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 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] As a financial intermediary, the bank lends to those who want to borrow and borrows from those who want to lend.
7.
A.When a bank lends out money, it will not charge any interest to the customer.
B.When a bank lends out money, it will charge interest to the customer.
C.When a bank lends out money, the borrower needn't return the money.
D.When a bank borrows money than those who want to lend, it needn't pay anything.
A B C D
B
[解析] Whenever a bank ]ends out money it will generally charge interest to the customer.
8.
A.The financial reporting is used to provide information useful for making investment and lending decision.
B.The financial reporting is useless.
C.The financial repotting can't help people to decide whether they invest on something or not.
D.The financial reporting has no objectives.
A B C D
A
[解析] The primary objectives of financial reporting is to provide information useful for making investment and lending decisions.
9.
A.China wants to encourage competition from foreign financial institutions.
B.China can't expand the list of areas open to foreign banking establishment.
C.China has to restrict the list of the areas open to foreign banking establishment.
D.China failed to expand the list of the areas open to foreign banking establishment.
A B C D
A
[解析] To encourage competition from foreign financial institutions, China has expanded the list of areas open to foreign banking establishments to include all large cities throughout the country.
10.
A.Cash is crucial to a country's economy.
B.Money is crucial to a country's economy.
C.Capital is crucial to a country's economy.
D.Banks are crucial to a country's economy.
A B C D
D
[解析] Banks are crucial to a country's economy, they serve as the center point of the exchange of money throughout the economy.
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.
[解析] W: When can you have the agreement ready? M: We will get it ready this evening and sent it to your office for your signature tomorrow morning. Q: When is the agreement ready?
2.
A.The one - year plan.
B.The three - month plan.
C.The six - month or twelve - month plans.
D.The two - year plan.
A B C D
C
[解析] W: What maturities are the most popular? M: Most of our customers use the six - or twelve - month plans. Of course, you may renew the certificate on maturity if you wish. Q: What maturities are the most popular?
3.
A.The minimum deposit reserve.
B.Adjusting the base interest rate.
C.Regulating rediscounting.
D.Open market operations.
A B C D
A
[解析] W: What kind of monetary policy instruments may your bank use? M: They include adjusting the base interest rate, regulating, rediscounting, and open market operations. Q: Which of the following wasn't mentioned by the woman as a monetary policy?
4.
A.78507476.
B.78107476.
C.77007476.
D.78007476.
A B C D
D
[解析] W: Excuse me, but may I ask your name and account number? M: Ah, I forgot to fill in. My name is Sully Thomas, my account number is 78007476. Q: What is his account number?
5.
A.RMB 10.
B.RMB 2.
C.RMB 5.
D.RMB 1.
A B C D
B
[解析] W: Do you charge for cheeks? M: Yes, we do. Each check you write will cost RMB 2. Q: How much will it cost if you write a check?
[解析] W: What kind of currency do you want to change? M: Dutch guilders, please. Q: What kind of currency does the man want to change?
7.
A.RMB 1000.
B.RMB 2000.
C.RMB5000.
D.RMB500.
A B C D
C
[解析] W: How much cash do you plan to deposit in your account? M: RMB 5000, please. Q: How much money does the man plan to deposit in his account?
8.
A.Almost 500.
B.Almost 5100.
C.Almost 5500.
D.Almost 5000.
A B C D
D
[解析] W: Do you know how many Savings and Loan Associations there are in the United States? M: There are almost 5000. Q: How many Savings and Loan Associations are there in the United States?
9.
A.the market prices.
B.the expansion of the bank.
C.hiring new staff.
D.the cost of the bank operation.
A B C D
D
[解析] W: Why is the increase in the cost as large as eighteen percent? M: It is partly because of the increase in staff numbers required to deal with the expansion of the bank's fee - generation activities. Q: What are they talking about?
10.
A.The unused balance can be transferred to Canada.
B.The woman must pay postage and telegraphic fees.
C.The woman needn't pay postage and telegraphic fees.
D.The handling charges are free.
A B C D
C
[解析] W: When I leave China, would the unused balance be transferred to Canada? Am I supposed to pay any charges for such a transfer? M: It can be done and is free of any handling charges except for the out - of- pocket expenses, such as postage and telegraphic fees. Q: Which of the following is not true?
Section Three Directions: In this section you will hem' 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 hark the corresponding letter on the ANSWER SHEET with a single line through the center.
