1. Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract? ______.! [8 Y0 B. s6 S6 ?- T- F4 S2 l
A. Import of goods priced in a foreign currency7 k2 X" t: Z* q: x, Z3 {
B. Import of goods priced in RMB- d) l. s6 P# h% x2 r
C. Export of goods priced in RMB
" X: J8 X8 P6 a8 X0 ~: t% L* S5 a D. Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract& ?0 a7 ?( b" t; w- N
2. Incoterms address ______.3 Y9 j3 K8 x" f0 e
A. the risks of loss between the parties
5 V6 I: l5 b" H) S4 |- ^ B. breaches of contract
9 A' t. Y+ a& H! p- g3 Z C. ownership rights
. t4 Z: L( o' V5 p7 H/ D D. type of ship used2 H# E; @' R8 L& r. ` @
3. Which of the following is or was an example of representative full-bodied money? ______.% A" A0 m' b4 u/ T. J; I$ |* t: K
A. Debt money
% n; a* W! V3 [* K" k B. ATS account/ o$ g' N+ Y! f. h3 K
C. Gold certificate3 `; i# ]8 E4 }2 `1 j% @
D. Demand deposit
- `8 h; s$ |- p4 I 4. Risks associated with investing in foreign countries are the following except ______.
3 Y+ E/ t: N% h" {3 A A. voting risk
9 @% c+ ?* ~1 T7 ?# R' G# `" K B. exchange rate risk+ L1 \4 I# y2 e$ X) [5 R
C. country risk
0 w j! Q7 i! {% H D. political risk0 Y4 @% l, h( z8 m
5. An exporter sells goods to a customer abroad on FOB and on CIF term. Who is responsible for the freight charges in each? ______.; k( P* ], h4 d4 p" D1 i& ~0 s3 O3 C* l% {
A. Exporter; Exporter/ ^- a4 Y) }# l2 n2 m3 }0 k& y! w
B. Exporter; Importer
& A) {2 `8 `8 U$ R% w C. Importer; Importer
$ Z' t& D$ \1 J% \% } D. Importer; Exporter
* h1 I7 k& I3 K6 O- d# e/ W 6. Default risk refers to the possibility that a borrower may ______.6 G* l1 N. @( o8 _
A. be unable to repay the principal on his loan
. e5 H0 z! Z+ N( |! s B. be unable to make the interest payments on his loan
* f& m# t: K) T. N C. go bankrupt4 Q6 O1 ]; {) s+ Z
D. all of the above
2 r5 [+ C6 \5 l7 k5 R- {5 F. e 7. What is the reserve requirement? ______.; Q# I( H$ T7 H. S& o
A. The requirement of a bank to deposit a percentage of money2 M+ B8 c# i# V4 ^- Y+ J
B. The requirement for deposits in cash' G, M4 x1 d5 {/ K2 d( [$ s1 j
C. The percentage of a bank's deposits in the form of cash reserves
/ f- z! t* _/ Q( u D. The requirement for cash reserves9 ]! O8 y: K5 M2 v4 A% T
8. A draft is like a check that can be endorsed but it isn't a title to goods, like ______.1 _' E, \5 L7 ]' ~# S
A. a bill of lading
6 h) y$ u% Y6 u. Y6 y2 H9 I B. an inspection certificate
' m$ x% j) }# U2 E6 {7 S C. a certificate of origin: \3 |, t6 y9 \; g
D. an insurance certificate0 n3 Z( t2 P U$ h, A! n/ [
9. Arbitrage ______.+ O0 r! z* p% A+ r' Y
A. is a general economic term for buying something where it is cheap and selling it where it is dear/ S3 ^& V, Q4 Y) u1 M
B. keeps exchange rates consistent across markets( ]# u! L1 L5 T2 _5 n
C. has been outlawed by the International Monetary Fund* N; t! _; K) o" E# S4 _& C. V
D. cannot occur where there is a forward exchange market5 d+ b# N) _2 a8 n% Z" ~
E. both A and B: y( A" N0 c& x/ ], Q8 M
10. What is the purpose of comparing the ledger entries with the documents? ______.& m) b5 t3 F; b: w, E
A. To prove that all the transactions have made for the right amounts5 h9 r, Y3 v1 E$ E
B. To prove that all the accounts have been posted correctly) w7 X, v" J7 C6 f, j
C. To check the number of all the debits and credits4 C I" [) i/ m$ f- g
D. To post the right accounts |