40. Incoterms apply ______.
7 Y9 h t8 X# g4 @ A. only if clearly incorporated into the contract of sale. T+ T) `7 a3 {3 U$ w# d
B. to International shipments beyond a certain tonnage1 p+ H, Q( _8 h
C. to international shipments under the Uniform Commercial Code3 u0 p: d q" w7 [
D. to all international shipments of goods/ y; o7 ]: m' X- P8 ~# b
41. Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract? ______.1 }0 O$ O& V/ ~" A8 J5 s2 d- H
A. Import of goods priced in a foreign currency0 ]3 B; T9 Z- A: v" y) I
B. Import of goods priced in RMB
! u0 G$ G# x. y C. Export of goods priced in RMB' w/ R# c% G R/ K0 [! L# b
D. Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract
9 a8 x9 ~8 w$ S+ w. u 42. Incoterms address ______.4 e5 h, f5 Z' c2 s) T+ L
A. the risks of loss between the parties
& A+ P1 a' `0 f6 v" h( ^6 \9 f B. breaches of contract) C) p8 v7 Z" ^0 q, w2 C
C. ownership rights8 e8 p# u" ?) e) \* [, C+ O
D. type of ship used) J E& C- B) z8 [
43. Which of the following is or was an example of representative full-bodied money? ______.
M' s( [; O# ]. d" _ A. Debt money
- V0 o5 o S: s ] B. ATS account
# Z' V: i; W7 ]# u7 l C. Gold certificate
) I: o- U9 k# P! ?9 Y D. Demand deposit' {7 O: `1 J: A+ G* V& _5 P" I
44. Risks associated with investing in foreign countries are the following except ______.* e! v1 ?4 Q1 p- e/ ^
A. voting risk2 M' |% `* v) O& Y
B. exchange rate risk" `2 F, X' J: ]; n$ ^- Y2 w, `" v: V
C. country risk, q1 t) `: g0 u* T/ \0 y' v
D. political risk- N/ O" T2 l. a @6 i& B- B6 l; N$ ?: q
45. An exporter sells goods to a customer abroad on FOB and on CIF term. Who is responsible for the freight charges in each? ______.
2 e* R2 B8 S, ?4 J* \0 q2 A2 }- m- d A. Exporter; Exporter
- c: R& h- K3 q4 R B. Exporter; Importer
1 a; k5 w; r* H C. Importer; Importer+ w6 F' _0 D" X- c0 v" Z+ j! P
D. Importer; Exporter
6 m5 v5 B- R1 x; t! R 46. Default risk refers to the possibility that a borrower may ______.
- c/ w- A; B! j% C% g A. be unable to repay the principal on his loan: z5 `5 ^ e! [9 k
B. be unable to make the interest payments on his loan
" C* ^! a" J+ x0 \. z C. go bankrupt
$ D& i" ^3 R: T) ~ D. all of the above3 R1 d) ]% ?3 I& A
47. What is the reserve requirement? ______.
& m0 O/ j0 ]4 u5 J6 c |, q0 A2 y A. The requirement of a bank to deposit a percentage of money' k, q3 u9 l2 A5 @# z( O( d
B. The requirement for deposits in cash" Q. R7 `. M" q; e
C. The percentage of a bank‘s deposits in the form of cash reserves7 y( a( A8 C, \7 h, D
D. The requirement for cash reserves; w+ ?* X5 a7 D6 t
48. A draft is like a check that can be endorsed but it isn‘t a title to goods, like ______.- q6 d4 _9 L6 D E2 `
A. a bill of lading# s4 t) Q, N, c4 V% x! H$ \) _
B. an inspection certificate! ]2 z4 y& A7 |5 Q
C. a certificate of origin
) I7 F: T8 A* I, |' x D. an insurance certificate# j2 _/ W% l9 G& I, I) \2 J( W
49. Arbitrage ______.& {0 X# k" D3 `. ]1 ~: {
A. is a general economic term for buying something where it is cheap and selling it where it is dear
% c9 w/ x- B1 k. I B. keeps exchange rates consistent across markets# G2 ~8 Y5 E4 E3 L/ e: [" h
C. has been outlawed by the International Monetary Fund
9 j) `0 n% h4 I D. cannot occur where there is a forward exchange market
1 P2 N; r+ F+ M+ B E. both A and B$ K7 F- i( r( {- A: A
50. What is the purpose of comparing the ledger entries with the documents? ______.5 D9 }1 Y7 Y( i, F; T! j& u4 ?3 I
A. To prove that all the transactions have made for the right amounts3 g4 e1 J6 g! a# B
B. To prove that all the accounts have been posted correctly) M" g" U5 L6 q ~1 Q) p" |
C. To check the number of all the debits and credits- b8 g# A$ L: _, g8 I: q$ m0 t
D. To post the right accounts5 V( l( x" |6 T+ y+ j
51. What is Dollar Cost Averaging? ______.
, v6 R/ g( E; D! M) A. K9 B+ q+ q A. A brokerage account that gives investors cheap trades
% U& l3 o1 \ E$ j5 [ B. The idea that prices tend to rise over the long term% _& b Z) K6 Q6 w" { g6 A) R
C. Buying stocks that are below average in value
8 ~4 r$ j7 M; P+ f z! ]3 m D. A flat quarterly mutual fund fee averaged throughout the year
/ E& J3 T3 a/ y% b0 z ^" k6 { E. A strategy of investing money on a r
. X) j% Y3 u4 h5 y egular basis to take advantage of market fluctuations
& x4 J6 Q' ~; l" u# Z5 F) Y 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 ______.: y2 X9 _+ g: b6 ]' z" ]% _
A. a vostro account…… a nostro account
+ G, f: u2 {7 Z% _" m w! [' W B. a vostro account…a mirror account* y0 x. o! b/ ^3 `- ~8 F2 I
C. a mirror account…a nostro account, F9 T. v" x2 K2 ~
D. a nostro account…… a vostro account# ?) S) h ^2 ~& `. o( A
53. Under FOB terms the bill of lading would state goods ______./ s+ N- v8 a! }& ]
A. loaded on board, freight payable at destination
7 l% i4 ?9 u6 j6 C! v B. loaded on board, freight paid
0 N% A, K( G8 I! ~( J: V C. received for shipment, freight paid; q* R( }/ v& s3 C4 o# H* A
D. received for shipment, freight payable at destination- u1 _2 K1 s+ G
54. The liabilities of the bank as shown in its balance sheet represent the ______ which it uses in its business.
( b1 X! y& [# n# A. \0 l m% ] A. sources of the funds
& N: d7 e5 J" e/ j' V% J B. share capital
2 B) K6 P# I4 Z C. investments: F; t& h8 E/ i2 N( o; g9 i. ?; I1 h
D. advances to customers
% C! k0 `# u" {6 E" T7 C 55. International payments and other messages are often sent through an international computer network called ______. |