Section One Directions: In this section, you will hear short statements. Each statement will be spoken only once. After each statement there will be a pause. During file pause, you must read file 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 the center.
C.Rising debt amid a global recession creates special risks.
D.Debt can stimulate growth.
A B C D
C
[解析] But rising debt amid a global recession creates special risks.
2.
A.In the early period of the World Bank's existence, loans were granted mainly to European countries.
B.In the early period of the World Bank's existence, loans were granted mainly to economically developing countries in Africa.
C.In the early period of the World Bank's existence, loans were granted mainly to Asia and Latin America.
D.Recently, loans were granted' mainly to European countries.
A B C D
A
[解析] In the early period of the World Bank's existence, loans were granted chiefly to European countries and were used for the reconstruction of industries damaged or destroyed during World War Ⅱ.
3.
A.The bond maturity date can range from 1 to 30 years.
B.The bond maturity date can range from 1 to 10 years.
C.The bond maturity date can range from 10 to 30 years.
D.The bond maturity date can range from 1 to 20 years.
A B C D
A
[解析] Face value represents the total amount of cash payable to the owner at the bond maturity date, which can range from 1 to 30 years.
4.
A.There are only private security issuers.
B.There are only public security issuers.
C.There are two kinds of security issuers: public security issuers and private security issuers.
D.There are no private security issuers.
A B C D
C
[解析] Security issuers are classified as either private or public.
5.
A.The law on the People's Bank of China was passed in 1995.
B.The National People's Congress session passed the law in 1994.
C.The law on the People's Bank of China was passed in 1998.
D.The law was passed in 2001.
A B C D
A
[解析] The National People's Congress session finally passed the Law on the People's Bank of China on March 18, 1995.
[解析] What are profit - making businesses that accept deposits and use these funds to make loans?
7.
A.Individuals receive money in the form of salaries and wages.
B.Individuals receive money in the form of cheques.
C.Individuals don't spend money on goods and services.
D.Individuals spend money on education.
A B C D
A
[解析] Individuals receive money in the form of salaries and wages, which they spend on goods and services.
8.
A.Finance companies offer long - term loans to businesses.
B.Finance companies offer long - term loans to individuals.
C.Finance companies offer short - term loans to businesses or individuals.
D.Finance companies don't offer short- term loans to businesses or individuals.
A B C D
C
[解析] Finance companies offer short- term loans to businesses and individuals.
9.
A.The Bank of China is not a state - owned enterprise.
B.The Bank of China is a state - owned enterprise.
C.The Bank of China is not a foreign exchange bank.
D.The Bank of China is not very important.
A B C D
B
[解析] The bank of China is a state - owned enterprise, and is a specialized foreign exchange bank of the People's Republic of China.
10.
A.100 million
B.110 million
C.10 million
D.80 million
A B C D
A
[解析] In accordance with the relevant Chinese rules and regulations, a foreign bank is obliged to have a starting capital of no less than RMB 100 million to open an organ actually doing banking business.
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 the 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.
C.The man wants to draw some money from tile bank.
D.The man wants to have a talk with the woman.
A B C D
C
[解析] M: Excuse me, but can I draw on my account for payment of things I buy in China? W: Certainly, sir. Q: What does the man want to do?
2.
A.The information is on the beard.
B.The information is on the desk.
C.The information is in the computer.
D.The information is on the book.
A B C D
A
[解析] W: What is the interest rate for the saving account? M: The detailed information is on tile board. Please go and see it. Q: Where is the information?
3.
A.In a shop.
B.In a drugstore.
C.In a bank.
D.In a school.
A B C D
C
[解析] W: What shall I do then? M: Now take these deposit slips over to the teller, and he'll be glad to take care of you. Q: Where is tile woman?
4.
A.From the clerk at the exchange desk.
B.On the board.
C.On the desk.
D.On the notebook.
A B C D
A
[解析] W: What is the rate of exchange? M: Sorry, I'm not sure. You will have to ask at the exchange desk. He can give you the exchange rate. Q: Where can he find the exchange rote?
5.
A.109
B.118
C.189
D.119
A B C D
B
[解析] W: I was told that there were more than a hundred foreign banks have opened their branches in China, is that so? M: Yes, from 1981 up to the end of 1994, altogether 118 foreign banking business organs opened their business in China, including 109 branches. Q: How many foreign banking business organs opened their business in China?
B.Get the credit information of their cooperative partner.