C.the cashier will examine the sales slip carefully
D.the cashier will scold you for not taking cash with you
A B C D
D
[解析] 21-23 Suppose you buy something in a department store which has a pre - arrangement with the bank to accept credit cards for payment of goods or service. You hand in your credit card to the cashier, the cashier will give you a sales slip. You sign the sales slip, and give it back to the cashier. The cashier first checks your I. D. to make sure that you are the lawful holder and user of the credit card and then examines the sales slip carefully because details of each sale are provided on the sales slip. A part of the required information is hand - written and the remainder is obtained by processing the credit card and sales slip through an imprinter which is usually provided by the card issuing bank. 21. If you hand in your credit card to the cashier, which of the following won't the cashier do?
2.
A.the government of tile city
B.the card issuing bank
C.the department store
D.the management department
A B C D
B
[解析] Who provided the imprinter?
3.
A.Details of each sale are provided on tile sales slip.
B.There are no details of each sale in the sales slip.
C.There is no signature on the sales slip.
D.There is no other information on the 'sales slip.
[解析] 24-26 Many people want very much to improve their living conditions, but most people cannot pay all the money at one time. They may turn to a housing mortgage. With a mortgage, the purchasers needn't pay all the money for the house at one time. They just pay a certain amount first and they can move into the house. The purchasers pay the remaining amount each month until they pay all the money. This is actually purchasing by installments. When providing the housing mortgage, the banks hold the certificate of the house property in their hands. The hank will give it to the buyer when he pays all the money. So if the buyer doesn't pay the rest back, the bank can compel the buyer to leave because the house actually belongs to the bank since the bank holds the certificate of the house property. 24. If people can't pay all the money for their new house at one time, what should they turn to?
2.
A.After they hand in their certificate of the house property.
B.After they pay a certain amount of money first.
C.After they have paid all the money for the house.
D.After they have the certificate of the house property.
A B C D
B
[解析] According to the passage, when can people move into the house?
3.
A.the owner of the house
B.the banks
C.their friends
D.the buyer of the house
A B C D
B
[解析] When providing the housing mortgage, who hold the certificate of the house property in their hands?
[解析] 27-30 Lower prices might not be enough to change the attitudes of many analysts and fund managers. Even top - rated Shanghai Petrochemical, which reported a 72% increase in net profit for last year, has its detractors. Fanton Chuck, an analyst at Crosby Securities (HK) Ltd., thinks Shanghai Petrochemical is wasting up to 30% of the oil it buys, an amount that could prove crippling. "A decent California plant may experience a wastage rate of 4% to 5% (for oil) ," he says. "We classify Shanghai Petrochemical a short - term trading buy." If you're feeling adventurous, he explains, buy now but think about exiting if the share price rises 10%. 27. According to the report of the top - rated Shanghai Petrochemical, how much did it increase in net profit last year?
2.
A.Higher prices
B.Average prices
C.Fixed prices
D.Lower prices
A B C D
D
[解析] Which of the following might not be enough to change the attitudes of many analysts?
3.
A.40% to 50%
B.5% to 6%
C.4% to 5%
D.14% to 15%
A B C D
C
[解析] What is the wastage rate a decent Caliafornia plant may experience?
4.
A.Shanghai Petrochemical is wasting up to 30% of the oil it buys.
B.Shanghai Petrochemical is a long- term trading buy.
C.Shanghai Petrochemical is a short- term trading buy.
D.Shanghai Petrochemical was top - rated last year.
A B C D
B
[解析] According to Fanton Chuck, an analyst at Crosby Securities Ltd., which one is not true?
Part Two Reading
Section One Directions: Each of the following sentences is provided with four choices. Choose the one that best completes the sentence.
1. A physical commodity that is valued in its own ______ and also used as a means of payment is commodity money.
A.character
B.term
C.norm
D.right
A B C D
D
2. At such a price, the VCR ______ the cost of home movie watching.
A.countered
B.sliced
C.slashed
D.dived
A B C D
C
3. During tile Great Depression, the four years from 1929 to 1933, unemployment ______ almost one fifth of the labor force in the industrial world.
A.induced
B.afflicted
C.incurred
D.affixed
A B C D
B
4. Alternatively, ______ may lead to call for protection against foreign imports or capital controls to defend the exchange rate.
