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 the best answer. Then mark the corresponding letter on the ANSWER SHEET with a single line through the center.
[解析] He said he had forgotten the code of his safe.
7.
A.In the U.S., the Federal Gold Reserve acts as the central bank.
B.In the U.S., tile central bank is the commercial bank.
C.In the U.S., there is no central bank.
D.In the U.S., the central bank is not so important.
A B C D
A
[解析] In the United States, the Federal Gold Reserve acts as the central bank.
8.
A.Don't change your ideas.
B.Don't change the accounts.
C.Don't leave the bank.
D.Don't forget to take your change.
A B C D
D
[解析] Don't leave your change on the counter.
9.
A.Barter trade was very important.
B.Barter trade was not the original form.
C.Money was very important.
D.Barter Trade was the original form of international transaction.
A B C D
D
[解析] Barter trade was tile original form of the international transaction.
10.
A.If you lose your bank notes, you will not get them back.
B.If you lose your bank notes, you will get compensation.
C.If you lose your bank notes, you can get them back soon.
D.If you lose your bank notes, most probably, you will not get them back.
A B C D
D
[解析] If you lose your bank notes, the chance for you to get them back is not high.
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.
A.You must report the loss of your card immediately to the bank.
B.You will be scolded.
C.You must give a new card to the hank.
D.You must pay for tile new card.
A B C D
A
[解析] W: What if I lost the card? M: That's simple. You must report the loss of your card immediately to the bank and later you will be given a new card. Q: What can I do if I lost my card?
2.
A.Checks.
B.Traveler's cheeks.
C.Travelers' letters of credit.
D.Securities.
A B C D
D
[解析] W: How many kinds of clean drafts are there? M: There are usually three kinds of clean drafts such ag checks, traveler's cheeks, and traveler's letters of credit. Q: Which of the following is not among the three kinds of clean drafts?
3.
A.The third bank is the issuing bank.
B.The third bank is not the confirming bank.
C.The letter of credit should be confirmed by the third bank.
D.The letter of credit should be confirmed by the issuing bank.
A B C D
C
[解析] W: Why should a third bank be involved, and what's the use of the third bank? M: Well to be brief, this concerns the credit standing of the bank; here it refers to the issuing bank. Q: What's the use of the third bank?
4.
A.The beneficiary doesn't want to carry the money with himself.
B.The beneficiary does so for the sake of safety.
C.The beneficiary does so for the sake of convenience.
D.The beneficiary doesn't want to pay the money.
A B C D
D
[解析] W: Why shouldn't the beneficiary carry the money with himself? M: Chiefly for safety and for conveniences. You see it would be unsafe to carry a large sum of money with you. Q: Which of the following is not true?
5.
A.In order to avoid problems arising from fluctuations of exchange rate.
B.In order to get more money.
C.In order to use the money as soon as possible.
D.In order to overdraw the money.
A B C D
A
[解析] W: Why should the money be, deposited within such a short time? M: To avoid problems arising from fluctuations of exchange rate and to prevent possible fraud or overdrawing. Q: Why should the money be deposited within such a short time?
[解析] W: Do you know which country is that company registered in? M: In Australia. Q: Which country is that company registered in?
7.
A.I won't advertise.
B.I don't want to report to the police station.
C.I will be worded about this.
D.I'll advertise or report to the police station.
A B C D
D
[解析] W: What do you do when you lose your money? M: I'm afraid I'll have to report to the police station. Q: What will the man do if he loses his money?
8.
A.Three - month.
B.Six - month.
C.15 days.
D.Twelve - month.
A B C D
C
[解析] W: How long do I have to keep the money in the account? M: We offer a choice of three -, six - , or twelve - month maturities in most cases. Q: Which of the following is not the choice of the time you keep the money in the account?
9.
A.RMB.
B.Hongkong Dollar.
C.Dollar.
D.Franc.
A B C D
B
[解析] W: What is the name of currency of Hongkong? M: Hongkong Dollar. Q: What is the name of currency of Hongkong?
