11. Which of the following statements is not true of central banks? ______.
2 V! }; c. H. k: `; MA. They pay the government‘s salaries
5 v: k* P, u# t3 X1 y: _. d1 f0 zB. They always undertake the regulation of the banking system ) u# {3 M6 U$ u
C. They are always the lender of last resort
( v+ r( g, S6 TD. None of the above
- ^9 ^# d4 n, d+ b7 f. q+ q3 b12. When GBP/USD rate goes from 1.6150 to 1.8500, we say the dollar ______.8 e9 ]; y6 Q, |! s0 Y
A. appreciates by 12.70%
/ O2 a- ]" L2 }4 C$ d' b4 B& ?6 ~B. depreciates by 14.55%
5 S3 o( r, P g' `3 UC. depreciates by 12.70% 3 }& G4 I) T% `4 o* r
D. appreciates by 14.55% & n& }0 T7 u c4 c/ l R* N
13. According to diversification principle in investment, suppose you invest Stock X and Stock Y with equal funds, which of the following is not true? ______.* z$ V$ x- n! f2 Z. m" E y
A. If X and Y are totally independent with each other, the risk of the portfolio is reduced
8 ]$ Z6 e. N* p/ A+ X: u6 jB. If X and Y are perfectly negatively correlated, the risk of the portfolio is perfectly offset7 S' B% @! A' k( q6 W
C. If X and Y are perfectly positively correlated, the risk of the portfolio is neither reduced nor increased
7 i q9 B! W& {' D0 X) f. ]; \D. If X and Y are perfectly negatively correlated, the risk of the portfolio is neither reduced nor increased
1 v9 S% H3 u6 e/ d14. The main liability on a bank balance sheet is ______.
6 Y8 C; w# a" e" I* R/ k/ C2 VA. deposits , H* ~) K& r6 V9 C, S
B. capital and reserves
& S' g3 E8 M* y; RC. loans and overdrafts ; A# X1 S$ X9 d! C c$ w- o( a
D. cash # \, b" U0 a) W
15. ______ shows that net income for a specified period of time and how it was calculated.
( G( V7 Z& R6 e3 R! E- x K1 VA. The income statement 1 R5 i* h) [3 |! i& M, i* c
B. The capital statement( j/ i5 E! s& ^6 V g
C. The accounting statement
. N9 T9 d! o/ Z3 {; oD. The statement of financial condition |