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 read the four suggested answers marked A, B, C and D, and decide which is tile best answer. Then mark the corresponding letter on the ANSWER SHEET with a single line through the center.
A.Commercial banks mainly provide short- term loans for the capital market.
B.The capital market mainly depends on the acquired deposits and the funds from other channels.
C.Short - term loans are mainly from the acquired deposits and the funds from other channels.
D.Commercial banks mainly depend on the capital market for deposits and the funds.
A B C D
A
[解析] Commercial banks are mainly to provide short- term loans for the capital market with tile acquired deposits and the funds from other channels.
7.
A.Your countersign conforms with the specimen signatures.
B.Your countersign has to be consistent with the specimen signatures.
C.Your countersign doesn't conform with the specimen signatures.
D.Your countersign must conform with the specimen signatures.
A B C D
C
[解析] Your countersign is inconsistent with the specimen signatures.
8.
A.The credit cannot be used until the issuing bank agrees to amend it.
B.Please go to the issuing bank to have your credit amended.
C.Please ask the issuing bank when it can amend the credit.
D.The credit doesn't need any amendment once it is issued.
A B C D
B
[解析] Please ask the issuing bank to make an amendment of the credit.
9.
A.Exchange rates change daily within the limits set in the exchange regulations.
B.Exchange rates are laid down in the exchange regulations.
C.Exchange rates fluctuate daily sometimes beyond tile limits set in the exchange regulations.
D.Exchange rates fluctuate daily several times within the limits in the exchange regulations.
A B C D
A
[解析] Exchange rates fluctuate daily within the limits laid down in the exchange regulations.
10.
A.Financial reporting is meant to provide information helpful for making investment and lending decisions.
B.Financial reporting is primarily used to make investment and lending decisions.
C.Investment and lending decisions cannot be made without financial reporting.
D.The primary objective of financial reporting is to make investment and lending decisions.
A B C D
A
[解析] The primary objective of financial reporting is to provide information useful for making investment and lending decisions.
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: It looks like you me worried. May I help you? M: Yes, I hope so. I've lost my passbook. Question: Which of the following is true?
2.
A.Housing loan.
B.Foreign currency loan.
C.Dollar loan.
D.Credit loan.
A B C D
A
[解析] M: I'd like to know something about mortgage loans. Can I get some information from you? W: All fight. We have certain requirements for lending money to individuals. Question: What are they talking about?
3.
A.January 24.
B.February 31.
C.January 25.
D.February 26.
A B C D
C
[解析] W: What's the expiry date of the L/C? M: The L/C will expire on January 25. Question: When will the letter of credit expire?
4.
A.Payment by demand drafts.
B.Payment by collection.
C.Payment by letters of credit.
D.Payment by remittance.
A B C D
A
[解析] M: Can you give me a brief account of the usual modes of payment? W: Generally, there are three types: payment by remittance, payment by collection and payment by letters of credit. Question: Which of the following is not among the usual modes of payment mentioned by the woman?
5.
A.To avoid problems arising from inflation.
B.To prevent possible fraud.
C.To avoid problems arising from fluctuations of exchange rote.
D.To prevent overdrawing.
A B C D
A
[解析] W: Why should it be deposited within such a short time? M: To avoid problems arising from fluctuations of exchange rate and to prevent possible fraud or overdrawing. Question: Which of the following is not among the reasons given by the man?
[解析] W: As for the documents they consist of bill of lading, insurance policy, inspection certificate, invoice, certificate of origin and packing list. The most important document is the bill of lading. M: Wait a minute, let me take them down in my notebook. Question: Which document is the most important?
7.
A.Bank clerk and customer.
B.Receptionist and foreign guest.
C.Customs officer and traveler.
D.Business associates.
A B C D
A
[解析] M: Can I convert some American dollars into Chinese yuan here? I will stay in Beijing for several weeks. W: Yes, we are an authorized foreign exchange bank and can change them for you. Question: What is the possible relationship between the two speakers?
