40. Incoterms apply ______.
" p1 {# _* p6 c. b0 { A. only if clearly incorporated into the contract of sale1 N- \2 f& d! o
B. to International shipments beyond a certain tonnage
, b9 C B7 ~2 U5 Q% m6 D C. to international shipments under the Uniform Commercial Code
# m7 z' g- a/ D8 l6 _- F D. to all international shipments of goods
8 y$ X$ ?* }# [9 k 41. Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract? ______.( N- q$ f1 F- _8 E8 p3 c
A. Import of goods priced in a foreign currency
8 a( h: x, J7 W: r& \! Z. x, m7 S5 z9 n* }8 j B. Import of goods priced in RMB* \ E' h0 l: W7 ` c
C. Export of goods priced in RMB, M* h% E4 q) ?: S0 ^, S
D. Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract; A. \* }( [0 s1 p- l
42. Incoterms address ______.0 \2 m" S/ k+ }) p0 L
A. the risks of loss between the parties
: E! ]* w: n* f; ]2 g' c B. breaches of contract; @0 Z5 _! x* Q: X* w# Q
C. ownership rights& T( ]3 F& d: R
D. type of ship used+ r* F% @4 n- m* Z* K; D" E' H$ U
43. Which of the following is or was an example of representative full-bodied money? ______.3 i* B0 g9 X( o6 ?
A. Debt money! p( S0 f1 Q& D: c/ w; w8 j2 R8 ~* y* [
B. ATS account
# H" A" f& V$ a1 F C. Gold certificate. |) d' Q1 f2 e
D. Demand deposit8 O; n+ s* N1 e7 m4 G
44. Risks associated with investing in foreign countries are the following except ______.
& X- b2 J* J. b1 b A. voting risk
; I' @* N/ M. U4 L* Z$ o# X& e% u B. exchange rate risk
4 [2 a: c' G- V9 u3 @$ O U/ m C. country risk0 V" G. I) Y, H% N7 F
D. political risk
/ i v% b6 T5 B. i( M 45. An exporter sells goods to a customer abroad on FOB and on CIF term. Who is responsible for the freight charges in each? ______.7 W6 `$ w/ z( n& b0 F
A. Exporter; Exporter0 N8 m9 h# b8 `6 h( b% \
B. Exporter; Importer5 U5 p1 C) d& i4 }
C. Importer; Importer1 d" F x: x% Z# i2 h
D. Importer; Exporter: s6 B/ ^- w; V) | E
46. Default risk refers to the possibility that a borrower may ______.8 T0 V" G1 ^0 G2 l: S& r
A. be unable to repay the principal on his loan7 }8 p* X/ v9 Y* ]2 o w$ }" I* K J0 o1 y
B. be unable to make the interest payments on his loan
. b+ \. w8 {% p3 ]+ `& q* }, T C. go bankrupt% `) L( j( |- L- x: M0 q4 c- Z3 y
D. all of the above
+ D# V x& B4 d 47. What is the reserve requirement? ______.
& N" w9 r5 r& m. Z- H, E3 x* p A. The requirement of a bank to deposit a percentage of money
; I4 _& k+ t6 `" T( j B. The requirement for deposits in cash
% g" F' }" |7 \6 v" q7 O9 g0 m C. The percentage of a bank‘s deposits in the form of cash reserves; J# o' O' g# K( G; L, `
D. The requirement for cash reserves& R5 w% ?9 r+ ]! M# e3 x& {: M
48. A draft is like a check that can be endorsed but it isn‘t a title to goods, like ______.
- x8 Y7 V$ |& }- s4 E D A. a bill of lading }" T9 Y8 R9 m3 b
B. an inspection certificate5 T* |0 K( f5 l8 g, A$ f% a8 @% N
C. a certificate of origin% K, b7 E- m' G) H) ?4 K2 r
D. an insurance certificate; F) i& D7 m6 T9 U
49. Arbitrage ______.
! q" P/ P7 s# k3 O) u* M3 B7 o' i! s A. is a general economic term for buying something where it is cheap and selling it where it is dear
/ G. w1 Y+ l) f1 r/ u5 c% y2 R B. keeps exchange rates consistent across markets: C; r- V' W7 H( p# s1 W
C. has been outlawed by the International Monetary Fund
/ y) h; ~+ K' m- c# F- V* k D. cannot occur where there is a forward exchange market
4 t: A( d4 _( i& d/ i3 K3 J# \ E. both A and B0 @- k% x# [& \+ s7 \1 V
50. What is the purpose of comparing the ledger entries with the documents? ______.
9 {% D: s5 S8 J8 ] A. To prove that all the transactions have made for the right amounts8 S% x# }% Y, E- j
B. To prove that all the accounts have been posted correctly1 w3 j8 m4 m( n6 |4 ~* V2 X% O
C. To check the number of all the debits and credits' ~# c! e9 D8 _9 h3 y
D. To post the right accounts
) i* d T. C" d. a5 L 51. What is Dollar Cost Averaging? ______.
) r+ P9 g% N$ c A. A brokerage account that gives investors cheap trades/ `2 y- H# |5 ?8 ?( e; \
B. The idea that prices tend to rise over the long term
( q- O1 h' G( L C. Buying stocks that are below average in value
1 O6 C% `5 Q5 ^& K; o) l D. A flat quarterly mutual fund fee averaged throughout the year
5 {" \) T3 |: M9 E E. A strategy of investing money on a r
4 [0 Y7 M2 P9 Y- n egular basis to take advantage of market fluctuations
_8 j7 S# C, a7 I; d- e8 L* x 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 ______.5 j( U( c. K5 I ~) u
A. a vostro account…… a nostro account1 O. W* z8 r0 C: v) P9 k
B. a vostro account…a mirror account
; W4 ]5 r4 }9 v j8 ^3 O2 m7 P C. a mirror account…a nostro account3 U K# ^% f. r, Q. Q
D. a nostro account…… a vostro account
2 [% {1 z M% h) {: |! N( V 53. Under FOB terms the bill of lading would state goods ______.
$ b2 `) ?! o) ^4 ~ A. loaded on board, freight payable at destination2 c d+ l4 t* ^' H. Y
B. loaded on board, freight paid+ _( C# g7 W4 @# r% s. S; y
C. received for shipment, freight paid
! F* ^" F S2 `, o6 x D. received for shipment, freight payable at destination
0 e1 x* |4 }% x! a: E0 G! K9 }9 B 54. The liabilities of the bank as shown in its balance sheet represent the ______ which it uses in its business.. m3 c0 E/ \( D4 o" C( I D, y
A. sources of the funds
3 _% y8 w3 I) l3 } B. share capital v& s8 `7 r) f* N+ t2 I# ]
C. investments
+ ^: N% t7 o5 K1 f* p! | D. advances to customers
* \7 k+ J% s% D6 L- V2 O 55. International payments and other messages are often sent through an international computer network called ______. |