Section One Directions: In this section, you will hear ten short statements. Each statement will be spoken only once. After each statement there will be a pause. During the pause, you must mall the four suggested answers marked A, B, C and D, and decide which is the best answer. Then mark the corresponding letter on the ANSWER SHEET with a single line through tile center.
[解析] Today's exchange rate is 866.83 yuan RMB to 100 US dollars.
7.
A.People cannot afford expensive objects without loans.
B.People can often pay for expensive objects in full at once.
C.People often pay for expensive items with loans from bank.
D.People can choose to pay for expensive items by installments.
A B C D
D
[解析] People can often pay for expensive objects by installments.
8.
A.He lost all his money and property in the fire.
B.He insured his property against fire.
C.The insurance company compensated for his loss in the fire.
D.The insurance company refused to compensate for his loss in the fire.
A B C D
C
[解析] The insurance company reimbursed him for his loss in the fire.
9.
A.The documents should conform with the clauses of L/C when negotiating.
B.The bank will dishonour L/C when exporters cannot provide the documents.
C.The documents should be, provided by exporters rather than the bank.
D.The documents do not necessarily conform with the clauses of L/C
A B C D
A
[解析] When the documents provided by exporters for negotiating do not conform with the clauses of L/ C, the bank can dishonour it.
10.
A.Personal cheques above 10,000 dollars can only be encashed at the issuing bank.
B.Personal cheques below 10,000 dollars can be paid to a third party through a third bank.
C.Personal cheques above 10,000 dollars can only be encashed at the opening bank.
D.Personal cheques below 10,000 dollars can be paid to a third party at a branch.
A B C D
C
[解析] Personal cheques exceeding the amount of 10,000 dollars payable to a third party can only be cashed at the branch where the account is opened.
Section Two Directions: In this section, you will hear ten short conversations. At the end of each conversation, a question will be asked about what was said. The conversation and question will be spoken only once. During the pause, you must read the four choices marked A, B, C, D, and decide which is the best answer. Then mark the corresponding letter on the ANSWER SHEET with a single line through the center.
[解析] W: What maturities are the most popular? M: Most of our customers use six - or twelve - month plan. Question: What are the two speakers talking about?
2.
A.Customs officer mid travelers.
B.Employer and employee.
C.Business associates.
D.Bank clerk and customer.
A B C D
D
[解析] W: Since I have some spare cash in my account, I would like to open a time deposit account here. Can you give me some information please? M: With pleasure. We have many kinds of time deposit accounts: 1 month, 3 month, 6 month and 1 year. Question: What is the possible relationship between the two speakers?
3.
A.Mail transfer is slow but it is cheap.
B.There are three ways for you to choose to send your remittance.
C.Telegraphic transfer is faster but more expensive.
D.Demand draft is the inost expensive way of remitting money.
A B C D
D
[解析] W: How would you like to send your remittance? By atoll, by TT or by demand draft? M: There is no hurry and I can do it with a mail transfer, which I think is cheaper. Is that right? Question: Which of the following is not correct according to the conversation?
4.
A.16,000
B.60,000
C.6,000
D.8,000
A B C D
C
[解析] W: By the way, if I have Chinese Yuan left after visiting China, can I change them back in Hong Kong? M: Of course you can. The official limit is now 6,000 Yuan--this is the amount you can take out from China. Come back to our bank and we'll buy them back. Question: What is the maximum of Chinese Yuan the woman is allowed to take out from China?
5.
A.Cash letters of credit.
B.Savings certificate.
C.Cashier's.
D.Certified checks.
A B C D
B
[解析] W: Then certified cheeks, cashier's and cash letters of credit are all variants of demand deposits. M: Yes, that's right. Question: Which of the following is not one form of demand deposits?
[解析] M: Oh, that would be very kind of you. You could call me at my office. The telephone number is 846 - 3589. W: 846 - 3589? Very well, sir. I'll ring you up as soon as tile remittance arrives. Question: What is tile man's telephone number?
7.
A.He wants to open a current account.
B.He wants to deposit some money in the bank.
C.He wants to rent a safe deposit box.
D.He wants to open a fixed time deposit accounts.