C.Sign the contract.
D.Cooperate with the partner.
A B C D
B
[解析] W: Can I get file credit information of our cooperative partner? M: Yes, but you should first fill in the form and sign it. Q: What does the woman want to do?
7.
A.The advantages are considerable.
B.They can last four to five times as long as paper notes.
C.They can be used for a long time.
D.They are cheap.
A B C D
B
[解析] W: What are the advantages of plastic notes? M: The advantages are considerable. They cost about twice as much as paper notes but last four or five times as long. Q: What are the advantages of plastic notes?
8.
A.Your age and circumstances.
B.Economic conditions.
C.Your age and circumstances, as well as economic conditions.
D.Your appearance.
A B C D
C
[解析] W: Which elements will determine the right investment for you? M: Your age and circumstances, as well as economic conditions, will determine the right investment for yon. Q: Which elements are important to your right investment?
9.
A.Stocks.
B.Bonds, property or collectables.
C.Insurance.
D.Stamps.
A B C D
B
[解析] W: You only buy stocks? M: No, I also consider bonds, property or collectables to protect myself against poor performance in one asset class. Q: What were the man's other investments?
10.
A.915
B.9150
C.1950
D.9151
A B C D
D
[解析] W: I've heard there were a lot of personal bankruptcies in Hongkong. M: Yes, Hongkong had 9,151 personal bankruptcies last year, about double tile prior year's total. Q: How many personal bankruptcies were there in Hongkong last year?
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 In the United States, the creation of money and other functions associated with a central bank are controlled by file Federal System. In 1913, Congress passed the Federal Reserve Act, dividing the country into 12 districts with a Federal Reserve Bank in each. These banks in fact constitute a central banking system, which handles transactions, coordinates and controls commercial banks, and helps regulate the nation's money supply. There are. three major types of banks in the United States--savings banks, investment hanks, and the commercial banks. There are also other types of banks, which are distinguished by the nature of their services or by the uniqueness of their organization. These include trust companies, central banks, and government - operated banks. 21. When did the Congress pass the Federal Reserve Act?
2.
A.Savings banks.
B.Investment banks.
C.The commercial banks.
D.Saving banks, investment banks and tile commercial banks.
A B C D
D
[解析] What are the three major types of banks in the United States?
3.
A.trust companies, central banks and government - operated banks
[解析] 24-27 Money has become plastic in the age of the credit card, but in an increasing number of countries, cash really is becoming plastic. After more than 300 years in circulation, the traditional paper banknote is gradually being replaced by new polymer technology. Note Printing Australia (NPA), a wholly owned subsidiary of Reserve Bank of Australia, is currently the only company in the world making plastic money, and it is embarking an aggressive strategy to convert more countries to its cause. Mexico will adopt plastic notes later this year. And NPA says a number of Asian countries are also close to agreeing to shift, but declines to reveal which ones. "We think it's not a case of whether the rest of the world will adopt our technology, but when "says NPA chief executive John Leckenby. "But we are dealing with very risk - averse organizations. Central banks are very careful about changing their currency and even a redesign can take seven or eight years or in the United States, 70 years." 24. How long has the traditional paper banknote been in circulation?
2.
A.Mexico.
B.Australia.
C.Japan.
D.China.
A B C D
A
[解析] Which country will adopt plastic notes later this year?
3.
A.Note Printing Australia (NPA) is currently the only company in the world making plastic money.
B.The rest of the world will not adopt plastic notes.
C.Central banks are very careful about changing their currency.
D.A number of Asian countries are close to agreeing to adopt plastic money.
A B C D
B
[解析] Which of the following statements is not true?
4.
A.12
B.11
C.21
D.l8
A B C D
A
[解析] How many districts did the congress divide the country into?
[解析] 28-30 Canada's central bank was created as a result of the Depression. Even though the Canadian chartered bank system was inherently more stable than the US commercial bank system, there was still a need for better monetary leadership. In 1934 Parliament passed the Bank of Canada Act, thereby creating a central bank for Canada. Although a government agency, the Bank of Canada is designed to be fairly free from political interference. The governors of tile Bank of Canada have tried to maintain a tradition of independence. Of course, the government, as the sole shareholder and as the body that is responsible for overall economic policy, has ultimate control over the Bank. There is regular, close consultation between the minister of finance and the governor of the bank, and in case of serious disagreement, it is clearly the minister who holds the upper hand. 28. Which of the following leads to the creation of Canada's central bank?
