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] For last month, the rent was $ 490 and water $ 19.
2.
A.U.S. dollars.
B.Hongkong dollars.
C.Euros.
D.RMB
A B C D
C
[解析] Some analysts say that up to 20 per cent of the country's reserves may now be in Euros.
3.
A.HSBC owns 8% of the Bank of Shanghai.
B.HSBC owns 62% of the Bank of Shanghai.
C.HSBC owns 8% of the Hang Seng Bank.
D.HSBC owns 8% of the Bank of China.
A B C D
A
[解析] HSBC owns 8 percent of the Bank of Shanghai, and it also owns about 62 percent of Hongkong lender Hang Song Bank.
4.
A.Jinan, Fuzhou, Tianjin and Shanghai.
B.Jinan, FuzJaou, Chengdu and Beijing.
C.Jinan, Tianjin, Shanghai and Beijing.
D.Jinan, Fuzhou, Chengdu and Chongqing.
A B C D
D
[解析] Four more Chinese cities-Jinan, Fuzhou, Chengdu and Chongqing-are added to the list of cities allowing foreign - funded banks to deal with RMB business.
5.
A.2001
B.2002
C.2003
D.2000
A B C D
A
[解析] Cathay Pacific has distributed year - end bonuses to its staff every year except 2001.
A.Risk and maturity are two concepts that are fundamental to investment analysis.
B.Risk and interest are two concepts that are fundamental to investment analysis.
C.Risk and return are two concepts that are fundamental to investment analysis.
D.Interest and maturity are two concepts that are fundamental to investment analysis.
A B C D
C
[解析] Risk and return are two concepts that are fundamental to investment analysis.
7.
A.Financial institutions haven't any special rights.
B.Financial institutions don't want to expand their product offerings.
C.Financial institutions don't want tow in new business.
D.Financial institutions want to expand their product offerings and win new business.
A B C D
D
[解析] In addition to protecting their existing franchise, financial institutions can look to on - line banking and related services to expand their product offerings and win new business.
8.
A.Official quotations for the main foreign currencies are quoted every week.
B.Official quotations for tile main foreign currencies are quoted everyday.
C.Official quotations for the main foreign currencies are quoted every other day,
D.Official quotations for the main foreign currencies are quoted every other week.
A B C D
B
[解析] In China, foreign exchange is controlled and official quotations for the main foreign currencies are quoted everyday.
9.
A.Investors can cope with any problems they may meet.
B.Investors can't cope with problems when they meet difficulty.
C.Investors can cope with some investment problems by confining their investments to those that involve only modest risk.
D.Investors can cope with easy problems.
A B C D
C
[解析] Investors can cope with some investment problems by confining their investments to those that involve only modest risk.
10.
A.4.3 billion
B.4.3 million
C.43 billion
D.43 million
A B C D
D
[解析] Nearly 43 million Americans receive social security benefits and they strongly oppose cuts in entitlements.
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: By maturity, loans can be divided into two broad categories, what are they? M: The short - term loans and long- term loans. Q: What are the two categories of loans according to the maturity?
2.
A.Finding out customers' cash balance.
B.Moving money between accounts.
C.Drawing money from the bank.
D.Reporting the loss.
A B C D
C
[解析] W: What is the use of a phone reply service for banks? M: This service can allow customers to find out their cash balance, move money between accounts, and report the loss and stop the use of their bank cards. Q: What is not the use of phone reply service for banks?
3.
A.Using traveler's cheeks.
B.Using credit.
C.Using cash.
D.Using foreign currency.
A B C D
A
[解析] W: What is the best method of carrying money internationally? M: Using traveler's checks. Q: What is the best method of carrying money internationally?
4.
A.Washington's.
B.Jefferson's.
C.Hamilton's.
D.Lincoln's.
A B C D
D
[解析] W: Whose portrait is on the five - dollar bill? M: Lincoln's. Q: Whose portrait was mentioned in the dialogue?