A B C D
C
[解析] M: Good morning. Are there any vaults in your bank? I want to rent a safe deposit box. W: I'm sorry, we don't offer this service. Question: What does the man want to do?
8.
A.May
B.September
C.October
D.November
A B C D
C
[解析] M: We have agreed on the terms of payment. Is it possible to effect shipment in September? W: I'm afraid not. Mid October, I think. Question: When is the earliest possible time of shipment?
9.
A.People prefer checks to bank drafts.
B.Whoever signs the check guarantees payment.
C.A bank draft is issued and guaranteed by a bank.
D.People prefer bank drafts to checks.
A B C D
A
[解析] W: Why are bank drafts sometimes preferred over checks? M: Well, as for a check, the party who signs it is the only one who guarantees payment. But a bank draft is issued and guaranteed by a bank. Question: Which of the following statements is not true according to the conversation?
10.
A.He wants to cash traveler's checks:
B.He wants to claim refund from the issuing bank.
C.He lost his traveler's checks.
D.He wants someone to contact the issuing bank for him.
A B C D
A
[解析] W: What can I do for you? M: Yes, please! My traveler's checks are gone. I wonder if you could get in touch with the issuing bank to claim refund for me. Question: Which of the following is not true about the man?
Section Three Directions: In this section you will hear three short passages. At the end of each passage, you Mil hear mine questions. The passages and the questions will be, spoken only once. After you hear a question, you must choose the best answer from the four choices marked A, B, C and D. Then mark the corresponding letter on the ANSWER SHEET with a single line through the center.
[解析] 21-24 A smart card is a secure, portable, tamper- resistant data- storage device. It is the exact size of a credit card and contains a computer with as much as power as the original minicomputers. Data stored in smart cards are accessed by placing the card in or near a smart card reader and providing the specific security access codes associated with the data desired. More than 70 million smart cards worth US $ 500 million were manufactured and distributed in 1996, and their use is doubling every year. The worldwide market for smart cards and associated smart card products and services in 1996 generated approximately US $ 2 billion in sales and is growing at the rate of about 20 percent per year. First developed in France in 1974, smart cards have since then attained various levels of sophistication, ranging from a simple prepaid card similar to a phone card, to portable electronic devices that may feature a keyboard and a liquid crystal display, like those used in GSM telephone subscriber. 21. Which of the following is not one of the features of smart cards?
2.
A.50 million.
B.20 million.
C.70 million.
D.60 million.
A B C D
C
[解析] How many smart cards were manufactured in 1996?
3.
A.Germany.
B.Finland.
C.France.
D.Italy.
A B C D
C
[解析] Where were smart cards first developed?
4.
A.A keyboard.
B.A liquid crystal display.
C.Portability.
D.Identity establishment.
A B C D
D
[解析] Which of the following is not one of the features of a portable electronic card?
[解析] 25-27 There are numerous challenges facing the banking industry when they are carrying out Internet banking services. The first one, which people care about most, is the provision of a secure platform for banking transactions which, protects the customers' privacy. The second challenge is whether management has the creativity and vision to harness the technology and provide customers with the new financial products necessary to satisfy their continually changing financial needs. The immediate question facing the banking industry is how to deliver high - quality products for the customers' convenience with high - tech, high - touch personal service for the right price. To achieve this, management has to balance the five key values that increasingly drive customers' banking decisions: simplicity, customized service, convenience, quality, and price. These values vary in levels of importance to customers, but together they represent a synergy of buying values. 25. Which of the following is the best title for the passage?
6.
A.2
B.3
C.4
D.5
A B C D
B
[解析] How many questions are mentioned according to the passage?
7.
A.Accessibility
B.Customized service
C.Quality
D.Convenience
A B C D
A
[解析] Which of the following is not one of the five key values that drive customers' banking decisions?
[解析] 28-30 China will continue to cut its tariff rates according to its commitments to the World Trade, Organization, a senior customs official said Tuesday. The average tariff rate was cut from 12 to 11 per cent in 2003. The number was earlier reduced from 15.3 per cent to 12 per cent. "Although the specific figure for tariff cuts has not been set for next year, we can assure the rates will be on a downward track," according to Lin Wenjie, deputy director of the General Administration of Customs. The detailed figure will soon be published by a special committee for tariffs, he added. 28. What is the average tariff rate in 2003?