8.
A.Four
B.Two
C.Three
D.Five
A B C D
C
[解析] M: And what margins will the lending bank charge? W: Margins mainly depend on these factors: evaluation of credit risk, maturity of credit, and the starting point from which onwards the rate of interest shall be firm. Question: How many factors do margins charged by the lending bank mainly depend on?
9.
A.Improper packing.
B.Rough handling.
C.Damaged goods.
D.Defective goods.
A B C D
C
[解析] M: We got news this rooming that the tea sets arrived at the destination yesterday were seriously damaged. W: Have you found the cause of damage? Question: What me they talking about?
10.
A.At the bank.
B.At the travel agency.
C.At the customs.
D.At the company office.
A B C D
C
[解析] M: Have you got anything to declare, madam? W: No, I haven't got any dutiable things with me. Question: Where does tiffs conversation most probably take place?
Section Three Directions: In this section you will hear three short passages. At the end of each passage, you will hear some 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] 21-23 The Chinese currency is the Remninbi. China has maintained a unified managed floating exchange rate since January 1994. The exchange rate of the Renminbi is determined by the inter bank foreign exchange market. The People's Bank of China armounces a reference rate for the Renmiabi against the U.S. dollar, the Hong Kong dollar, and the Japanese yen based on the weighted average price, of foreign exchange transactions during the previous day's trading. Daily movement of the exchange rate of the Renminbi against the U.S. dollar in inter - bank foreign exchange market is limited to 0.3 % on either side of the reference rate as announced by the PBC. The buying and selling rates of the Renmiabi against the Hong Kong dollar and the Japanese yen may not deviate more than 1% on either side of the reference rate. In the case of other currencies, the deviation may not exceed 0.5 % on either side of their respective rates. 21. When did China begin to maintain a unified managed floating exchange rate?
2.
A.The People's Bank of China.
B.China Foreign Exchange Trading Center.
C.Inter- bank foreign exchange market.
D.The State Administration of Foreign Exchange.
A B C D
C
[解析] Who determines the exchange rate of the Renminbi?
3.
A.1%
B.0.3%
C.0.5%
D.0.4%
A B C D
B
[解析] What is the deviation allowed on daily movement of the exchange rate of Renmiubi against the U.S. dollar?
[解析] 24-27 Consumer Credits are high risk and high interest credit products, which are usually classified into three sorts: amortization loans, credit cards and non - installment loans for purchasing cars, non - structure houses or investing a little amount and so on. Their maturity usually range from two to five years. Education loans just one type of amortization loans. Credit cards, first issued by Franklin National Bank in 1952, are a kind of revolving loan, and are getting more and more popular. Non- installment loans are a kind of short - term loan to meet temporary need and are supposed to be paid back at one time. They are. also called bridge loans. 24. Which of the following is not one of the features of Consumer Credits?
2.
A.Collateral loan.
B.Education loan.
C.Mortgage loan.
D.Commercial loan.
A B C D
B
[解析] Which of the following is one type of amortization loans?
3.
A.1952
B.1958
C.1962
D.1968
A B C D
A
[解析] When ware credit cards first issued?
4.
A.It is a kind of short - term loan.
B.It is also called bridge loan.
C.It is supposed to pay back at one time.
D.Its maturity exceeds five years.
A B C D
D
[解析] Which of the following is not true about non - installment loans?
[解析] 28-30 TOKYO: A rise in Tokyo stock prices helped Japan's big life insurance firms report an improvement in their financial health last Thursday, but a drop in the value of outstanding policies showed public confidence in the insurers remained low. Japanese share prices rose nearly 30 per cent in the April - September period. That helped improve the balance sheets of long - struggling life insurers, although it was not enough to close the "negative spread" between insurers' investment returns and the returns they need in order to meet obligations to policyholders. "Because of a rise in domestic stock prices, life insurers managed to get out of their crisis - like situation," said Hidetaka Kawakita, a professor at Japan's Chuo University and a former fund manager at top insurer Nippon Life Insurance Co. "But looking at the bigger picture, nothing has really changed, and their negative spreads remain huge." 28. What is this passage mainly about?