10.
A.The government.
B.The banks.
C.The leaders.
D.The fund authorities.
A B C D
D
[解析] W: The quota is the heart of the International Monetary Fund. But who set the size of the quota? M: The fund authorities set the size of the quota. Q: Who set the size of the quota?
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 an tile ANSWER SHEET with a single line through the center.
[解析] 21-23 The State Development Bank was established on March 17, 1994, with its headquarters in Beijing. Its assets totaled RMB 280 billion yuan at the end of 1996. This bank is responsible for financing key state construction projects and for macro - adjustment of the structure of the lending facilities. Its tasks include creating a stable and long -term source of financing through mobilizing financial resources in the economy so as to meet the needs of priority construction projects; providing policy-related credit and interest subsidies to priority projects; improving investment efficiency by adjusting the structure of fixed - asset investment. The potential recipients of its credit are mainly those large projects that are designed to alleviate the bottlenecks in the economy, operate in the leading industries or extend file application of advanced technology as well as those inter - regional policy- based projects. 21. When was the State Development Bank established?
2.
A.280 million
B.180 million
C.280 billion
D.180 billion
A B C D
C
[解析] How much were its total assets at the end of 1996?
3.
A.small projects
B.financing key state construction projects
C.hope projects
D.private projects
A B C D
B
[解析] Besides macro - adjustment of the structure of the lending facilities, what is the State Development Bank responsible for?
[解析] 24-27 In the United States, even if you decide that you do not want to borrow in order to go on vacation, it is still a good idea for you m have several major credit cards. These provide positive identification when renting an automobile and can be, used for the deposit. The credit card receipts will serve as an accurate' record of all hotel, plane, train, and restaurant expenses. The use of credit cards avoids the necessity of carrying large amount of cash, purchasing large amounts of traveler's checks and keeping track of them, or attempting to use personal checks in places other than your own locality. Many major credit cards provide an instant cash service in case you nm out of money. American Express, for example, has set up machines in major airports in which you can purchase traveler's chocks using your American Express card. 24. The credit card receipts will serve as accurate record for all but which of the following choices?
2.
A.It can avoid the necessity of carrying large amount of cash.
B.You needn't purchase large amounts of traveler's checks.
C.You needn't use personal checks in places other than your own locality.
D.It can't provide an instant cash service in case you run out of money.
A B C D
D
[解析] Which of the following is not true about the use of credit card?
3.
A.very useful and convenient
B.useless
C.a waste of' money
D.not popular
A B C D
A
[解析] Concerning the advantages of credit cards, which of the following is true?
4.
A.American Express
B.Chinese Peony Cant
C.Dragon Card
D.Credit Card
A B C D
A
[解析] According to the passage, which card has set up machines in major airports?
B.No investment is worth keeping if it robs of your sleep.
C.If you need the money today, you should have sold the stocks now.
D.It is easy to be brave and keep buying during a bull -market.
A B C D
C
[解析] 28-30 For investors wondering whether they should dump their stocks because they need the money, I have only this to say: if you need the money today, you should have sold years ago. That advice holds true whether the market is up or down. Even though a lot of novice investors claim they are in stocks "for the long haul", that often turns out to be nonsense. It is easy to be brave and keep buying during a bull market. But what if we're in for mediocre stocks market gains for the next 10 years? For some people, drops as steep as we've seen in Asian markets in recent months are too much to take physically. I'm a big believer in the sleep - at - night theory. No investment is worth keeping if it robs of your sleep. If you can't stomach 50 percent losses in your stock portfolio, get out now and save yourself a heart attack. You may not buy that mansion in Spain, but you'll live to see your granddaughter's graduation. 28. Which of the following is not true?
2.
A.50
B.15
C.60
D.70
A B C D
A
[解析] How many percent losses should you stomach if you want to invest in stocks?
3.
A.You can live a happy life.
B.Though you are not rich, you can enjoy a long and happy life.
C.You can have a big mansion in Spain.
D.You can live to see your granddaughter's graduation.