5.
A.Thus she can know the most appropriate investment and the best time of investment.
B.Thus she can earn a lot of money.
C.Thus she can help others.
D.Thus she can know about how much money she has.
A B C D
A
[解析] W: Is it necessary for me to make a note of all my assets? M: Yes, of course, thus you calm work out what sort of investment suits you and over what time frame. Q: Why should the woman make a note of all her assets?
[解析] W: If you own stock in a company, the company doesn't make money and has no reasonable prospect of doing so soon, what would you do? M: Then I will sell it. Q: What would the man do as to his stock?
7.
A.1980
B.1989
C.1988
D.1998
A B C D
C
[解析] W: Do you know when Australia introduced its first plastic note? M: In 1988. Q: When did Australia introduce its first plastic note?
8.
A.You can go everywhere.
B.You don't have the risk of carrying large amounts of cash with you.
C.You can go abroad.
D.You can use it very freely.
A B C D
B
[解析] W: Why do people use checks? M: In this way, you don't have the risk of carrying large amounts of cash with you. Q: What is the reason of using checks?
9.
A.Mr. Green.
B.Mr. Smith.
C.Mr. Glasgow.
D.Mr. Bush.
A B C D
B
[解析] W: What did you say? M: They made a draft on the Glasgow branch of the bank for $ 50 for Mr. Smith. Q: For whom did they make a draft?
10.
A.By floating the pound.
B.By increasing the export.
C.By increasing the import.
D.By lending money to others.
A B C D
A
[解析] W: What did the British government do to improve Britain's trading position? M: They did so by floating the pound. Q: How did the British government improve Britain's trading position?
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] 21-24 Hyperinflation is defined as an economic condition during which there is a steep increase in prices. In accordance with the laws of economics, three factors combine to create this condition. First, demand must be much greater than the supply of available goods. Second, the country must continuously create and thereby build up an ever - increasing supply of money. Third, the governmental processes that are used to collect taxes must be crippled. Let's imagine a country where production is barely accomplishing its goal: to keep up with demand. When this happens, the government should decrease the salaries of the workers by raising taxes. But time government is powerless to collect the taxes, so it prints more money to compensate for the goods it must purchase. This new money goes to the workers who produced the goods; as a result, the people are not forced to give up certain things for a while - they actually become richer. While this might appear to be a positive step, it is actually regressive. Every month the government is forced to print more. and more money, thereby increasing its liabilities until it is destroyed. The only way to prevent total economic collapse in such a situation is for the government to increase taxes in a manner that is characterized by impartiality to everyone involved. 21. Which of the following might occur during hyperinflation?
2.
A.hyperinflation is just a passing phase in the economic development
B.people could benefit a lot from hyperinflation
C.hyperinflation is used by a government to raise taxes
D.hyperinflation may cause the downfall of a government
A B C D
D
[解析] What does the passage imply?
3.
A.harmful
B.negative
C.going back
D.progressive
A B C D
C
[解析] What docs the word "regressive" probably mean?
4.
A.the cause of hyperinflation
B.the dangers that hyperinflation brings to a country
C.the relationship between taxes and hyperinflation
D.the supply of money and hyperinflation
A B C D
A
[解析] What does the author centers on in this passage?
[解析] 25-28 Money is not always composed of dimes, quarters, half dollars, mid bills. For instance, German currency was nearly valueless immediately after World War II. Because American soldiers in time occupation Forces has ready supplies of cigarettes, which the Germans wanted but were unable to get, they paid for purchases with cigarettes as money. Marketable products were priced in terms of so many cigarettes or packs of them; Germany was, in fact, on a temporary "cigarette standard" of money. Throughout history, a variety of strange things has been used for money. In ancient times, the Romans bought and sold goods for cattle. Some Indians, when trading, used strings of beads called "wampum" Sea shells, grindstones, coconuts, and feathers were other queer kinds of money. From ages past to the present, numerous peuples have employed various metals- iron, copper, silver, and gold--as money. Of course, one of the most common types of money, especially since the art of printing was invented, had been a piece of paper with the right kind of printing on it. 25. How much does China insurance Co. Ltd. launch as the initial public offering?