2.
A.Rise.
B.Fall.
C.Remain unchanged.
D.Not sure.
A B C D
A
[解析] How do you report Japanese share prices in the April - September period?
3.
A.The value of outstanding policies went down.
B.Life insurers' negative spreads tended to grow small.
C.Public confidence in the insurers remained low.
D.A rise in Tokyo stock helped improve the balance sheets of life insurers.
A B C D
B
[解析] Which of the following statements is not true according to the passage?
Part Two Reading
Section One Directions: Each of the following sentences is provided with four choices. Choose tile one that best completes rite sentence.
1. Although the company showed a profit, the balance sheet looks increasingly ______.
A.bright
B.dim
C.shallow
D.fragile
A B C D
D
2. ______ money refers to currency issued on the basis of bank's credit instead of gold reserve.
A.Fair
B.Fiduciary
C.Fixed
D.Deposit
A B C D
B
3. Increased flows of world capital intensify financial competition among nations. This trend places pressures on national government to their domestic markets and liberalize international capital movements.
A.remove
B.settle
C.deregulate
D.control
A B C D
C
4. Many financial transactions are ______ sheet items such as interest rate swaps and are not clearly identified through the usual reporting channels.
A.zero
B.capital
C.off-balance
D.major
A B C D
C
5. The bankers ______ the steel company's new shares, which means the share issue will be sold to the bankers instead of the public directly.
A.underwrite
B.undercharge
C.undertake
D.underestimate
A B C D
A
6. With no interest rate ______ on deposits or restrictions on maturities, banks can offer any deposit product customers demand.
A.cut
B.ceilings
C.demand
D.contract
A B C D
B
7. From bank's perspective, liabilities have become more interest elastic, so that small rate changes can produce large fluctuations in ______ balances.
A.outstanding
B.outreaching
C.remaining
D.demanding
A B C D
A
8. Checks are attractive because they are readily accepted and provide formal ______ of payment.
A.credit
B.verification
C.clarity
D.collection
A B C D
B
9. Normally, ______ capital loans are secured by accounts receivable or by pledges of inventory and carry a floating interest rate on the amounts actually borrowed against the approved credit line.
A.current
B.stock
C.working
D.long-term
A B C D
C
10. Dealers in government and private securities need short - term financing to purchase new securities and carry their existing portfolios of securities until those securities are sold to customers or reach
A.business
B.markets
C.maturity
D.objective
A B C D
C
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 The Securities Exchange Act of 1934 established the Securities and Exchange 1 (SEC) and gave it authority 2 the securities markets. All brokers and dealers doing business in the organized markets must register 3 the SEC. A broker assists the trading process by buying or selling securities in the market for a(n) 4 . A dealer satisfies investors' trades by buying and selling securities from his own inventory. In addition, attempts to 5 securities prices were declared illegal.
1.
A.Committee
B.Commission
C.Congress
D.Convention
A B C D
B
2.
A.over
B.on
C.above
D.for
A B C D
A
3.
A.in
B.on
C.with
D.from
A B C D
C
4.
A.buyer
B.seller
C.investor
D.producer
A B C D
C
5.
A.manipulate
B.control
C.adjust
D.follow
A B C D
A
Passage Two In addition to federal regulation of investment banking, most states have blue - sky laws to protect investors 1 fraudulent security offerings. Blue - sky laws apparently get their mine from the efforts of some unscrupulous operators 2 , if not restricted, would promise to sell investors pieces of the blue sky. Because state laws differ 3 their specific regulations, the federal government is the 4 regulator of investment banking. The most common 5 of state blue - sky laws is that of misrepresenting the financial condition and asset position of companies.
1.
A.to
B.on
C.in
D.from
A B C D
D
2.
