1.Usually the low interest rate currency trades at a ______ to the high interest rate currency in the forward market。
, } g* B4 V" a) G5 B* ]( a2 k A.premium
/ I3 B; y0 m' c! `" t! @ B.par
. N8 e0 I5 H; _8 E C.discount
, [7 z ~2 E' G2 a* T: E* x D.bar6 P. D. q( ^5 f/ n! d' x
2.Which of the following statements about standby letters of credit is true? ______。
% S$ |) q" N t8 o A.They can serve as a guarantee to a buyer against a seller defaulting
/ x6 P9 a' A0 V# v6 @ B.They are contrary to the general rule that letters of credit may only be used for the actual movement of goods- Z! I! O. T. {' e: e
C.They are unlike a tender (or other) bond in their legal standing and method of operation- ~$ B( Y6 s5 A2 y7 a2 Q9 }* V
D.They are unlike a tender bond with its fixed expiry date
, C% R& X% H; [( b' J 3.The most liquid of all assets is ______。5 a# z, g" X5 z [0 a9 B
A.the stock of commercial banks/ @$ g9 l. Y# V( K( f# R
B.M 1
0 j% Q- P/ b0 { C.intelligence6 f/ Y( V& p5 |; O
D.the debt of major corporations- F9 C3 c; {; X- `
4.Beta and standard deviation differ as risk measures in that beta measures ______。
$ A& Q4 w. I7 k7 y A.only unsystematic risk, while standard deviation measures total risk
' Z4 Z7 R' a, Z5 R* p- T4 v: v B.only systematic risk, while standard deviation measures total risk! u( S8 |% |$ \) @ s! G2 I
C.both systematic and unsystematic risk, while standard deviation measures only unsystematic risk
7 |7 X0 b1 f P) `0 i D.both systematic and unsystematic risk, while standard deviation measures only systematic risk6 z j$ @$ ^, u( }' Q
5.What information would you find in a statement of cash flows that you would not be able to get from the other two primary financial statements? ______。, s6 [, A6 v0 F( S' h
A.Cash provided by or used in financing activities% J; N3 _# D4 v2 j/ w
B.Cash balance at the end of the period
& A/ H9 K$ n& u0 @ C.Total liabilities due to creditors at the end of the period
2 k$ h+ o7 r4 r4 [: S# v D.Net income
( Y$ p, N$ [1 O) C; a" H9 p/ F 6.An analyst estimates that a stock has the following probabilities of return depending on the state of the economy:9 V: O" T/ X- {
State of economy Probability Return. T" F v' V, ?& t4 W
Good 0.1 15%. g) H* ~ n: P3 p
Normal 0.6 13%. ~2 Z! R8 {8 t" {, F- q
Poor 0.3 7%
y: S6 {2 }) W7 ` The expected return of the stock is ______。1 M& _: U2 i8 U6 P+ u
A.7.8% C.11.7%3 F, C6 J+ V0 V8 c1 I2 r
D.13.0%. d7 J8 C. Z8 s
B.11.4%
7 }5 _- D4 |: c# O! n- D 7.According to the rules of debit and credit for balance sheet accounts ______。
* [# x/ Q% w8 Z' m A.increases in asset, liability, and owner's equity accounts are recorded by debits3 Y; }+ K) J( f
B.decreases in asset and liability accounts are recorded by credits
7 ~ q8 h+ M( ]( H! O& O8 a8 T C.increases in asset and owner's equity accounts are recorded by debits
4 | g; O' z8 |9 @ D.decreases in liability and owner's equity accounts are recorded by debits 2658 P* k6 t: J0 G9 g8 J
8.Individuals will accept the medium of exchange in return for goods and services only if they are confident that ______。) X% |; }7 b6 V; x7 ]: S! Q- C% E( n+ \6 h w
A.the inflation rate is zero$ ^. T: f$ }1 A
B.it possesses intrinsic value. g& y% `' e! T& L+ D$ j0 @
C.they can pass it on to others
8 a( @5 D A) F! g4 G( V1 b% ] D.they can exchange it for gold* e0 ^- g! \3 U& r3 L9 u. f7 f
9.When a country's currency appreciates, the country's goods abroad become ______ and foreign goods in that country become ______。
) ]9 r* A! d& `% P { A.cheaper...more expensive
Z- Y7 Y9 a. ]! C3 ?0 q B.more expensive...cheaper
' z" I9 u6 a$ a C.cheaper...cheaper' e5 d( g$ s) s; A
D.more expensive...more expensive( t; J9 h, ^5 T/ `7 {# b
10.A US company is bidding for a contract in China.Its Chinese customer asks for a performance bond.What is the most likely course of action? ______。
& H/ ~8 D9 g3 k9 H A.It asks its bank to issue a tender bond which can be converted into a performance bond
0 O# l. z) |1 O7 m6 w' R B.It gives up its bid C.It consults its bank about issuing a standby letter of credit
9 O" Y N. E5 j) ~# P1 p/ O D.It asks its bank to issue a performance bond |