9.
A.10%
B.10.3%
C.11%
D.not fixed
A B C D
D
[解析] What is the detailed figure, for tariff cut in 2004?
10.
A.Upward
B.Downward
C.Outward
D.Inward
A B C D
B
[解析] What is the trend in the changes of tariff rates?
Part Two Reading
Section One Directions: Each of the following sentences is provided with four choices. Choose the one that best completes the sentence.
1. If the money supply lags behind production, tike economy may suffer from ______ with equally undesirable effects.
A.inflation
B.crisis
C.debt
D.deflation
A B C D
D
2. The objective of Federal Reserve policy is to provide a money - supply ______ with the national objectives of stable prices, ,sound economic growth, and a high level of employment.
A.commensurate
B.related
C.connected
D.linked
A B C D
A
3. ______ deposits are assuming a larger portion of the transaction load, and they are being used more efficiently.
A.Long-term
B.Requirement
C.Demand
D.Bank
A B C D
C
4. The process becomes a bit more complicated, time - consuming, and expensive when checks are ______ between banks located In different parts of the country.
A.cleaned
B.paid
C.distributed
D.cleared
A B C D
D
5. Commercial banks perform a very important service to all sectors of the economy by providing facilities for the ______ of savings and making them available for economically and socially desirable purposes.
A.deposit
B.making
C.contribution
D.pooling
A B C D
D
6. The primary function of commercial banks is the ______ of credit to worthy borrowers.
A.distribution
B.disbursement
C.extension
D.payment
A B C D
C
7. In addition to financing the agricultural, commercial, and industrial activities of the natian, commercial banks facilitate consumption by making ______ loans.
A.fixed
B.consumption
C.consumer
D.short- tram
A B C D
C
8. Individuals who have accumulated an estate, even of moderate size, have an interest in ______ for the distribution of the assets before death.
A.making up
B.looking
C.pursuing
D.providing
A B C D
D
9. Many of these individuals have made wills and have asked trust departments to act as ______.
A.principal
B.executor
C.manager
D.supervisor
A B C D
B
10. Trust departments serve as trustees in connection with bond issues and as ______ agents and registrars for corporations.
A.resident
B.transfer
C.home
D.individual
A B C D
B
Section Two Directions: There are a number of blanks in each of the following passages. For each blank there are four choices marked A, B, C and D. You are supposed to choose the best answer and mark the corresponding letter on the ANSWER SHEET by drawing a single line through the center.
Passage One If a given borrower nee& more funds than a single bank can or will 1 , the borrower has two options: arranging loans from several financial institutions or using the syndication mechanism. With the 2 choice the borrower nee& only explain his or her financial condition and the requirements for the credit once. In addition, only one set of terms and conditions must be 3 and one loan agreement must be signed. Consequently, the borrower's name is only placed into the market once and all participants know the 4 and terms of the borrowing. When loans are arranged from multiple institutions or, equivalently, lines of credit are 5 at different institutions, the total amount of borrowing is unknown, and nary be exaggerated by market analysts.
1.
A.give
B.offer
C.provide
D.present
A B C D
C
2.
A.former
B.latter
C.next
D.previous
A B C D
B
3.
A.negotiated
B.talked
C.bargained
D.concluded
A B C D
A
4.
A.number
B.figure
C.fact
D.amount
A B C D
D
5.
A.withdrawn
B.drawn
C.given
D.chosen
A B C D
B
Passage Two Thus, from the borrower's 1 , syndication in both file domestic and international markets allows for the efficient arrangement of a larger amount of funds than any single lender can feasibly supply. In the Eurocurrency market, however, syndicated lending becomes less of a convenience and 2 of a necessity. The need to finance balance of payments deficits, coupled with the lack of 3 financing arrangements in external markets, creates a demand for huge bank loans by country borrowers. In the U.S. domestic market, if a business needs a large amount of long - term 4 , bank loans are only one of several options. The firm may also arrange for bond or equity issue. In external markets, however, there are fewer options, and moreover they may not be 5 .to borrowers from less - developed countries. Industrial country borrowers, both governmental and private, may have access to the international bond markets, but borrowers from less - developed countries generally do not. Thus the only available source of financing for the latter group may be the syndicated Eurocurrency loan market.