A B C D
B
[解析] What's the meaning of last sentence: You may not buy that mansion in Spain, but you will live to see your granddaughter's graduation?
Part Two Reading
Section One Directions: Each of the following sentences is provided with four choices. Choose the one that best completes tile sentence.
1. The 40 per cent is tax deductible, suggesting that the provision was made simply to take advantage of this tax ______.
A.concession
B.compromise
C.accommodation
D.renewal
A B C D
A
2. Under normal circumstances, the auditor's first step would be to alert the client's management to the existence of ______.
A.mistake
B.fraudulent
C.fraud
D.misstatement
A B C D
C
3. Alerting the authorities would be justified if tile fraud is likely to result in a ______ gain or loss for any one person or group of people.
A.magnificent
B.material
C.great
D.superficial
A B C D
B
4. In the US and most other countries, the corporate form of organization is the most important in terms of dollar value of assets ______.
A.owed
B.owned
C.outstanding
D.balance
A B C D
B
5. The larger a corporation's taxable income, the closer its average tax rate comes to the higher ______ pate.
A.marginal
B.interest
C.exchange
D.ceiling
A B C D
A
6. Countries like the UK, wishing to maintain their own attractions, may well push their own rates lower, ______ further rounds of tax cutting.
A.instigating
B.augmenting
C.sparking
D.integrating
A B C D
C
7. The fact that interest ______ are tax deductible while dividends are not is a major consideration in the financial structure of an overseas subsidiary.
A.rates
B.earnings
C.inputs
D.charges
A B C D
D
8. Companies measure the performance of their brands internally and decide how to ______.resources from one brand to another.
A.allocate
B.translate
C.transfer
D.retain
A B C D
A
9. Expenditure may be seen as no more than an ______ of forecast profits.
A.allocation
B.appropriation
C.income
D.expanding
A B C D
B
10. Ten months later, before a company can produce another annual report, it goes ______.
A.wrong
B.down
C.void
D.bust
A B C D
D
Section Two Directions: There are a number of blanks in each of tile 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 Foreign exchange markets are electronic communication systems that 1 major financial centers throughout the world. Exchange rates are determined 2 supply and demand relationships, relative interest rate levels, relative 3 of inflation, political risk, and economic risk. Alternatives 4 affecting settlement of purchase and sales claims were explored 5 with the instruments available to exporters and importers for financing their international activities.
1.
A.focus
B.liaison
C.connect
D.associate
A B C D
C
2.
A.with
B.by
C.in
D.through
A B C D
B
3.
A.level
B.condition
C.rates
D.risk
A B C D
C
4.
A.in
B.to
C.about
D.on
A B C D
B
5.
A.together
B.along
C.following
D.going
A B C D
B
Passage Two Nations of the world try to maintain a 1 in their exchange of goods and services, as well as in their payments balances. When international financial equilibrium does not 2 , exchange rates usually adjust to reflect these imbalances. 3 , when the current account shows a surplus or deficit in the flow of income into and out of the United States, changes in the capital 4 must offset the current account imbalance. This is accomplished by a change in the relationship between foreign private and government investment in the United States 5 to U.S. investment in foreign countries.
1.
A.balance
B.equilibrium
C.clearance
D.equality
A B C D
A
2.
A.establish
B.appear
C.happen
D.exist
A B C D
D
3.
A.On the contrary
B.Nevertheless
C.However
D.Furthermore
A B C D
D
4.
A.deposit
B.account
C.expense
D.expenditure
A B C D
B
5.
A.relative
B.contrary to
C.in addition
D.adding up
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 A promissory note is an unconditional promise in writing made by one person (the maker) to another (the payee or the holder) 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 is a promise, a bill is an order. There is no need to protest a dishonored note. And as the maker of a promissory note is the person primarily liable on it, there can be no acceptance.
1. The maker of a promissory note premises to pay the holder at a future date on some conditions.
A.Right
B.Wrong
C.Doesn't say
A B C
B
2. A promissory note is the same as a bill.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. If a promissory note is not paid on time, it cannot be protested.