2.
A.In 1931.
B.In 1913.
C.In 1904.
D.In 1934.
A B C D
D
[解析] When did the parliament pass the Bank of Canada Act?
3.
A.The government has the ultimate control over the bank.
B.There is regular, close consultation between the minister of finance and the governor of the bank.
C.In case of serious disagreement, the governor will hold the upper hand.
D.The governors of the Bank of Canada have tried to maintain a tradition, of independence.
A B C D
C
[解析] Which of the following is not true?
Part Two Reading
Section One Directions: Each of the following sentences is provided with lour choices. Choose the one that best completes the sentence.
1. A loan agreement signed by unauthorized persons could prove to be ______ and, therefore, result in substantial losses for the bank.
A.uncontrollable
B.uncollectable
C.fail
D.bound
A B C D
B
2. Most banks would hesitate to commit their scarce reserves to such a customer unless there was good prospect of a ______ in the customer's circumstances.
A.progress
B.turnaround
C.showoff
D.healing
A B C D
B
3. If a major borrower gets in trouble because of inability to ______ a loan, the bank may find itself in serious trouble as well.
A.service
B.proceed
C.promote
D.return
A B C D
A
4. The collateral pledged behind a loan and the other assets that a borrower may oval are the second line of defense against loan ______ , after the borrower's cash flow.
A.payment
B.defer
C.default
D.repayment
A B C D
C
5. An important technical issue here is whether deeds to property have been properly ______ with local governmental authorities so that the bank knows for sure who' currently has title to the property.
A.filed
B.written
C.filled
D.committed
A B C D
A
6. As the institution's loan losses ______ , wary depositors withdrew funds from Penn Square.
A.increased
B.improved
C.mounted
D.settled
A B C D
C
7. ______ balance sheet items by interest rate sensitivity rather than by traditional accounting categories permits managers to examine several distinct asset/liability groupings.
A.Managing
B.Implementing
C.Formulating
D.Segregating
A B C D
D
8. A ______ foreign exchange deal is one made for settlement in two working days' time.
A.periodic
B.spot
C.one- off
D.short
A B C D
B
9. Attached to each Eurobond are which the bearer can tear off in order to claim the interest payment.
A.tissues
B.coupons
C.documents
D.materials
A B C D
B
10. Some companies, governments and banks have borrowing requirements which are so large that their domestic market cannot ______ them.
A.hold
B.share
C.shoulder
D.accommodate
A B C D
D
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 basic kinds of financial intermediaries that play active roles in the U.S. financial system are shown below. First are the depository institutions, which are commercial banks, savings and loan associations (S & Ls), savings banks, and credit unions. These institutions 1 an important role in the channeling of individuals' savings into loans to governments, 2 to businesses, and loans to home mortgages. The second category, contractual savings institutions, is so classified because they involve 3 steady inflows of money. Life insurance companies receive steady inflows in the form of insurance premium payments. 4 , pension funds for both private and government programs receive contributions on a regular 5 . These institutions play an active role in supplying long- term funding by purchasing corporate stocks anti bonds, mortgages, and government securities.
1.
A.play
B.make
C.take
D.have
A B C D
A
2.
A.debt
B.claims
C.loans
D.funds
A B C D
C
3.
A.extremely
B.relatively
C.particularly
D.definitely
A B C D
B
4.
A.Nevertheless
B.However
C.Likewise
D.Although
A B C D
C
5.
A.basis
B.condition
C.circumstance
D.footing
A B C D
A
Passage Two Investment institutions 1 the third major category in our financial system. These institutions combine the relatively small amounts of savings from many individuals and invest the 2 in financial assets. Mutual founds purchase corporate stocks and bonds as well as government securities. Real estate investment trusts invest in 3 and mortgages. Money market funds invest in short - term debt securities. While individual investors can invest directly in such securities, investment institutions 4 small investors diversification and experienced management of their funds. The fourth category consists of financial companies. These companies provide loans directly to consumers and businesses. Sales and consumer finance companies lend to individuals. Sales finance companies finance installment loan purchases of automobiles and other 5 goods. Consumer finance companies provide small loans to individuals and households. The fifth category consists of securities market institutions that are involved in the savings - investment process and the marketing and transferring of claims to wealth. Credit - reporting and credit - rating organizations aid lenders in deciding whether to extend credit to consumers and businesses.
1.