1.
A.view
B.aspect
C.viewpoint
D.point
A B C D
C
2.
A.more
B.less
C.few
D.much
A B C D
A
3.
A.the other
B.another
C.more
D.alternative
A B C D
D
4.
A.cash
B.funding
C.capital
D.borrowing
A B C D
B
5.
A.available
B.ready
C.allowed
D.suitable
A B C D
A
Section Three Directions: Read the following passages and determine whether the sentences are "Right" or "Wrong". If there is not enough information to answer "Right" or "Wrong", choose "Doesn't say". Then mark the corresponding letter on the ANSWER SHEET by drawing a single line through the center.
Passage One Capital is at the top of any bank supervisor's list. The most basic form of capital is equity capital, which is the shareholder's financial interest or net worth. Equity capital serves several purposes: it provides a permanent source of revenue for the shareholders and funding for the bank; it is available to bear risk and absorb losses; it provides a base for further growth; and it gives the shareholders reason to ensure that the bank is managed in a safe and sound manner. Minimum capital adequacy ratios are necessary to reduce the risk of loss to depositors, creditors and other stakeholders of the bank and to help supervisors pursue the overall stability of the banking industry. The Basle Committee's "Core principles for effective banking supervision" requires that supervisors set prudent and appropriate minimum capital adequacy requirements and encourage banks to operate with capital in excess of the minimum. When it appears appropriate due to the particular risk profile, uncertainties regarding the asset quality, risk concentrations or other adverse characteristics of a bank's financial condition, considerations of requiring higher than minimum capital ratios are encouraged. If a bank's ratio falls below the minimum, banking supervisors will act to ensure that it has realistic plans to restore the minimum in a timely fashion, or may consider putting additional restrictions on the bank's operation.
1. A bank's capital position is under close scrutiny of the bank supervisors.
A.Right
B.Wrong
C.Doesn't say
A B C
A
2. For the stability of the banking industry, the minimum capital adequacy ratios are not necessary.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. According to The Basle Committee's "Core principles fur effective banking supervision", banks are not encouraged to operate with capital lower than the minimum.
A.Right
B.Wrong
C.Doesn't say
A B C
A
Passage Two Concentration of' risk and large exposures is one of the major supervisory concerns. Large exposures to a single borrower, or to a group of related borrowers are a common cause of banking problems in that they represent a credit risk concentration. Large concentrations can also arise with respect to particular industries, economic sectors, or geographical regions or by having sets of loans with other characteristics that make them vulnerable to the same economic factors ( e. g., highly - leveraged transactions). Banking supervisors in many countries set prudential limits to bank exposures to single borrowers, groups of related borrowers and other significant risk concentrations. These limits are usually expressed in reruns of a percentage of bank capital and, although they vary, 25% of capital is typically the most that a bank or banking group may extend to a private sector non - bank borrower or a group of closely related borrowers without specific supervisory approval. Newly - established or very small banks may face practical limits on their ability to diversify, necessitating higher levels of capital to reflect the resultant risk. In addition, supervisors monitor the bank's handling of concentrations of risk and may require that bank report to them any such exposures exceeding a specified limit( e. g. , 10% of capital) or exposures to large borrowers as determined by the supervisors. In some countries, the aggregate of such large exposures is also subject to limits.
1. It would be very risky ff a large percentage of bank capital is extended to a company with highly- leveraged transactions.
A.Right
B.Wrong
C.Doesn't say
A B C
A
2. The upper limit of the percentage of bank capital that may be extended to a private sector non - bank barrower is set at 10%.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. Supervisors monitoring the bank's handling of risk concentrations may require that bank report their exposures over a specified limit.