A.Right
B.Wrong
C.Doesn't say
A B C
A
Passage Two Open account is an arrangement between the buyer and the seller whereby the goods are manufactured and delivered before payment is required. Open account provides for payment at some stated specific future date and without the buyer issuing any negotiable instrument evidencing his legal commitment. The seller must have absolute trust that he will be paid at the agreed date. The seller should recognize that in certain instances it is possible to discount open accounts receivable with a financial institution.
1. Through open account, the seller will. manufacture goods before payment is required.
A.Right
B.Wrong
C.Doesn't say
A B C
A
2. The buyer has to prove his promise in an open account.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. The seller in an open account must know that in some circumstances he can present open account receivable to a law institution for acceptance.
A.Right
B.Wrong
C.Doesn't say
A B C
B
Passage Three Investment banking is a highly specialized segment of the finance industry. Its basic function is to bring together, directly through the mechanism of financial markets, ultimate savers and savings - collecting institutions with those wishing to raise additional funds for investment or consumption. It also facilitates holders of accumulated wealth, held in the form of financial instruments, to reallocate their assets using financial markets in accordance with their changing evaluation of the attraction of the combination of risk/rewards/liquidity attributes of individual financial assets, compared with each other and with real assets. In performing these two basic functions those involved in investment banking act as market intermediaries. Investment banks must be distinguished from commercial banks and other savings - collecting institutions who gather and decide themselves on the allocation of savings and who act as financial intermediaries. The use of financial markets is thus at the heart of investment banking. Its development and evolution have been closely linked to the growth and expansion of financial markets (and above all capital markets), the instruments they employ and the mechanisms they use.
1. Investment banks perform the functions of market intermediaries.
A.Right
B.Wrong
C.Doesn't say
A B C
A
2. Investment banks are more or less the same as the commercial banks and other savings - collecting institutions.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. Investment banking helps the holders of the accumulated wealth who wish to re - allocate their assets in the financial markets.
A.Right
B.Wrong
C.Doesn't say
A B C
A
4. The development of investment banking has a lot to do with the capital markets.
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 A standby letter of credit, like a commercial letter of credit, is a promise by the issuer to honor the beneficiary's presentation of the document or documents specified in the letter of credit. The standby letter of credit, however, is not typically used as a payment mechanism. In a standby letter of credit, the parties do not normally expect that the presentation of documents will occur. The issuer is merely "standing by", just in case the obligation in the underlying transaction is not performed by the obligor. The documents presented to the issuer under a standby letter of credit are typically very different from the documents presented under a commercial letter of credit. Documents presented under a commercial letter of credit are invoices, transport documents, insurance documents, weight certificates, packing lists, and other documents customarily delivered in transaction for the sale of goods. The documents presented under a standby letter of credit, by contrast, usually indicate in a relatively perfunctory manner that the applicant has defaulted in its obligations to the beneficiary. Standby letters of credit can be used to provide payment in lieu of the performance of nonmonetary obligations as well as to assure the payment of monetary obligations. A standby letter of credit anticipates the possibility that something will go wrong or a negative event will occur. A commercial letter of credit, by contrast, is a method of payment that anticipates a positive event, the consummation of the underlying transaction. Thus commercial letters of credit are a means of implementing the performance of the buyer and the seller while standby credits envision the possibility of non - performance by the applicant in the underlying transaction. The positions of the parties could be reversed. The contractor might be the party seeking assurance under a standby letter of credit of the payment of the construction price. Standby letters of credit have been used for a wide variety of purposes and are available for use in virtually all circumstances in which the applicant owes a payment or performance obligation to the beneficiary.