A.whom
B.who
C.where
D.whose
A B C D
B
3.
A.from
B.in
C.on
D.at
A B C D
B
4.
A.secondary
B.main
C.alternative
D.primary
A B C D
D
5.
A.mistake
B.errors
C.fraud
D.violation
A B C D
D
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 There are three key objectives of off - site surveillance. The first is to identify banking institutions that, while currently basically healthy, may face problems in the short or medium term. Through forward - looking surveillance techniques, the supervisor can address problems before they become unmanageable. Surveillance is particularly important in countries where onsite examinations are generally spaced apart by a year or even longer, and the potential for problems to develop and expand between bank examinations is great. The second major objective is to monitor very closely banking institutions already identified as having significant problems. This improves the supervisor's ability to prevent existing problems from growing. It also provides the supervisor with the information necessary, on a continual basis, to help the institution work through the problems (or to resolve the institution through a sale or closure). The third objective is to assess broad patterns and trends in the banking sector. It is particularly important for bank supervisors to be cognizant of nationwide economic trends in order to be able to develop policy positions that are both relevant and beneficial.
1. off- site surveillance helps to identify the banking institutions with potential problems.
A.Right
B.Wrong
C.Doesn't say
A B C
A
2. Off- site surveillance can do nothing about the existing problems of banking institutions.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. Off- site surveillance enables bank supervisors to be aware of the nationwide economic trends and thus facilitates policy development in the banking sector.
A.Right
B.Wrong
C.Doesn't say
A B C
A
Passage Two Supervisory corrective action programs can be either formal or informal in nature, Formal programs carry legal sanctions. Bankers may be willing to work with their supervisors in developing and implementing a corrective action program. At tile conclusion of the examination, management and the examiner may agree on such a program and a timetable for its implementation. In those cases where a bank is undercapitalized or where bankers are unwilling to take the necessary corrective measures voluntarily, formal remedial actions may be required to correct the problem and restore the bank's capital position before further deterioration occurs in the bank's financial condition. In the absence of cooperation by the bank, the supervisor may take such formal actions as the issuance of written agreements and cease and desist orders. These actions may also include capital directives and orders to suspend or remove individuals from the bank. In most developed countries, formal actions are enforceable in courts and failure to comply may result in civil money penalties or criminal punishment. They may be made public, which can be very embarrassing to tile banks, their officers and directors.
1. Legal sanctions here refer to legal approval.
A.Right
B.Wrong
C.Doesn't say
A B C
B
2. In case banks are undercapitalized but reluctant to take necessary corrective measures voluntarily, the supervisor might take formal actions to order the bank to stop engaging in a specified practice or violation.
A.Right
B.Wrong
C.Doesn't say
A B C
A
3. Banks who fail to comply with the formal remedial actions might face financial penalties or criminal punishment.
A.Right
B.Wrong
C.Doesn't say
A B C
A
Passage Three To finance the national debt, the government issues a variety of debt securities. The most widely held liquid security is the Treasury bill, which is commonly issued by the ministry finance. However, some Treasury bills, like the Treasury bill of the U.S. government, do not actually pay interest. Instead they are issued at a discount from par (their value at maturity). The investor's yield comes from the increase in tile value of the security between the time it was purchased and the time it matures. Treasury bills are attractive to investors because they are backed by the government and therefore are virtually free of default risk. Because even if the government van out of money, it could simply print more to pay them off when they mature. The risk of unexpected changes in inflation is also low because of the short term to maturity. The markets for Treasury bills in most developed countries are deep and liquid. A deep market is one with many different buyers and sellers. A liquid market is one in which securities can be bought and sold quickly and with low transaction costs. Investors in markets that are deep and liquid have little risk that they will not be able to sell their securities when they want to.
1. Treasury bills are short - term and virtually free of default risk.
A.Right
B.Wrong
C.Doesn't say
A B C
A
2. As some treasury bills do not actually pay interest, they are not attractive to investors.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. The markets for treasury bills in most developed countries have many different buyers and sellers.