2.
A.worshipped cattle
B.used cattle as a means of exchange
C.printed money
D.didn't value cattle
A B C D
B
[解析] What share did PingAn insurance Company have?
3.
A.in some places a coconut would he mere valuable than a dollar bill
B.iron will replace gold as a money standard in the near future
C.sea shells will become more valuable
D.all nations are currently on a gold standard
A B C D
A
[解析] From the facts presented in this article, which of the following is conceivable?
4.
A.The invention of printing press enabled a more nearly standard kind of currency.
B.A variety of strange things has been used for money.
C.All Germans are heavy smokers.
D.The invention of the printing press had little effect on the types of money used.
A.Central banks usually do net disclose their foreign reserves.
B.Asia's central banks begin to move back to their traditional ties to the Euro.
C.Asia's reserves have been heavily weighted with U.S. dollars for decades.
D.Asia's breaks had a period of growing interest in the Euro.
A B C D
B
[解析] 29-30 After a period of growing interest in the euro, Asia's central banks appear to be moving back to their traditional ties to the US dollar. Central banks usually do not disclose their foreign reserves, but it is no secret that Asia's reserves have been heavily weighted with US dollars for decades. There have been signs that this might be changing. This was pushed by the stronger euro, time European. Central Bank's (ECB) relatively high interest rates in the first half of the year, an effort to spread its currency risk, and a certain amount of political influence. Indonesia and Malaysia have been the strongest supporters of more euro - based transactions. 29. Which of the following is not true?
2.
A.Indonesia and Malaysia.
B.Malaysia and China.
C.Indonesia and Singapore.
D.Malaysia and Singapore.
A B C D
A
[解析] What are the two strongest supporters of move euro- based transactions?
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. Deposits are generally repayable on ______ or in the fairly near future.
A.control
B.interest
C.loan
D.demand
A B C D
D
2. Ordinary shares in ninny companies can be sold at short ______ and their value turned into cash.
A.time
B.period
C.notice
D.information
A B C D
C
3. A house may hang ______ for many months and the price received will be a matter for negotiation.
A.loose
B.rent
C.up
D.fire
A B C D
D
4. The Bretton Woods Agreement was followed soon after by ______ floating.
A.income
B.popular
C.generalized
D.cosmopolite
A B C D
C
5. The government unilateral transfers are aid--which may be in money or ______ --from developed countries to developing countries.
A.cash
B.property
C.equity
D.kind
A B C D
D
6. The government of this nation seemed to feel that this nation's prestige would be ______ by a devaluation of the domestic currency.
A.hindered
B.prevented
C.restrained
D.tarnished
A B C D
D
7. Whenever a monetary system does not work, barter ______ over.
A.penetrates
B.takes
C.encroaches
D.pushs
A B C D
B
8. Lenders at fixed interest go to great lengths to ensure that the borrower is a good credit ______.
A.worthy
B.liable
C.risk
D.dependant
A B C D
C
9. One of the IMF's original objectives was the ______ of fixed exchange rates among member countries' currencies, with par value related to the US dollar.
A.fixing
B.variability
C.maintenance
D.distribution
A B C D
C
10. A bank is perhaps offering a high rate of interest became it desperately needs to attract funds to avoid ______ bankruptcy.
A.impending
B.immense
C.immeasurable
D.immaculate
A B C D
A
Section Two Directions: There are a number of blanks in each of the following passages. Far 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 Those economists who believe that long- run inflationary bias will continue do so 1 the basis of the following factors: (1) Prices and wages tend to 2 during periods of boom in a competitive economy. This tendency is reinforced by wage contracts that provide escalator clauses to keep wages in 3 with prices trod by wage increases that are sometimes greater than 4 in productivity. (2) During recessions, prices tend to remain stable 5 decrease.