1. A standby letter of credit ______.
A.is a promise by the importer to honor the beneficiary's presentation of the documents
B.is never used as a payment mechanism
C.is used when the obligation in the underlying transaction is not performed by the obligor
D.can not be used to assure the performance of non - monetary obligations
A B C D
C
2. Documents presented to the bank under a commercial letter of credit may include all of the following except ______.
A.invoices
B.insurance documents
C.packing lists
D.a document certifying that "the borrower is in default"
A B C D
D
3. Which of the following statements is not true?
A.A commercial letter of credit is a promise by the issuer to honor the beneficiary's presentation of documents specified in the lencr of credit.
B.Normally, the presentation of documents will not occur in a standby letter of credit.
C.With standby letter of credits, the issuer, after checking that the shipping documents meet the terms and conditions of' the credit, will make payment to the beneficiary.
D.Standby letter of credit can be used in virtually all circumstances.
A B C D
C
4. A commercial letter of credit is used when ______.
A.the underlying transaction is consummated by the applicant
B.the underlying transaction is not performed by the applicant
C.something will go wrong or a negative event will occur
D.it is necessary to assure the performance of non - monetary obligations
A B C D
A
5. Standby letters of credit can ______.
A.only be used to provide payment
B.be used to provide payment
C.be used when the exporter has delivered the goods to the beneficiary
D.be used when a positive event has occurred
A B C D
B
Passage Two A syndicated loan is a loan arranged by a lead bank between a borrower, itself, and a group of other banks that are parties to the original credit agreement. These syndicated banks share credit information and credit risk. A syndicated loan is a large credit, generally more than USD10 million, negotiated between a borrower and a single bank, but actually funded by several other banks. The negotiating or "lead" bank has often won the "mandate" from a number of competitors and has often underwritten a large portion of the credit and is responsible for organizing the syndication. The resulting credit is governed by a single loan agreement signed by the borrower and all of the banks involved. The syndication market has developed largely because single lenders have found it increasingly difficult to meet large borrowing requirements of corporate clients. A single bank may not be able or willing to extend such a large amount because of legal lending limits, exposure, and portfolio considerations. Also, the lead bank often chooses to allow room in its credit availability for future funding opportunities to the same borrower. Every syndication has an agent bank to administer the loans from signing to repayment. Based on the complexity of its duties, the agent bank normally receives a fee from the borrower. This fee is separate and distinct from any front end or other fee paid to the bank. Duties of the agent include issuing advices for interest charges, processing the movement of funds, and assuring that the borrower has complied with the terms and conditions of the loan agreement. The purpose of the syndicated loan is usually to finance a major development, a project, a temporary imbalance of payments, a major capital investment program, a project cost over- run, acquisition of a company, short - term to long - term debt conversion, or rationalization of its schedule of lung - term debt repayments.
1. A syndicated loan is a large credit negotiated between ______.
A.a borrower rout several banks
B.banks
C.a borrower and a single bank
D.None of the above is correct.
A B C D
C
2. None of the following statements is true except ______.
A.the lead bank in a syndicated loan is not, allowed to underwrite a large portion of the credit
B.all the banks involved in a syndicated loan must under underwrite a equal portion of the credit
C.the lead bank always underwrites a large portion of the credit
D.the negotiating bank in a syndicated loan is also referred to as the "lead" bank
A B C D
D
3. A single bank may not be able or willing to extend loans of large amount partly because of ______.
A.the lending limits made by the parent of the bank
B.the risks of the large amount loan
C.the fact that its portfolio policy forbids large amount loan
D.the fact it is impossible for a single bank to extend loans of large amount
A B C D
B
4. The purpose of the syndicated loan is usually to provide finance to ______.
A.a house buyer
B.a car buyer
C.a company to meet its temporary needs
D.None of the above is correct.