A.Right
B.Wrong
C.Doesn't say
A B C
A
4. Investors in deep and liquid markets face immense risk that they will not be able to sell their securities when they want to.
A.Right
B.Wrong
C.Doesn't say
A B C
B
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 through the center.
Passage One When a bill of exchange is drawn under a documentary credit, the drawer is assured of acceptance and payment by the issuing bank provided that he has fulfilled all the terms and conditions of the credit. No such assurance exists without a documentary credit, however, and therefore to trade on a documentary bill basis is much more risky from the point of view of the exporter. Nevertheless, as the documents are channeled through the banking system with instructions that they should be handed over to the importer only against acceptance or payment of the bill, the system obviously does offer more protection than trading on the basis of clean bills of exchange. If when the exporter asks his bank to collect a documentary bill on his behalf, he instructs the bank to release the documents against acceptance of the bill, the bill is known as a D/A bill (documents against acceptance). If the documents are to be released only against payment, the bill is a D/P bill (documents against payment). Where a sight (demand) bill is drawn, the documents will be handed over only against payment, but for the majority of usance bills the instruction to the bank is to release documents against acceptance of the bill.
1. When a bill of exchange is drawn under a documentary credit, the drawer can be assured of acceptance and payment by the ______.
A.opening bank
B.advising bank
C.negotiating bank
D.the opener of the documentary credit
A B C D
A
2. Which of the following statements is correct?
A.Documentary credit is also referred to as documentary bill.
B.Documentary credit and documentary bill are different in that under a documentary credit, the drawer can be assured of acceptance and payment by the issuing bank.
C.Trade on a documentary credit basis is much more risky from the point of view of the exporter.
D.When a bill of exchange is drawn under a documentary credit, the issuing bank should make unconditional payment to the drawer.
A B C D
B
3. To trade on a documentary bill basis, the documents are ______.
A.released to the importer only against payment
B.released to the importer against acceptance and payment
C.released to the importer only against acceptance
D.released to the importer either against acceptance or payment of the bill
A B C D
D
4. All of the following statements are correct except ______.
A.trading on a documentary bill basis offers more protection than trading on the basis of clean bills of exchange
B.to trade on a documentary bill basis, the documents are handed over to the importer only against acceptance or payment of the bill
C.to trade on a clean bill basis, the documents are handed over to the importer only against acceptance or payment of the bill
D.to trade on a documentary credit basis, the drawer is assured of acceptance and payment by the issuing bank
A B C D
C
5. Under D/A, documents are ______.
A.released to the importer against payment of the bill
B.released to the importer against acceptance of the bill
C.released to the importer against payment or acceptance of the bill
D.released to the importer against acceptance of the sight bill
A B C D
B
Passage Two Marine/Ocean Bills of Lading are issued when the goods are being transported from one port to another by ship. Short Form Bill of Lading does not contain the full details of the contract of carriage on the hack. However, such bills of lading fulfill all the other functions of bills of lading, and in particular they are considered to be documents of title. Liner Bills of Lading fulfill all the nomad functions of a bill of lading, including that of document of title. The liner bill of lading indicates that goods are being transported on a ship which travels on a scheduled route and has a reserved berth at destination; thus the exporter can reasonably assume that his goods will reach the buyer's country by a set date, A Charter Party Bill of Lading is issued by the hirer of a ship to the exporter. The terms of the bill of lading are subject to the contract of hire between the ship's owner and the hirer. Such bills are usually marked subject to charter party. Because of the legal complexity involved, charter party biffs of lading are not usually considered to be documents of title. Negotiable Bill of lading may be negotiable by endorsement or transfer. Basically this kind of bill of lading is a negotiable document which allows the goods to be transferred by endorsement and delivery. This situation allows one or other parties to have the control over title to the goods. As for Bill of lading issued by Freight Forwarders, unless otherwise authorized in the credit, banks will only accept a bill of lading issued by a freight forwarder if it appears on its face to indicate: · The name of the freight forwarder as a carder and to have been signed or otherwise authenticated by the freight forwarder as carrier, or · The name of the carrier and to have been signed or otherwise authenticated by the freight forwarder as a named agent for or on behalf of the carrier.