A.found
B.set up
C.establish
D.make up
A B C D
D
2.
A.money
B.total
C.final
D.amount
A B C D
B
3.
A.stocks
B.property
C.asset
D.houses
A B C D
B
4.
A.offer
B.provide
C.produce
D.deliver
A B C D
A
5.
A.tangible
B.family
C.industrial
D.durable
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 Financial institutions, including designated foreign exchange banks, must be, licensed by the State Administration of Foreign Exchange (SAFE) for conducting foreign exchange transactions. The authorized financial institutions shall open foreign exchange accounts for their clients and conduct relevant foreign exchange operations. They are subject to the reserve requirement for foreign exchange in accordance with the relevant state regulations, compliance with the regulations on asset and liability ratios concerning their foreign exchange operations and loan loss provision. Designated foreign exchange banks shall use their own funds with respect to the Renminbi funds required to carry out foreign exchange surrender business. The foreign exchange operations by financial institutions are subject to inspection and supervision by the SAFE. Financial institutions undertaking foreign exchange operations shall submit to the SAFE their balance sheets, profit and loss statements and other financial and accounting statements and other information with respect to foreign exchange operations. Financial institutions shall file application with the SAFE for the time of the termination of foreign exchange operations. Once the termination is approved, these financial institutions shall liquidate their foreign exchange claims and liabilities and have their license for foreign exchange operations revoked.
1. Designated foreign exchange banks shall use their own funds other than Renminbi fun& to conduct foreign exchange surrender business.
A.Right
B.Wrong
C.Doesn't say
A B C
B
2. Financial institutions dealing in foreign exchange business shall present to the SAFE their balance sheets, profit and loss statements and other statements or information covering foreign exchange operations.
A.Right
B.Wrong
C.Doesn't say
A B C
A
3. Once the termination is approved, these financial institutions shall dispose their foreign exchange assets and liabilities and have their license maintained.
A.Right
B.Wrong
C.Doesn't say
A B C
B
Passage Two The state adopts a registration system for external debt, enabling up - to - date information on the country's external debt to be collected exactly and completely so as to effectively control the size of external borrowing, raise the efficiency of using foreign funds and expedite national economic growth. All domestic entities are required to register their external debts in accordance with the regulations formulated by the State Council on monitoring statistics of external debt. The SAFE shall take the responsibility for the nationwide collection and monitor of data on external debts and shall publish these data on a regular basis. The registration of external debt may be performed on a case- by - case basis or periodically. The registration certificate for external debt shall be formulated, signed and issued by the SAFE. Debtors are required to open external debt accounts with the Bank of China or other banks authorized by the SAFE for transferring their external loan from other countries to China against the Registration Certificate of External Debts. Debtors With approval to keep their external loan proceeds abroad and those whose loans do not have to be transferred to China are required to open debt service accounts, presenting their registration for external debt. Once debtors fully clear their external debts as recorded in the Registration Certificate of External Debt, banks shall cancel the external debt accounts or the debt service accounts. The debtors ip turn are required to submit their Registration Certificate of External Debt to the SAFE within 15 days.
1. The state adopts a registration system for external debt to effectively control the size of foreign borrowing and raise the efficiency of using foreign funds.
A.Right
B.Wrong
C.Doesn't say
A B C
A
2. The data on external debts are not to be revealed to the public.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. After debtors fully clear their foreign debts, they are required to retain their external debt accounts for future use.
A.Right
B.Wrong
C.Doesn't say
A B C
B
Passage Three Asset quality is the most important factor in determining a bank's creditworthiness. Asset quality directly affects the provisioning decisions which largely determine the level of profits. In turn, the profit stream Will affect capital ratios mad the solvency or otherwise of each bank. Asset quality and adequacy of provisions are therefore the major areas to which banking supervisors should pay particular attention. They need to be fully aware of the asset quality of individual banks and to be satisfied that adequate provisions have been maintained for problem assets. For the purposes of monitoring bank's asset quality and assessing its adequacy of bad debt provisions, various banking regulatory bodies in countries/regions such as Singapore, Malaysia, Korea, Hong Kong, the Philippines, Indonesia and Australia have adopted some form of risk - based loan/asset classification system. Most of such systems are modeled after the system adopted by the supervisory authorities of the United States. Under the loan classification system, criteria used to assign credit quality ratings are primarily based upon the degree of risk and the likelihood of orderly repayment, and their effect on a bank's safety and soundness.