A B C D
D
5. The agent bank in a syndication loan normally receives a fee ______.
A.which is similar to the front end fee
B.which is from the lead bank
C.which is paid together with front end fee
D.which is paid by the borrower
A B C D
D
Passage Three A foreign exchange transaction may be described as a contract to exchange a bank balance in one currency with a bank in another currency at an agreed rate of exchange at specified point of time; the three main user groups of foreign exchange markets are banks, brokers and customers. Banks participate in the inter - bank market to move large sums of money around. The underlying purpose of these transactions may be to meet some form of customer requirement for currency, perhaps as a result of a trade finance transaction or because the customer wishes to create an investment position or hedge some existing position. For the accounting of foreign exchange, it is necessary to define a few terms as follows: · Natural currency: natural currency is the actual currency of the transaction. · local currency: local currency if the currency in use is in the country of operation. · Foreign currency: Foreign currency is any currency other than local currency in the country of operation. · local currency equivalent: local currency equivalents are any currency translated into the local currency. · Base currency: the base currency is only used for reporting purposes. It may, for example, be the currency of the organization's parent. Two accounting systems can generally be used to account for foreign exchange transactions, namely, the dual currency accounting system and the multiple currency accounting system. In dual currency system, all ledgers are maintained in local currency, with foreign currency transactions being recorded in local currency equivalents. In the multiple currency accounting system, all foreign currency transactions are only in the natural currency, a separate currency ledger being maintained for each currency used. For cross currency transactions, which involve two currencies and therefore two separate ledgers, offset entries are posted to separate control accounts utilized for each currency. This is the most widely used basis for accounting for foreign currencies.
1. If the British branch of an American bank is selling Australian dollars to a German bank, the natural currency is ______.
A.American dollar
B.Australian dollar
C.British Pounds
D.Deutsche Mark
A B C D
B
2. Two accounting systems car generally be used to account for foreign exchange transactions, namely, ______.
A.the single entry system and the double entry system
B.the single entry system and the multiple currency accounting system
C.the double entry system and the multiple currency accounting system
D.None of the above is true.
A B C D
D
3. In dual currency system, all ledgers are maintained ______.
A.in foreign currency, with foreign currency transactions being recorded in local currency equivalents
B.in natural currency, with foreign currency transactions being recorded in local currency equivalents
C.in local currency, with foreign currency transactions being recorded in local currency equivalents
D.in base currency, with foreign currency transactions being recorded in local currency equivalents
A B C D
C
4. If the British branch of an American bank is selling Australian dollars to a German hank, local currency equivalent is ______.
A.Australian dollars expressed as British Pounds.
B.Australian dollars expressed as American dollars.
C.British Pounds expressed as Australian dollars.
D.American dollars expressed as Australian dollars.
A B C D
A
5. In the multiple currency accounting system, all foreign currency transactions are. only in ______.
A.local currency, and a separate entry being maintained for each currency used
B.natural currency, and a separate currency ledger being maintained for each currency used
C.base currency, and a double entry being maintained for each currency used
D.foreign currency, and a separate currency ledger being maintained for each currency used
A B C D
B
Passage Four A bank has different kinds of securities as cover for advance to its customers. There are several ways in which a bank may take security for an advance by lien, pledge, mortgage and hypothecation. In the case of an ordinary lien, the borrower is still the owner of the property, but the creditor (bank) is in actual or constructive possession of the property, without as a rule having a right to sell it. The securities subject to the bank's lien are those which come into a bank's hands in tile ordinary course of its business, for example, bills, cheques and other negotiable instruments deposited with the bank in order that it may collect tile proceeds. Hedge is the characteristic model of taking goods as security. It arises when goods (or documents of title thereto) or bearer securities are delivered by one person (called the "pledgor") to another person ( called the "pledgee" ) to be held as a security for the payment of a debt or for the discharge of some other obligation, upon the express or implied undertaking that the subject matter of the pledge is to be restored to the pledgee as soon as the debt or other obligation is discharged. The pledgee is entitled to the exclusive possession of the property until the debt is discharged, and the pledgee, in certain circmnstances, has the power of sale, but the ownership remains in the pledgor, subject to the pledgee's right. Securities subject to pledge are goods and chattel and fully negotiable securities. Delivery of possession may be either actual or constructive. Essentially, mortgage is an assignment or charge of some interest in land or other property, as security for the payment of a debt or the discharge of some obligation for which it is given subject to a right of redemption (or equity of redemption), discharge of the obligation the interest conveyed (or charged) shall be reconveyed (or discharged). The mortgagee has a special interest in the property, and also a power of sale, but the possession of the property usually remains with the mortgagor unless and until there is a default and the mortgagee enters into possession, which is rare, or exercises any of his other remedies. Securities subject to mortgage are title deeds, life policies, and stocks and shares and others chosen in action. Hypothecation is a transaction whereby goods may be made available ms security for a debt without transferring either the property or the possession to the lender. There is risk of lending against the hypothecation of goods. Since the lender does not obtain actual or constructive possession of the goods, his measure of control over them is often very limited, giving the borrower an easy opportunity of dealing with them fraudulently.
