
- ]2 R( Q/ M2 \8 W4 | C. investments
. _; a& v9 [" {! }- z) F. V D. advances to customers* w6 o7 x ^4 j6 W) A
55. International payments and other messages are often sent through an international computer network called ______. |