1. Low asset quality might affect a bank's capital ratio or even lead to the bankruptcy of the bank.
A.Right
B.Wrong
C.Doesn't say
A B C
A
2. It is not necessary for a hank to have adequate provisions as allowance for bad debts.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. Before the United States, some form of risk - based loan/asset classification system was adopted in Singapore to monitor bank's asset quality and assess its adequacy of provisions.
A.Right
B.Wrong
C.Doesn't say
A B C
B
4. Under the loan classification system, standards used to assess credit quality are mainly based on the degree of risk and the possibility of orderly repayment.
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 through the center.
Passage One Types of documentary credit include: payment credit, negotiation credit, acceptance credit, and deferred payment credit, etc. Payment Credit. The meaning of the term "payment" is self- evident. The nominated bank will pay the beneficiary on receipt of the specified documents and on fulfillment of all the terms of credit. Sometimes the issuing bank nominates itself as paying bank, in which case payment will be made on receipt of the correct documents at their counters abroad. On other occasions, usually with confirmed credits, the issuing bank will nominate the advising bank to pay. The term "payment" only applies to sight drafts, and sometimes, fixed time drafts (deferred payment ). Negotiation Credit. Sometimes the issuing bank will nominated the advising bank to negotiate a credit, or it may even make the credit freely negotiable, in which case any bank is a nominated bank. If a bank negotiates a credit, it will advance money to the beneficiary on presentation of the required documents and will charge interest on the advance from the date of the advance until such time as it receives reimbursement from the issuing bank. Such negotiation advances are said to be with recourse, so that if payment is not ultimately forthcoming from the issuing bank, the negotiating bank will be able to claim repayment from the beneficiary of the advance, plus interest. If the negotiating bank has confirmed the credit, then the advance will be on a "without recourse" basis, provided the terms of the credit have been complied with.
1. Under payment credit, the nominated bank ______.
A.will pay the beneficiary unconditionally
B.will pay the beneficiary after checking that the received documents meet the credit requirements
C.remit the funds to the beneficiary only on receipt of the time draft
D.is nominated by any bank
A B C D
B
2. Under negotiation credit, the credit ______.
A.is always negotiated through the advising bank
B.is sometimes negotiated through the advising bank
C.can always be, negotiated through any bank
D.None of the above is tree.
A B C D
B
3. If a bank negotiates a credit, it will ______.
A.advance money to the beneficiary without charging any interest
B.advance money to the beneficiary only against sight draft
C.always advance money to the beneficiary without recourse
D.advance money to the beneficiary with recourse provided that the credit is not confirmed by it
A B C D
D
4. A credit can be negotiated by ______.
A.the importer
B.the beneficiary
C.the advising bank
D.the applicant of the credit or the advising bank
A B C D
C
5. If the negotiating bank has negotiated a credit confirmed by itself, it will ______.
A.be able to claim repayment from the beneficiary of the advance which is not ultimately forthcoming from the issuing bank
B.not be able to claim repayment from the beneficiary of the advance which is not ultimately forthcoming from the issuing trunk, provided the terms of the credit have been complied with
C.be able to claim repayment from the beneficiary of the interest which is net ultimately forthcoming from the issuing bank
D.not be able to obtain reimbursement from file issuing bank
A B C D
B
Passage Two Insurance of goods is a matter for negotiation between the exporter and the importer as to who is responsible the insuring file goods during their journey from the exporter's hands to the importer's hands. In some transactions, it may be agreed that the seller will insure the whole journey and in others it may be on the buyer, it is also possible for the agreement to say that the seller must cover part of the journey, and the buyer must cover the rest. For the moment let us consider the position of an exporter who is responsible for insurance of goods. When gm exporter sells goods on a regular basis, he will normally arrange an open policy of insurance to cover all his exports during a specific period. This provides insurance cover at all times within agreed terms and conditions. Each time a shipment is made, the exporter will declare the details and pay a premium to the insurer. A certificate of insurance is then issued by the exporter who sends one copy to the insurance company for their record. The benefit to the open cover system is that it avoids the need to negotiate insurance terms each time a shipment is made, and it avoids the necessity of issuing a separate policy for each individual shipment. If an exporter sells goods on a one- off basis, then he will negotiate terms with the insurers and an insurance policy will be issued. In many countries, an insured person must have a policy before he can take legal action against an insurer. A certificate alone is insufficient evidence on which to base a legal action. This legal problem is only important if tire buyer needs to go to court because the insurance company has challenged a claim.
