D. permit the exchange of payments between banks
37. How can you prove that no transactions are missing or wrong at the end of the day? ______.
A. There is no other way than have these transactions reposted to the proper entries
B. We can examine all the transactions carefully and find the wrong records C. We can balance the total debits and the total credits by calculating them again D. We can do that by checking the total debits and the total credits to see whether they are in state of balance
38. Money _____.
A. serves as the critical function of a medium of exchange B. facilitates trade in goods and services
C. overcomes the inefficiencies of barter D. all of the above
39. If dealers buy currency forward but do not sell forward at the same time, their position is known as . A. short
B. forerunner C. speculation D. long
40.Incoterms apply ______。
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
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