A.Right
B.Wrong
C.Doesn't say
A B C
A
Passage Three A credit card is a plastic card (or its equivalent) to be used upon presentation by the cardholder to obtain money, goods, or services, possibly under a line of credit established by the card issuer. The cardholder is billed for any outstanding balance. Credit card customers are given a credit limit on the credit card account and can buy goods and services up to this amount. Normally, banks will set different credit lines to the different groups of cardholders. Every time the cardholder uses a credit card for purchasing, he/she must sign a sales slip in the presence of the seller, and the signature is then compared to the signature on the card. Copies of the Sales slips have the details of the card and they also show the details and amount of the sale. Each month the cardholder receives a statement from the bank which details all the transactions in the month, together with the total amount outstanding and any minimum amount that needs to be paid. When the full balance is not settled each month, the cardholder is charged a compound interest (say 0.05 % ) on the outstanding balance, and this is supposed to provide the bank with a main source of income (although in China, this revenue is still low because people are reluctant to nm into debt). Other two major sources of credit card services are the annual fee from the cardholders and the percentage of the sales revenue as the commission paid by the seller.
1. A credit card is a plastic card and the like to be used to obtain money, goods, or services and an overdraft is not allowed.
A.Right
B.Wrong
C.Doesn't say
A B C
B
2. Normally, banks will set different credit limits on different customers' credit card accounts.
A.Right
B.Wrong
C.Doesn't say
A B C
A
3. Each month the credit cardholder will receive a statement from the bank showing the details of the transactions, excluding tire total amount outstanding.
A.Right
B.Wrong
C.Doesn't say
A B C
B
4. If the balance of the credit card is not fully settled, the cardholder will have to pay a compound interest on the outstanding amount.
A.Right
B.Wrong
C.Doesn't say
A B C
A
Section Four Directions: There are 4 passages in this section. Each passage is followed by some questions or unfinished statements. For each of them there are four choices marked A, B, C, and D. You should make the best choice and mark the corresponding letter on the ANSWER SHEET by drawing a single line though the center.
Passage One A check is "an unconditional order in writing, addressed by a person to a bank, signed by the person making it, requiting the bank to pay on demand or a sum certain in money to, or to the order of, a specified person or to bearer." Three parties are essentially involved:a. Tile Payee--A person to whom a cheque is expressed to be payable,b. The Drawer--The person who writes the cheque,c. The Drawee--The banker on whom the cheque is drawn and to whom the order to pay is given. The banker is obliged to honour a customer's cheques up to the amount of his credit balance or agreed overdraft. A promissory note is "an unconditional promise in writing made by one person to another signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money to, or to the order of, a specified person or to bearer." A promissory note has only two parties: the maker who is liable to pay the note, and the payee who is entitled to the money it represents. Presentment for payment is not required to make the maker liable, unless the note is payable at a specific place, but presentment is necessary to make indorsers liable. An indorsed note payable on demand which has been indorsed must be presented for payment within a reasonable time. When the maker makes a promissory note, he or she undertakes to pay it according to its tenor and is precluded from denying to a holder in due course the existence of the payee and the payee's capacity at that time to indorse.
1. The drawee of a cheque is ______.
A.a banker
B.a payee
C.a drawer
D.payer
A B C D
A
2. A promissory note is ______.
A.a conditional promise in writing made by one person to another signed by the maker.
B.an unconditional order in writing made by one person to another signed by the maker.
C.an unconditional promise made by the banker to pay a specified person or bearer.
D.an unconditional promise in writing to pay a sum certain in money.
A B C D
D
3. As for differences between a cheque and a promissory note, which of the following statements is not true?
A.A check is an unconditional order, whereas a promissory note is a promise.
B.A check essentially involves three parties, whereas a promissory note has only two parties.
C.Most cheques are usually not negotiated, whereas promissory notes arc usually negotiated.
D.Both check and promissory note should be made unconditionally in writing.
A B C D
C
4. A cheque is expressed to be payable to ______.
A.the drawer
B.the payer
C.the drawee
D.None of the above.