1. All of the following statements are tree except ______.
A.there are several ways in which a bank may take security for an advance, they include charge, lien, mortgage and pledge
B.there are several ways in which a hank may take security tbr an advance, they include hypothecation, lien, mortgage and pledge
C.there are several ways in which a bank may take security for an advance, they include charge, lien, mortgage and pawn
D.There are several ways in which a bank may take security for an advance, they include charge, lien,mortgage and credit
A B C D
D
2. In the case of an ordinary lien, ______.
A.the creditor is file owner of the property, so it has a right to sell it
B.the borrower is the owner of the property, but he has no right to sell it
C.the borrower is the owner of the property, and has right to sell it
D.the creditor is not only the owner of the property, but also in actual or constructive possession of the property
A B C D
C
3. In the case of pledge, ______.
A.before the debt is discharged, both the pledgor and the pledgee are entitled to tile possession of tile property
B.before the debt is discharged, the pledgor is entitled to the exclusive possession of the property
C.after the debt is discharged, the pledgee is entitled to the exclusive possession of the property
D.before the debt is discharged, the pledgee is entitled to the exclusive possession of the property
A B C D
D
4. In the case of mortgage, ______.
A.the mortgagee has no power of sale, but the possession of the property usually remains with him unless and until there is a default
B.the mortgagee has a power of sale, and the possession of the property usually remains with him unless and until there is a default
C.the mortgagee has a power of sale, but the possession of the property usually remains with the mortgagor unless and until there is a default
D.the mortgagee has no power of sale, and the possession of the property usually remains with the mortgagor unless and until there is a default
A B C D
C
5. In the case of mortgage, ______.
A.the possession of the property remains with the lender
B.the lender obtains constructive possession of the goods
C.the lender's measure of control over the property is unlimited
D.the possession of the property remains with the borrower
A B C D
D
Part Three Writing
Section One Directions: Describe the procedures of remittance by bank's demand draft (D/D) according to the number order in the following charter. Write your answer on the ANSWER SHEET.
1.
① Application: The remitter applies to the bank for remittance by D/D. ② Issuing Demand Draft: The remitting bank issues the demand draft according to the remitter's instructions. ③ Sending Draft and Advice of Drawing: The remitter sends the draft to the payee and at the same time tile remitting bank sends tile advice of drawing to the paying bank instructing it to make the payment. ④ Presenting the Draft: The payee presents the draft to the paying bank. ⑤ Making Payment: The paying bank pays money to file payee.
Section Two
1. The increasing presence of foreign banks has been an important aspect of banking reform in China. This will help improve the quality of regulation and information disclosure, as it will force the domestic banks to improve their cost structure and the range and quality of their services.
Bank A New York U.S.A Dear Sirs, Your BP No. "' dated'" Our Ref. '" under L/C No... Regarding your letter of May 7, 2003 concerning the delay in reimbursing payment for the captioned bills, we wish to inform you that the time lag between the receipt of documents and reimbursement was caused by the following reasons: 1) We received the documents on April 19 and 20,2003 which were, public holidays in China. 2) Since the transferor ABC Company is not our client, it took more time for us to transfer the documents and message to them through their banker. 3) The L/C required substitution of documents by the transferor which also took longer time. We hope that you will be satisfied with our above explanation.
Yours sincerely, ××× Manager Bank of China Beijing Branch