A.debts
B.loans
C.regulation
D.deficits
A B C D
D
5. Applicable to the entire World Bank Group is the ______ of most governmental borrowers for multinational loans.
A.like
B.influence
C.affect
D.preference
A B C D
D
6. To date, there have been no ______ on loans made by the World Bank.
A.fraud
B.cheat
C.mistakes
D.defaults
A B C D
D
7. The IFC's policy is to favor joint ventures that have some local capital ______ at the outset.
A.initiated
B.committed
C.commemorated
D.commigled
A B C D
B
8. The IDA charges only three fourths of 1 percent as a service charge on ______ loan balances.
A.debt
B.outperforming
C.outdoing
D.disbursed
A B C D
D
9. The historic ______ ceiling is $ 940, but scarcity of resources has long limited access to IDA funds to countries with per capita incomes less than $ 580.
A.payment
B.repayment
C.eligibility
D.demand
A B C D
C
10. The World Bank's efforts to direct its hard loans to private enterprise have created a record of decades of ______ lending.
A.botched
B.misled
C.distorted
D.capital
A B C D
A
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 Large amounts of the securities sold by both government 1 private promoters were purchased by foreign investors. Foreign capital 2 a decisive role in the development of the nation's early transportation system. The huge role that foreign capital played - 3 the economic development of the United States is parelleled by the developing nations of today. These nations now 4 many of the financial problems that the United States experienced during its early years. Private savings in many of these countries is negligible 5 almost all currant income must be used for immediate consumption.
1.
A.that
B.by
C.and
D.with
A B C D
C
2.
A.acted
B.took
C.played
D.had
A B C D
C
3.
A.in
B.over
C.for
D.at
A B C D
A
4.
A.see
B.face
C.meet
D.solve
A B C D
B
5.
A.since
B.as
C.for
D.because
A B C D
C
Passage Two Individual nations and 1 international organizations as the World Bank supply large amounts of capital to the developing nations of the world to increase their productive 2 . The flow of development capital not only stimulates economic expansion in these countries but it also makes their capital much more 3 . For example, speedier transportation reduces the amount of goods in transit, thus releasing working capital for other 4 . In due time, as internal capital formation increases, it is hoped that the need for foreign capital will be eliminated and that these countries can then enjoy an independent capital 5 process.
1.
A.much
B.many
C.such
D.a number of
A B C D
C
2.
A.ability
B.capacity
C.competence
D.skills
A B C D
B
3.
A.effective
B.confident
C.proficient
D.efficient
A B C D
D
4.
A.aims
B.objectives
C.purposes
D.actions
A B C D
C
5.
A.flow
B.production
C.formation
D.income
A B C D
C
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 Cash in advance means that the buyer places the funds at the disposal of the seller prior to shipment of the goods or provision of services. While this method of payment is expensive and involves risks, it is not uncommon when the manufacturing process or services delivered are specialized and capital intensive. In such circumstances the parties may agree to fund the operation by partial payments in advance or by progress payments.
1. The seller can deal with the funds before the shipment of the goods through cash in advance.
A.Right
B.Wrong
C.Doesn't say
A B C
A
2. Cash in advance applies when the manufacturing process or services delivered are labor intensive.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. The buyer has to pay the seller fully in advance in this ease.
A.Right
B.Wrong
C.Doesn't say
A B C
B
Passage Two Applicants, at times, request the issuance of documentary credits containing excessive details for the beneficiary to comply with under the documentary credit. Unfortunately, banks may not encourage this practice as they are concerned that applicants may include excessive details for fear that the beneficiary may overlook certain conditions or present documents with discrepancies which would cause the documents to be refused if the applicant so desired.
1. Rough information is required to be contained by the applicants in the documentary credit.
A.Right
B.Wrong
C.Doesn't say
A B C
B
2. The beneficiary will have to comply with excessive details requested by the bank.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. The applicants sometimes provide short - term loans to the beneficiary.