A B C D
D
5. Presentment for payment of a promissory note is ______.
A.always required to make the maker liable
B.not always required to make the maker liable
C.not required to make indorsers liable
D.required to make the drawee liable
A B C D
B
Passage Two A combined transport bill of lading may evidence that goods have teen collected from a named inland place and have been dispatched to a port or inland container depot in the country of import. A through bill of lading is a similar document which may evidence dispatch of goods to a named destination. In many cases it is necessary to employ two or more carriers to get the goods to their final destination, The on - carriage may be either by a second vessel or by a different form of transport. Strictly speaking, where the two parties agree that goads will be sent at the expense of the seller to the buyer's own premises, then a through bill of lading should be used if any part of the journey is covered by a sea voyage. Transhipment bill of lading is used when the goods have to be transferred from one ship to another at a named transhipment port. This type is issued usually by shipping companies when there is no direct service between two ports, but when the shipowner is prepared to transship the cargo at an intermediate port at his expense. Once again the carrier has full responsibility for the whole journey, and these documents are usually considered to be documents of title if the appropriate negotiable wording appears. Container hill of lading is used when goods are packed in containers. Container bills of lading can be issued to cover goods being transported on a traditional port 7 to - port basis, or they can cover transport from an inland container depot in exporter's country to an inland container depot in the importer's country. Once again the shipping company is responsible for the whole journey, and these bills of lading are considered to be documents of title, provided they contain the appropriate negotiable wording.
1. Combined transport bill of lading may evidence that ______.
A.the goods have been transported to a port in the country of export
B.the goods have been delivered to a port in the country of import
C.the goods have been collected from a named inland place of import
D.two types of bill of lading are combined together
A B C D
B
2. In many cases, a through bill of lading involves ______.
A.only one carrier
B.not more than twO carriers
C.two or more carriers
D.only one form of transport
A B C D
C
3. With through bill of lading, the first part of the journey ______.
A.is covered by a sea voyage
B.is covered by land transportation
C.is covered either by a sea voyage or by land transportation
D.is covered by air transportation
A B C D
C
4. Transhipment bill of lading is used when ______.
A.any port of the journey is covered by a sea voyage
B.the whole journey is covered by sea voyage and when the goods have to be transferred from one ship to another at a named transhipment port
C.the whole journey is covered by land transportation
D.the ship owner is prepared to transship the cargo at an intermediate port at his expense
A B C D
B
5. Container bills of lading are. issued ______.
A.to dispatch the goods only from the port of export to the port of import
B.to collect the goods from the port of export
C.to dispatch the goods only from an inland container depot In exporter's country to an inland container depot in the importer's country
D.sometimes to dispatch the goods from the port of export to the port of import
A B C D
D
Passage Three On balance sheet, assets and liabilities are classified as either current or long - term to indicate their relative liquidity. Liquidity is a measure of how quickly an item may be converted to cash. Therefore, cash is the most liquid asset. Accounting receivable is relatively liquid asset because the business expects to collect the amount in cash in the near future. Supplies are liquid than accounts receivable, and furniture and buildings are even less so. Users of financial statements are interested in liquidity because business difficulties often arise owing to a shortage of cash. Current assets are assets that are expected to be converted to cash, sold, or consumed during the next 12 months or within the business's normal operating cycle if longer than a year. The operating cycle is the time span during which (1) cash is used to acquire goods and service, and (2) these goods and services are sold to customers, who in turn pay for their purchases with cash. For most businesses, the operating cycle is a few months. A few types of business have operating cycles longer than a year. Cash, accounts receivable and notes receivable due within a year or less are current assets. For some retail companies, inventory is also a kind of current asset. This account shows the cost of goods that are held for sale to customers. Long- term assets are all assets other than current assets, They are not held for sale, but rather they are used to operate the business. One category of long- term assets is plant assets, or fixed assets. Land, building, furniture and fixtures, and equipment are examples of plant assets.
1. Which of the following is the most liquid asset?
A.accounting receivable
B.cash
C.note receivable
D.land
A B C D
B
2. A business operating cycle is ______.
A.12 months
B.half a year
C.the time span during which cash is used to acquire goods and services'
D.always longer than a year
A B C D
C
3. Which of tile following does not belong to current assets?
A.cash
B.account payable
C.account receivable
D.note receivable
A B C D
B
4. Which of the following is not long term - assets?
A.machine
B.building
C.land
D.inventory for the retailer
A B C D
D
5. Which of the following statements is correct?
A.Liquidity is a measure of how quickly an item may be converted to cash.