1. According to the passage, all of following bills of lading are considered documents of title except ______.
A.short form bill of lading
B.liner bills of lading
C.charter party bill of lading
D.negotiable hill of lading
A B C D
C
2. A charter party bill of lading is usually ______.
A.a bill of lading independent of the charter party
B.a bill of lading dependent on the charter party
C.a bill of lading dependent on the sales contract
D.considered to be a document of title
A B C D
B
3. According to the passage, the "charter party" means ______.
A.hiring document
B.hiring person
C.either hiring document or hiring person
D.None of the above.
A B C D
A
4. Bill of lading issued by freight forwarders ______.
A.will be, accepted by the bank without any condition
B.will not be accepted by the bank even if it appears on its face to indicate the name of the freight forwarder as a carrier and to have been signed by the freight forwarder as carrier
C.will be accepted by the bank if it appears on its face to indicate the name of the freight forwarder as a carrier anti to have been signed by the freight forwarder as carrier
D.will be accepted by the bank if the letter of credit gives such permission
A B C D
D
5. All of the following statements are correct except ______.
A.even if short form bill of lading does not contain the full details of the contract of carriage, it can fulfill all the other functions of bills of lading
B.the liner bill of lading indicates that goods are being transported on a ship which travels on a scheduled route
C.a charter party bill of lading is issued only by the owner of a ship to the exporter
D.unless otherwise authorized in the credit, banks will only accept a bill of lading issued by a freight forwarder if it appears on its face to indicate the name of the carrier and to have been signed by the freight forwarder as a named agent for the carrier
A B C D
C
Passage Three Liabilities are "outsider claims", which are economic obligations, debts payable to outsiders. These outside parties are called creditors. Financial statement users such as creditors are, interested in the due dates of an entity's liabili6es. The sooner a liability must be paid, the more current it is. Liabilities that must be paid on the earliest future date create the greatest strain on cash. Therefore, the balance sheet lists liabilities in the order in which they are due. Knowing how many of a business's liabilities are current and how many are long - term helps creditors assess the likelihood of collecting from the entity. Balance sheets usually have at least two liability classifications: current liabilities and long- term liabilities. Current liability are debts that are due to be paid within one year or with the entity's operating cycle. Notes payable due within one year, salary payable, unearned revenue, and interest payable owed on notes payable are current liabilities. Long - term liabilities are those liabilities other than current ones.
1. The liabilities are classified as current or long- term liabilities according to ______.
A.the liquidity of the liability
B.the future date when the liability must be paid
C.the operating cycle
D.one year
A B C D
B
2. Liabilities are ______.
A.money borrowed from banks
B.money received from creditors
C."outsider claims", which are economic obligations, debts payable to outsiders
D.notes receivable
A B C D
C
3. Which of the following is current liability?
A.cash
B.inventory
C.salary payable
D.money from the bank
A B C D
C
4. Which of the following is long- term liability?
A.debt payable due with 10 years
B.inventory
C.unearned revenue
D.note payable due within 6 months
A B C D
A
5. For a note payable to be paid in installments within 5 years, which of' the following statements is correct?
A.The first installment due within one year is a current liability.
B.The first installment due within one year is a long- term liability.
C.All the installments due are long - term liabilities.
D.All the installments due are current liabilities.