A.Right
B.Wrong
C.Doesn't say
A B C
C
Passage Three Internet banking has many advantages for hanks. It is much cheaper to service a customer who makes contact only by phone, interactive TV, computer or other terminals, doing without the expensive branch network. Nevertheless, with Internet banking, customers do much of the basic data inputting themselves, further saving staff time of banks. Banks can invest the saved resources of human power and capital on utilizing the information of its customers when they are transacting, i. e. to route, analyze, and integrate data into meaningful patterns. Processed customer information is and will remain to be an invaluable asset of banks. And there is an element of self- selection by higher earning customers--the Internet banking customers tend to be those who are relatively wealthy and generate the banks' profits. These advantages therefore suggest that the Internet is regarded as an increasingly important commercial tool by a growing number of banks. However, the risks are real and the uncertainty of outcome is still high. In fact, moving financial services to the Internet creates a totally new competitive landscape for banks. Instead of operating within clear - cut service boundaries, banks suddenly find themselves competing for customer loyalty and liquidity. The competition from other well - established financial organizations could be increased. What's more, the competition may come from a technology provider, a tiny start -up, or a telecommunications titan as easily as from within the industry. The advent of Web - based commerce has added new layers of complexity and unpredictability to the worlds of commercial and retail banking, investment banking, back - end processors and front - end financial software providers.
1. Internet banking can save banks' resources of human power and capital.
A.Right
B.Wrong
C.Doesn't say
A B C
A
2. Internet banking obscures the service boundaries of banks and therefore reduces the risks.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. With the advent of Web- based commerce, start - ups are not a threat to other companies.
A.Right
B.Wrong
C.Doesn't say
A B C
B
4. The worlds of banking have been made more complicated and uncertain because of the internet as an increasingly important commercial tool.
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 China will continue to pursue a sound monetary policy, and seek refinements in the conduct of monetary policy by relying mainly on indirect policy instruments. First, open market operations will be expanded, and the quality of the relevant decision - making will be improved to optimize the timing and scale of open market transactions. Transaction frequency will be increased and fine - tuning measures will be taken as the occasion warrants. Flexibility will be exercised in selecting modes of transaction so as to give further play to the open market in guiding short - term interest rates. Market infrastructure will be strengthened through improvements in the settlement and clearing system. Second, rediscount business will be further developed. While expanding the range of bills eligible for discount, the ceiling on discount interest rate will be gradually lifted in support of the market- based interest hate reform. The purpose is to enhance the role of rediscount in guiding market interest rate and commercial bank behavior. Third, the required reserve system will be further improved. The basis for calculating the required reserves will be improved by introducing the concept of average balance in the accounting period. Verification of the required reserve will also be improved accordingly. Fourth, efforts will be made to gradually increase market influence over the degree to which interest rates vary around the central bank rates, with money market interest rates as the key intermediate rate determined by market supply and demand. In sequencing of interest rate liberalization, foreign currency interest rate policies will be reformed before those governing local currency rates, rural rates before those far urban financial institutions, and bank lending rates ahead of deposit rates. Thus the main elements of the reform will involve relaxing restrictions on the yield at issue of domestic enterprise bends, leaving these to be determined by the market; lifting control over the deposit and loan interest rates of rural credit co - operatives and allowing these entities to set their interest rates according to market conditions and tile risk level of lending; and gradually expanding the allowable spread of lending rates for financial institutions in urban areas, and continuing to exercise control over retail deposit interest rates and a flexible management of large - amount deposit interest rates.
1. Why is flexibility needed in selecting modes of open market transactions?
A.To improve the settlement and clearing system.
B.To enhance the role of open market in guiding short - term interest rates.
C.To optimize the timing and scale of open market transactions.
D.To increase transaction frequency.
A B C D
B
2. While expanding the scope of bills eligible for discount, the ceiling on discount interest rate will be, gradually increased in support of the market - based interest rate reform.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. What will be introduced to improve the basis for the required reserves?
A.The role of rediscount.
B.The role of market adjustment.
C.The concept of average balance.
D.Indirect policy instruments.
A B C D
C
4. In sequencing of interest rate liberalization ______.
A.local currency interest rate policies will be reformed before those governing foreign currency rates.
B.rural rate policies are reformed following those for urban financial institutions.
C.bank lending rates arc reformed ahead of deposit rates.
D.All of the above.
A B C D
C
5. There will be no control over retail deposit interest rates and a flexible management of large amount deposit interest rates.