B.Current assets have the most liquidity.
C.All other assets except cash are long- term assets.
D.Current assets include cash, accounts receivable and notes receivable only.
A B C D
A
Passage Four Cash flow analysis raises questions about the way firms generate and absorb cash. It is a powerful analytical tool and plays an important role in the analysis of a firm's liquidity. The purpose of analyzing cash flow is to understand what the company uses cash for, how it finances these cash disbursements. Additionally, cash flow projections indicate whether or not sufficient cash is expected to be generated to repay the proposed loan. As loans are always repaid with cash, the amount and timing of cash available, relative to the amount and timing of calls on cash, determines the company's ability to meet its obligations as they come due. The banker must not only be concerned with the repayment of the proposed loan, but also with other cash needs (e. g., capital expenditures) . The analyst's specific objective in cash flow analysis may include identifying what and how the company's cash needs have been financed, evaluating the appropriateness of how the company has financed its uses of cash, 'and determining if the appropriate source of repayment would generate sufficient cash to repay the proposed loan. The cash flow statement retraces the financing and investing activities of the firm, including the extent to which cash wa.,; generated and absorted from operations during the period. Most important, the statement reflects the variability of cash over time and the effectiveness of management in receipt and use of cash. Ratio analysis is used to compare certain factors, which may affect a company's ability to repay debt or otherwise satisfy its creditors. Ratio analysis concentrates on the past rather than on the future. There are many types of ratios, such as liquidity ratios, quick ratio, leverage ratios and profitability ratios etc. Liquidity ratios measure the company's ability to meet short- term obligations; quick (asset test) ratio is a more conservative and accurate of liquidity of the current ratio; leverage ratios measure the extent to which debt financing is used and profitability ratios measure management's ability to maximize revenues, control expenses and improve profitability.
1. The purpose of analyzing cash flow is to ______.
A.finance cash disbursements
B.understand the usage of cash
C.know whether or not cash at hand is enough to repay the loan
D.None of the above is correct.
A B C D
B
2. The company's ability to meet its obligations as they come, due ______.
A.is only determined by the amount and timing of its cash available
B.is only determined by the amount and timing of calls on its cash
C.is only determined by the amount of its cash available and the amount of calls on its {:ash
D.is determined by both the amount and timing of cash available and the amount and timing of calls on cash
A B C D
D
3. The repayment of the proposed loan ______.
A.is the banker's only concern
B.is the borrower's only concern
C.is one of the banker's concerns
D.is the borrower's only responsibility
A B C D
C
4. The cash flow statement reflects all of the following but ______.
A.the investing activities of the firm
B.the change of cash over time
C.the effectiveness of management in receipt and use of cash
D.the exact way firms generate and absorb cash
A B C D
D
5. All of the following statements are correct except ______.
A.quick ratio is one of the current ratios
B.quick ratio is used to measure the liquidity
C.quick ratio is a more accurate measurement of liquidity of the current ratio
D.quirk ratio is exact the same as the current ratio
A B C D
D
Part Three Writing
Section One Directions: Describe the procedures of transferable credit according to the number order in the following charter. Write your answer on the ANSWER SHEET:
1.
① A supplies goods and documents to B. ② B sends documents (revised) to C. ③ C opens credit in favor of B. ④ B transfers credit (in full or parks) to A.
Section Two Directions: Translate the following sentences into Chinese. Write your translation on the ANSWER SHEET.
1. Although capital market development is expected to speed up, bank's in China, which currently provide about 75 percent of aggregate financing in the economy, are likely to continue playing a dominant role in financing economic and technological development as well as the economic reform in the foreseeable future.
Bank C Boston U.S.A Dear Sirs, Telex Not Tested We acknowledge receipt of your telex dated April 6, 2003 informing us of your payment of our banking charges USD5,389.00 by debiting your a/c with ns. But we would like to point out that the telex is not authenticated by a test. We should think that for telexes or cables involving your authorization or commitments, it would be best to have them tested as a measure to safeguard your interest and enable us to feel safe in carrying out your instructions.
Yours faithfully, ××× Manager Bank of China Beijing Branch