A B C D
A
Passage Four New securities by companies are usually brought to market after advice and a commitment to underwrite by an investment banking firm. Underwriting simply means that the investment banker premises to buy the securities. The investment bank helps design the security and the investment banker buys it from the issuer with the intent of selling it to investors as quickly as possible. Usually, the issue is not subscribed to in its entirety by the original investment banker but is syndicated among other institutions as well. Through the syndication process, the original investment banker invites others to subscribe to a part of the issue, receiving a predetermined portion of the fees in return. The original investment banker becomes known as the lead manager of the deal. If there is more than one lead, the group is referred to as co - lead managers. The firm that deals directly with the company will be responsible for any syndicate formation and also for final payment on behalf of the syndicate. It is referred to as the bookrunner for the issue. New issues of common stock come into two varieties--primary distributions and secondary distributions. Primaries are sales of stock that have never been issued before. There are two types of primary distributions--initial public offerings (IPOs) and additional floats of companies' stock that will dilute each shareholder's existing holding. Of the two, the latter are more common in the new issues market for equities since they involve offerings of shares of larger, more mature companies seeking additional equity capital. Secondary distributions are, sales of stock that previously existed in some form or other but are too large to be accommodated on the stock exchanges. Procedures for secondaries often follow those for primaries although the offering period is much shorter and may involve a matter of hours rather than days. The actual marketing for these issues is done by investment bankers directly to the public. On rare occasions, companies have attempted to sell their shares or bonds directly to the public, avoiding investment banking fees. Unless the company is very well known, such attempts are less than successful. The behavior of investment bankers is key to the reception of new issues and directly affects the cost of capital for a company. As a result, the choice of an investment banker is crucial for a company, and the wrong choice could affect its costs over the near term. This is true for bonds as well as for common stocks.
1. According to the passage, underwriting simply means ______.
A.that the investor promises to buy the securities
B.that the investment banker promises to sell the securities
C.that the investment banker promises to buy the securities
D.that the investor promises to sell the securities
A B C D
C
2. Usually, the original investment banker ______.
A.subscribes to the issue in its entirety
B.is prohibited from subscribing to the issue
C.subscribes to a part of the issue
D.is prohibited from subscribing to only part of the issue
A B C D
C
3. When the issue is syndicated among the original investment banker and other institutions, ______.
A.there is only one lead manager
B.there must be more than one lead manager
C.all the parties concerned are lead managers
D.there is one lead manager or more than one lead manager
A B C D
D
4. None of the following statements is true except ______.
A.initial public offerings will dilute each shareholder's existing holding
B.additional floats of companies stock will dilute each shareholder's existing holding
C.compared with additional floats, initial public offerings are more common in the new issues market for equities
D.initial public offerings usually involve offerings of shams of larger, more-mature companies seeking additional equity capital
A B C D
B
5. The actual marketing for new issues ______.
A.is usually done by investment bankers indirectly to the public
B.is most of the time, clone by the companies directly to the public
C.is never done by the companies directly to the public
D.is usually done by investment bankers directly to the public
A B C D
D
Part Three Writing
Section One Directions: Describe the procedures of back- to - back credit according to tile number order in the following charter. Write your answer on the ANSWER SHEET.
1.
① A supplies documents to B. ② B supplies documents (revised) to C. ③ C opens first credit in favor of B. ④ B opens second credit in favor of A.
Section Two Directions: Translate the following sentence into Chinese. Write your translation on the ANSWER SHEET.
1. The PBC undertakes to formulate and implement monetary policy; issue currency and regulate its circulation; manage the official international reserves; supervise monetary markets, manage the state foreign exchange market and gold reserves market; act as fiscal agent; provide payment and settlement services; and participate in international financial cooperation on behalf of the state.
Bank A Chicago U.S.A Dear Sirs, Request for a report on A & B Co., New York A & B Co., New York wishes to have a large stun of loan from us and has given you as a reference. We would be grateful if you would supply us with the information about the company's general standing and whether, in your opinion, they are likely to be reliable for credit up to USD 873,000, and whether they will settle their account promptly. You should rest assured that any information you supply will be treated in strict confidence.
Yours faithfully, ××× Manager Bank of China Beijing Branch