A. only if clearly incorporated into the contract of sale

　　B. to International shipments beyond a certain tonnage

　　C. to international shipments under the Uniform Commercial Code

　　D. to all international shipments of goods

　　41. Under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract? ______.

　　A. Import of goods priced in a foreign currency

　　B. Import of goods priced in RMB

　　C. Export of goods priced in RMB

　　D. Export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract

　　42. Incoterms address ______.

　　A. the risks of loss between the parties

　　B. breaches of contract

　　C. ownership rights

　　D. type of ship used

　　43. Which of the following is or was an example of representative full-bodied money? ______.

　　A. Debt money

　　B. ATS account

　　C. Gold certificate

　　D. Demand deposit

　　44. Risks associated with investing in foreign countries are the following except ______.

　　A. voting risk

　　B. exchange rate risk

　　C. country risk

　　D. political risk

　　45. An exporter sells goods to a customer abroad on FOB and on CIF term. Who is responsible for the freight charges in each? ______.

　　A. Exporter; Exporter

　　B. Exporter; Importer

　　C. Importer; Importer

　　D. Importer; Exporter

　　46. Default risk refers to the possibility that a borrower may ______.

　　A. be unable to repay the principal on his loan

　　B. be unable to make the interest payments on his loan

　　C. go bankrupt

　　D. all of the above

　　47. What is the reserve requirement? ______.

　　A. The requirement of a bank to deposit a percentage of money

　　B. The requirement for deposits in cash

　　C. The percentage of a bank's deposits in the form of cash reserves

　　D. The requirement for cash reserves

　　48. A draft is like a check that can be endorsed but it isn't a title to goods, like ______.

　　A. a bill of lading

　　B. an inspection certificate

　　C. a certificate of origin

　　D. an insurance certificate

　　49. Arbitrage ______.

　　A. is a general economic term for buying something where it is cheap and selling it where it is dear

　　B. keeps exchange rates consistent across markets

　　C. has been outlawed by the International Monetary Fund

　　D. cannot occur where there is a forward exchange market

　　E. both A and B

　　50. What is the purpose of comparing the ledger entries with the documents? ______.

　　A. To prove that all the transactions have made for the right amounts

　　B. To prove that all the accounts have been posted correctly

　　C. To check the number of all the debits and credits

　　D. To post the right accounts

　　51. What is Dollar Cost Averaging? ______.

　　A. A brokerage account that gives investors cheap trades

　　B. The idea that prices tend to rise over the long term

　　C. Buying stocks that are below average in value

　　D. A flat quarterly mutual fund fee averaged throughout the year

　　E. A strategy of investing money on a regular basis to take advantage of market fluctuations

　　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 ______.

　　A. a vostro account…… a nostro account

　　B. a vostro account…a mirror account

　　C. a mirror account…a nostro account

　　D. a nostro account…… a vostro account

　　53. Under FOB terms the bill of lading would state goods ______.

　　A. loaded on board, freight payable at destination

　　B. loaded on board, freight paid

　　C. received for shipment, freight paid

　　D. received for shipment, freight payable at destination

　　54. The liabilities of the bank as shown in its balance sheet represent the ______ which it uses in its business.

　　A. sources of the funds

　　B. share capital

　　C. investments

　　D. advances to customers

　　55. International payments and other messages are often sent through an international computer network called ______.

　　A. CHAPS

　　B. BACS

　　C. SWIFT

　　D. EIMT

　　56. Low levels of uncertainty (risk) are associated with .

　　A. stocks

　　B. stock options

　　C. higher potential returns

　　D. lower potential returns

　　57. Government securities would appear on a commercial bank's balance sheet as ______.

　　A. an asset

　　B. reserves

　　C. part of net worth

　　D. a liability

　　58. A major problem with a fixed exchange rate system is that when countries run foreign trade deficits, ______.

　　A. there is no self-correcting mechanism

　　B. currency values become unstable

　　C. the value of the reserve currency declines

　　D. world inflation increases

　　59. In a particular economy banks are required to keep 25 percent of all deposits in the form of reserves; this gives a credit-creation multiplier of ______.

　　A. four

　　B. three

　　C. two

　　D. five

　　60. Regulation of the money supply and financial markets is referred to as ______.

　　A. fiscal policy

　　B. income policy

　　C. monetary policy

　　D. budgetary policy

　　61. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .

　　A. imports automatically increase

　　B. currency automatically depreciates

　　C. exports automatically decline

　　D. currency automatically appreciates

　　62. Which of the following statements is not true of accounting? ______.

　　A. Accounting is language of business

　　B. The user of accounting includes business, government, nonprofit organizations and individuals.

　　C. Accounting is useful for decision making

　　D. Accounting is an end rather than a means to an end

　　63. The term foreign exchange is best defined by the following statement: it is ______.

　　A. the rate of exchange between two currencies

　　B. synonymous with currency exchange

　　C. the place in which foreign currencies are exchanged

　　D. an instrument such as paper currency, note, and check used to make payments between countries

　　64. What is Asset Allocation? ______.

　　A. Buying assets of different types, risks, and potential returns

　　B. Buying assets with more than one brokerage account

　　C. The ability to buy mutual funds

　　D. Buying stocks for the long term

　　65. External users of financial accounting information include all of the following except .

　　A. suppliers

　　B. line managers

　　C. general public

　　D. creditors

　　66. CAPM is short for .

　　A. Capital Asset Pricing Model

　　B. Cash Added Price Matrix

　　C. Capital Asset Pricing Matrix

　　D. Cost and Price Model

　　67. Liquidity measures the ______.

　　A. value of an asset

　　B. ease with which an asset can be exchanged

　　C. usefulness of an asset

　　D. economic and monetary reliability of an asset compared with other assets

　　68. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.

　　A. documents…… the credit

　　B. merchandise…… the contract

　　C. documents…… the contract

　　D. merchandise……the buyer ordered

    69. A barter economy is one that does not possess _______.

　　A. any wealth B. printed currency

　　C. a medium of exchange D. gold

　　70. Which of the following is not true of airway bill? ______.

　　A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goods

　　B. Airway bill is a document of title to the goods

　　C. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flight

　　D. None of the above

　　71. The value of money varies _____.

　　A. directly with the unemployment rate

　　B. directly with the price level

　　C. inversely with the unemployment

　　D. inversely with the price level

　　72. The economics news on the television reports that the dollar has strengthened relative to the Japanese yen. This means that ______.

　　A. the dollar has depreciated relative to the yen

　　B. the dollar can now purchase more yen

　　C. the yen can now purchase more dollars

　　D. the US trade balance with the Japanese economy has improved

　　73. The theory of international exchange that holds that exchange rates are set so that the price of similar goods in different countries is the same is the ______.

　　A. price feedback theory

　　B. trade feedback theory

　　C. purchasing power parity theory

　　D. J-curve theory

　　74. According to the optimal portfolio theory, where should portfolios lie? ______.

　　A. On the efficient frontier

　　B. Above the efficient frontier

　　C. Under the efficient frontier

　　D. Anywhere, as long as the portfolio is diversified

　　75. Which of the following is not a user of management accounting information? ______.

　　A. Store manager

　　B. Creditor

　　C. CEO

　　D. CFO

　　76. Based on the scenarios below, what is the expected return for a portfolio with the following return profile? ______.

Market Condition

	bear	Normal	Bull
Probability	02	0.3	05
Rate of return	—25%	10%	24%

   A. 4%

	Bear Market	Normal Market	Bull Market
Probability	0.2	0.5	0.3
Stock X_	-20%	18%	50%
Stock Y	-15%	20%	10%

　　77. Financial markets serve to channel funds from ______.

　　A. the government to contractors

　　B. investors to consumers

　　C. consumers to producers

　　D. savers to investors

　　78. The agreements that were reached at the Bretton Woods conference in 1944 established a system .

　　A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed-upon value of its currency

　　B. of floating exchange rates determined by the supply and demand of one nation's currency relative to the currency of other nations

　　C. that prohibited governments from intervening in the foreign exchange markets

　　D. in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading

　　79. Which of the following statements is not consistent with generally accepted accounting principles relating to asset valuation? .

　　A. Assets are originally recorded in accounting records at their cost to the business entity

　　B. Accountants prefer to base the valuation of assets upon objective, verifiable evidence rather than upon appraisals or personal opinion

　　C. Accountants assume that assets such as office supplies, land and buildings will be used in business operations rather than sold at current market prices

　　D. Subtracting total liabilities from total assets indicates what the owner's equity in the business is worth under current market conditions

　　80. A fiscal expansion in the UK ______ the pound sterling.

　　A. tends to appreciate

　　B. tends to depreciate

　　C. does not affect the price of

　　D. has no predictable effect on the price of

　　81. What are the expected returns for Stocks X and Y respectively? ______.

　　A. 20% and 10%

　　B. 18% and 12%

　　C. 20% and 11%

　　D. 18% and 5%