A.Right
B.Wrong
C.Doesn't say
A B C
B
Passage Two Market risk can be further divided into exchange rate risk and interest rate risk. Banks face a risk of losses in positions arising from movements in exchange rates. Established accounting principles cause these risks to be typically roost visible in a bank's trading activities. Banks act as "market - makers" in foreign exchange markets by quoting rates to their customers and by taking open positions in foreign currencies. The risks inherent in foreign exchange business, particularly in running open foreign exchange positions, increase during periods of instability in exchange rates. Interest rate risk refers to the exposure of a bank's financial condition to adverse movements in interest rates. This risk impacts both tile earnings of a bank and tile economic value of its assets, liabilities and off- balance sheet instruments. The primary forums of interest rate risk to which banks are typically exposed me: repricing risk, which arises from tinting differences in tile maturity (for fixed rate) and repricing (for floating rate) of bank assets, liabilities and off- balance sheet positions; yield curve risk, which arises from changes in the slope mid shape of the yield curve; basis risk, which arises from imperfect correlation in the adjustment of the rates earned and paid on different instruments with otherwise similar repricing characteristics; and optionality, which arises from the express or implied options imbedded in many bank assets, liabilities and off- balance sheet portfolios. Although it is a normal part of banking, excessive interest rate risk can pose a significant threat to a bank's earnings and capital base. Managing this type of risk is of growing importance in sophisticated financial markets (with large interest rate exposures). Special attention should be paid to this risk in countries where interest rates are being deregulated.
1. In what way do banks act as "market - makers" in foreign exchange markets?
A.By buying foreign currencies.
B.By quoting exchange rates to customers.
C.By avoiding the risks of the market.
D.Both A and B
A B C D
D
2. Running open foreign exchange positions is ______, especially during periods of instability in exchange rates.
A.of law risk
B.of high risk
C.of no risk
D.visible
A B C D
B
3. How many forms of interest rate risk were mentioned?
A.5
B.3
C.2
D.4
A B C D
D
4. Repricing risk comes from ______.
A.changes in the slope and shape of the yield curve.
B.the express or implied options imbedded in many bank assets, liabilities and off- balance sheet portfolio.
C.timing differences in the maturity and repricing of bank assets, liabilities and off- balance sheet positions.
D.None of the above.
A B C D
C
5. Excessive interest rate risk impacts ______.
A.the earnings of a bank.
B.economic value of a bank's assets.
C.capital base of a bank.
D.All of the above.
A B C D
D
Passage Three Banks need adequate liquidity to meet their obligations when they fall due, especially where the timing and amount of the commitment are uncertain, and to maintain confidence of depositors and shareholders. The major obligations in this context are demand for withdrawals from sight deposits, time deposits, and commitments to lend at a specific date, unutilized overdraft facilities and inter- bank settlements. Banks may provide for liquidity in the following ways. Hold cash or near- cash assets; appropriate cash flows from maturing assets, via assets portfolio management; and new deposits may be attracted and monies could be borrowed in the money markets. Banking regulation requires every bank to maintain a minimum liquidity ratio of "liquefiable assets" to "qualifying liabilities". Every bank is required to maintain a liquidity ratio of not less than 25% in each calendar month, calculated on the basis of the sum of its liquefiable assets and the sum of its qualifying liabilities for each working day of the calendar month concerned. The liquidity ratio is calculated by comparing liquefiable assets which mature within one month to qualifying liabilities which fall due in one month. A bank's balance sheet typically consists of liabilities which are short - terra and assets which are long - term, to ensure that banks could meet their obligations when they fall due, good management of liquidity is important. Furthermore, to cater for the possibility of a sudden liquidity squeeze or other shocks which may place strains on the bank's balance sheet, a cushion of liquidity is essential. However, maintaining a high level of liquidity at all times is costly. Banks have to run acceptable level of maturity mismatch to generate profits. Therefore, a suitable balance between liquidity and profitability has to be maintained.
1. Why is it necessary for banks to maintain adequate liquidity?
A.To meet the demand for withdrawals from deposits.
B.To fulfill promises to lend at a specific time.
C.To prepare for inter- bank settlements.
D.All of the above.
A B C D
D
2. How may banks provide for liquidity?
A.By reserving cash.
B.By stopping borrowing money.
C.By drawing new deposits.
D.Both A and C
A B C D
D
3. What is the minimum liquidity ratio a bank is required to have?
A.25 % per year.
B.25 % in each calendar month.
C.the stun of liquefiable assets and qualifying liabilities.
D.unspecified.
A B C D
B
4. What does liquidity squeeze mean?
A.There is enough available cash.
B.There is a shortage of cash and liquid assets.
C.Liquid asset can be obtained from different sources.
D.Banks don't have to worry.