1. During the journey from the exporter to the importer, ______ is responsible for insuring the goods.
A.the importer
B.the exporter
C.either the importer or fire exporter
D.None of the above.
A B C D
D
2. When an exporter sells goods on a regular basis, he will normally arrange an open policy of insurance to cover 'all his exports during a specific period. Here an "open policy" means ______.
A.a policy which is free from limitations.
B.a policy that is accessible to all.
C.a kind of insurance certificate which provides insurance cover at all times within agreed terms anti conditions.
D.None of the above.
A B C D
C
3. Which of the following statements is true. The benefit of the open cover system is that ______.
A.it avoids to negotiate insurance terms
B.it avoids tire necessity of issuing a separate policy for each individual shipment
C.it provides insurance cover to all kinds of goods
D.it avoids the necessity of issuing an insurance certificate
A B C D
B
4. The sentence "if' an exporter sells goods on a one - off basis" means ______.
A."if an exporter sells goods regularly"
B."if an exporter sells goods irregularly"
C."if an exporter sells goods for only once and will never sell goods again"
D.None of the above are correct.
A B C D
B
5. In many countries, before an insured person can take legal action against an insurer, he ______.
A.must present an insurance certificate
B.must present a plan
C.must present no other documents than an insurance certificate
D.must present an open policy
A B C D
A
Passage Three Basically, there are three primary financial statements for the financial accounting: Balance Sheet, Income Statement and Statement of Cash Flow. Balance Sheet The balance sheet is divided into three, sections: assets, liabilities and owner's equity. The first section identifies the types of assets owned by a firm and amounts paid for those assets. The liability section informs readers of the extent and nature of a firm's borrowings, and provides a measure of its financial stability. This section, together with owner's equity, indicates how an entity is financed (whether by borrowings or by owner's contribution). Financially, the owner's equity section completes the balance sheet by identifying the portion of a firm's resources that were contributed by owner and the amount of undistributed earnings ( retained earnings) a firm has had since inception. Income Statement The income statement provides a measure of the success or failure of an enterprise over a specific period of time. It shows the major sources of revenues generated mid the expenses associated with those revenues. It matches efforts against accomplishments over a period of operating activity mid helps external users evaluate the earnings potential of a company. Alternative titles for die income statement include earnings statement, statement of operation, mid profit and loss statement. In brief, we can say that an income statement is used to summarize the operation results of a business by matching the revenue earned during a given time period with the expenses incurred in obtaining that revenue. Statement of Cash Flow The statement of changes in financial position usually is designed to explain the changes in working capital, which occurred during the period. However, it may be designed to explain the changes in cash. if' it is, the descriptive phrases used in the statement should clearly state that the statement is constructed to explain cash flow. One of the mast important phrases of managements work is to manage a company's money, so that adequate cash is available to meet liabilities, pay dividends, and so on. Also, surplus amounts of money should be kept invested in assets which will contribute income to the company. Therefore, the management of a company will often require cash flow statements to assist in planning and controlling the cash flows of the company.
1. The owner's equity is ______.
A.the money paid by the owners at inception of a firm
B.net worth of a firm
C.gross profit of a firm
D.the rest resources aside from liabilities
A B C D
D
2. The balance sheet ______.
A.provides a measure of the success or failure of an enterprise over a specified period of time
B.shows the changes of working capital during a specific time period
C.shows the relationship among assets, liabilities and owner's equities
D.None of the above.
A B C D
C
3. Which of the following is not the alternative title of income statement?
A.Statement of Cash Flow.
B.Profit and Loss Statement.
C.Earnings Statement.
D.Statement of Operation.
