6. Default risk refers to the possibility that a borrower may ______.
4 B# C |+ e! Y* [9 k8 FA. be unable to repay the principal on his loan9 b( K7 M7 [' g5 S% d3 F
B. be unable to make the interest payments on his loan0 m: }5 v' ^8 O( f( {
C. go bankrupt; [4 `: G. Q; y: j
D. all of the above+ ]6 u* I p# m) P+ Y2 K
7. What is the reserve requirement? ______.
2 k: s- r2 K7 E* U7 C1 n ]A. The requirement of a bank to deposit a percentage of money
# g I2 A0 z) ~' e* ^5 |% kB. The requirement for deposits in cash
, H( u0 C& s+ `3 I6 DC. The percentage of a bank‘s deposits in the form of cash reserves* `3 H8 o; ?# L/ x" i
D. The requirement for cash reserves
6 Q1 N" \( I+ \6 O8. A draft is like a check that can be endorsed but it isn‘t a title to goods, like ______.
" M7 i5 A# k. v: F6 QA. a bill of lading # W. u0 X( Y7 d; E" l
B. an inspection certificate
& N' B1 o% `5 J0 `1 o3 fC. a certificate of origin 8 ]0 @/ {" N& I7 z+ c
D. an insurance certificate 6 }8 I0 w3 n8 ?( ?0 @2 v8 Z! m
9. Arbitrage ______.
$ k$ G1 |2 D9 \! D( z; Q' X6 N+ `A. is a general economic term for buying something where it is cheap and selling it where it is dear& t4 |, ?. Q4 r1 X- G/ O( z9 W
B. keeps exchange rates consistent across markets# h( I0 s* Y6 G+ @ Q
C. has been outlawed by the International Monetary Fund0 M& y' L/ h' W. A5 S! q
D. cannot occur where there is a forward exchange market, Q A s/ H6 V7 F" ]+ D# l, ~
E. both A and B
+ c6 `& e5 _" \10. What is the purpose of comparing the ledger entries with the documents? ______.
8 Q$ A+ x7 q7 h* bA. To prove that all the transactions have made for the right amounts
8 A% @: d1 s7 Y7 r, T6 q+ xB. To prove that all the accounts have been posted correctly
/ C4 f% k( j5 N/ ^3 }C. To check the number of all the debits and credits, T3 W' k$ w, B: b
D. To post the right accounts |