A B C D
B
5. The higher the level of liquidity a bank maintains, the more, profit the bank can gain.
A.Right
B.Wrong
C.Doesn't say
A B C
B
Passage Four Sound risk management and a system of effective internal controls are critical components of bank management and foundation for the safe and sound operation of banking organizations. They help to ensure that goals and objectives of a banking organization will be met, that the bank will achieve long - term profitability targets, and maintain reliable financial and managerial reporting, that risks in banking activities are effectively identified, understood, measured, monitored real controlled to an acceptable level, that the bank will comply with laws and regulations as well as policies, plans, internal rules aim procedures, and decrease the risk of unexpected losses or damage to the bank's reputations. As a consequence, the Basel Committee, along with banking supervisors throughout the world, has focused increasingly on the importance of sound internal controls and strong risk management practices, and issued a number of papers in these areas, which include "Principles for Management of Interest Rate Risk"(September, 1997), "Framework for Internal Control Systems in Banking Organizations"( September, 1998), "Operational Risk Management" (December, 1998), "Principles for the Management of Credit Risk"(September, 2000), etc. Internal control consists of five interrelated elements: (1) management oversight and the control culture; (2) risk recognition and assessment; (3) control activities and segregation of duties; (4) information and communication; and (5) monitoring activities and correcting deficiencies. Internal controls must be supplemented by an effective audit function that independently evaluates the adequacy, operational effectiveness and efficiency of the control systems within an organization. Banking supervisors must be satisfied that effective policies and practices are followed and that management takes appropriate corrective action in response to internal control weaknesses identified by internal and external auditors. In addition, banking supervisors must ensure that banks have in place adequate policies and procedures to ensure compliance with a wide array of banking and non - banking laws and regulations including anti - money laundering regulation which focuses on "know - your- customer" policies, customer identification and record - keeping, detecting and reporting suspicious transactions etc.
1. To a banking organization, effective risk management and internal control can help ensure ______.
A.that the bank will achieve long- term profitability targets.
B.that the risks are identified and under control.
C.that the bank will comply with relevant laws and regulations.
D.All of the above.
A B C D
D
2. Which of the following is not correct?
A.Internal controls must be supported by an effective audit function.
B.In case of internal control weakness identified by auditors, management needs to take appropriate corrective action.
C.Banking supervisors must ensure that banks only observe banking laws and regulations.
D.Sound internal controls and strong risk management practices are critical for the safe and sound operation of banking organizations.
A B C D
C
3. To prevent money laundering, ______.
A.banks need an effective audit.
B.banks need to focus mi "know- your- customer" policies.
C.banks need to detect and report suspicious transactions.
D.Both B and C
A B C D
D
4. The function of an effective and it is ______.
A.to decrease the risk of unexpected losses or damage to the bank's reputations.
B.to help file bank achieve long - term profitability targets.
C.to independently assess the adequacy, operational effectiveness and efficiency of the control systems within an organization.
D.All of the above.
A B C D
C
5. Internal control consists of ______.
A.management control.
B.risk identification.
C.correction of deficiencies.
D.All of the above.
A B C D
D
Part Three Writing
Section One Directions: Describe the procedures of mail transfer (M/T) 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 M/T. ② Sending Instructions of payment: The remitting bank sends instructions to the paying bank by airmail asking the latter to make the payment. ③ Sending Advice of Drawing: The paying bank sends tile advice of drawing to tile payee. ④ Drawing Money: The payee draws the money from the paying bank. ⑤ Making Payment: The paying bank pays money to the payee.
Section Two Directions: Translate the following sentences into Chinese. Write your translation on the ANSWER SHEET.
1. China will continue to pursue a sound monetary policy, and seek refinements in the conduct of monetary policy by relying mainly on indirect policy instruments. First, open market operations will be expanded, and tile quality of the relevant decision - making will be improved to optimize the timing and scale of open market transactions. Transaction frequency will be increased and fine - turning measures will be taken as the occasion warrants.
We are indeed pleased to notice that the volume of trade between our two countries has been increasing rapidly. In order to cope with the ever increasing banking transactions between our two banks, it is our pleasure to propose the establishment of correspondent relationship with your esteemed bank. With this good wish, we enclose herewith a copy of our Annual Report for the fiscal year 2001 for your reference. We shall be pleased to dispatch to you our Control Documents upon our receipt of your favorable reply. We anticipate to receive a favorable reply from you.
Yours sincerely, ××× Manager Bank of China Shanghai Branch