A B C D
A
4. An income statements ______.
A.states only income
B.shows the major resources of revenues generated
C.shows the major resources of expenses associated with the revenues
D.Both B and C
A B C D
D
5. Statement of Cash Flow ______.
A.shows the relationship between cash and cost
B.explain the changes in working capital or cash
C.shows the relationship among assets, liabilities and owner's equities
D.states the income in terms of cash
A B C D
B
Passage Four For a great variety of reasons, individuals or corporations may desire a reliable outside entity to administer their assets. To meet this need, and to attract large depositors, banks offer trust services. As wealth in China has increased, the need for trust services has grown. Management of trusts involves both investing the funds for growth and carrying out specific instructions regarding them. To better understand the trust services banks offer, we should first understand what trust is. legally speaking, trust is a fiduciary relationship in which one person is trusted by the holder of the legal title to property, subject to an equitable obligation to keep or use the property for the benefit of tile holder or a designated party. In early times trusts had for their purpose the preservation of property ill order that favored individuals or institutions might benefit from the income from the principal of the trusts or come into the possession of the principal itself. In the establishment of a trust, there are primarily three principal parties involved: · The trustor, or party creates the trust, who is also known as the settlor, grantor, or donor. · The beneficiary, an individual or charitable organization, for whose benefit the fired is established. A beneficiary may have an interest in trust income, corpus or both; and a present interest, commencing with the trust's creation, or a future interest, commencing when a specified event occurs, or both; and · The trustee, who is charged with the management and preservation of the property that constitutes the trust estate. It can also be one or more ,individuals, or an organization (e. g. a bank) who holds legal title to property placed in trust and is responsible for administering the property for the benefit of the trust beneficiary or beneficiaries. Among the various types of trusts in terms of provisions affecting distribution to the beneficiaries are the following: Trust Deposits are deposits that are made by one person as trustee for the other person. Such deposits me made under trustee account agreements executed in advance and are subject to the terms and conditions of the agreements. Despite the usual previsions in such agreements for discharging ,ff the bank for withdrawals by the trustee where a trustee has both a personal account and a trustee account in the bank, the hank might become subject to constructive notice and inquiry in cases of loss to beneficiaries through steady and large withdrawals from the trustee account to personal account.
1. In the establishment of a trust, there are primarily ______.
A.three principal parties involved: trustor, trustee and grantor
B.three principal parties involved: settlor, trustee and grantor
C.three principal parties involved: trustor, donor and grantor
D.three principal parties involved: settlor, trustee and beneficiary
A B C D
D
2. The party who creates the trust is ______.
A.the trustee
B.the beneficiary
C.trustor
D.None of the above is correct.
A B C D
C
3. None of the following statements is true except ______.
A.the trustor is responsible for administering the property for the benefit of the trustee only
B.the trustee is responsible for administering the property for the benefit of tile trustor ouly
C.the trustee is responsible for administering the property for the benefit of the beneficiary or beneficiaries
D.the trustor is responsible for administering the property for the benefit of the trustee or a designated party
A B C D
C
4. Trust Deposits are made under trustee account agreements ______.
A.signed in advance
B.fulfilled in advance
C.drafted in advance
D.signed and fulfilled in advance
A B C D
A
5. For withdrawals by the trustee where a trustee has both a personal account and a trustee account in the bank.
A.the bank is not subject to inquiry in cases of loss to beneficiaries through steady and large withdrawals from the trustee account to personal account
B.the bank is always subject to inquiry in cases of loss to beneficiaries through steady and large withdrawals from the trustee account to personal account
C.the bank might become subject to inquiry in cases of loss to beneficiaries through steady and large withdrawals from the trustee account to personal account
D.the trustor might become subject to inquiry in cases of loss to beneficiaries through steady and large withdrawals from the trustee account to personal account.
A B C D
C
Part Three Writing
Section One Directions: Describe the procedures of settlement by payment credit according to the number order in the following charter. Write your answer on the ANSWER SHEET:
1.
① Documents: The seller sends the documents to the bank where the Credit is available. ② Money: After checking that the documents meet the Credit. requirements, the bank makes payment. ③ Documents: This bank then sends the documents to the issuing bank. ④ Reimbursement: The issuing bank, after checking that the documents meet the Credit requirements, makes reimbursement. ⑤ Documents: The issuing bank then sends the documents to the Buyer. ⑥ Reimbursement: Reimbursement is obtained in the pre - agreed manner.
Section Two Directions: Translate tile following sentences into Chinese. Write your translation on the ANSWER SHEET.
1. This law has strengthened the PBC independence by prohibiting its financing of fiscal deficits and interference in the performance of its functions by any government agency, non -government organization or individual.
Your Unused Checks No. 87762 & No. 87763 for Closing Your A/C Reference is made to your captioned checks.
According to our regulations, our customers should return all the unused blank checks to us for cancellation before closing their checking accounts in our books. We shall appreciate it if you will send back to us the above mentioned unused checks so that we can remit the credit balance on your account to your account with ABC Bank, New York. We thank you for your cooperation.
Yours faithfully, ××× Manager Bank of China Beijing Branch