1.
A.in
B.from
C.on
D.at
A B C D
C
2.
A.raise
B.rise
C.expand
D.blow
A B C D
B
3.
A.contrast
B.opposite
C.line
D.control
A B C D
C
4.
A.increases
B.decreases
C.decline
D.reduction
A B C D
A
5.
A.not
B.instead
C.rather than
D.but to
A B C D
C
Passage Two This is because major unions have long - run contracts calling for annual wage increases no 1 what economic conditions are at the time. The tendency of large corporations to rely on nonprice competition and to reduce output rather than cut prices 'also keeps prices 2 Furthermore, if prices do decline drastically in a field, the government is likely to step in with programs to help take excess supplies 3 the market. There is little doubt that prices would decline in a severe and prolonged depression. However, government would take action to counter the resulting unemployment 4 the economy reaches such a level. 5 we no longer experience the downwind price pressure of a depression.
1.
A.question
B.reason
C.doubt
D.matter
A B C D
D
2.
A.low
B.high
C.volatile
D.stable
A B C D
D
3.
A.of
B.off
C.from
D.away
A B C D
B
4.
A.after
B.before
C.as long as
D.when
A B C D
B
5.
A.Thus
B.So
C.Since then
D.Even so
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 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 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.
1. The negotiation of a credit means that the beneficiary can get the money at some future date.
A.Right
B.Wrong
C.Doesn't say
A B C
C
2. The beneficiary will have to pay interest for the advance money provided unconditionally by the bank if it negotiates a credit.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. Where a bank negotiates a credit and makes advance payment to the beneficiary, the negotiation advances are without recourse.
A.Right
B.Wrong
C.Doesn't say
A B C
B
Passage Two The term "acceptance" can only apply when the credit calls for usance bills (term bills), i.e. bills of exchange payable at a specified time 'after acceptance by the drawee. And bills should be drawn on a bank. 'File acceptance credit is also referred to ms a "term credit" or "usance credit", which means that the seller draws a draft on the nominated bank demanding payment at some &terminable future date, e.g. at 30 days' sight instead of at sight. In practice, this means dial instead of receiving immediate payment on presentation of the documents ( at sight), the seller's draft is returned to him accepted on face by the nominated bank.
1. The seller usually requires a specified bank to draw a credit bill to ask the buyer to make payment.
A.Right
B.Wrong
C.Doesn't say
A B C
B
2. After the drawer accepts a bill, the issuing bank can demand payment from a nominated bank.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. By credit term, we mean that even though the seller does not receive payment immediately, the draft is returned to him accepted on face by the nominated bank which will make payment at some determinable future date.
A.Right
B.Wrong
C.Doesn't say
A B C
A
Passage Three A syndicated loan is a loan arranged by a lead bank between 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 which includes inviting other banks to act as manager/ co - manager in providing additional underwriting support to the credit before going to market for general syndication to "participants". The resulting credit is governed by a single loan agreement signed by the borrower and all of the banks involved.
1. From the passage, we can infer that the purpose of the syndicated loan is usually to finance a major capital investment program.
A.Right
B.Wrong
C.Doesn't say
A B C
A
2. A syndicated loan is arranged by a lead bank between borrower, itself, and a group of other banks. The lead bank itself actually does not fund the credit.
A.Right
B.Wrong
C.Doesn't say
A B C
B
3. The resulting credit is governed by separate loan agreements signed by the borrower and the respective banks involved.
A.Right
B.Wrong
C.Doesn't say
A B C
B
4. The negotiating or "lead" bank is responsible for inviting other banks to provide additional credit support.
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 file corresponding letter on tile ANSWER SHEET by drawing a single line through the center.
Passage One Foreign exchange receipts of domestic entities for current account transactions shall be repatriated home and shall not be deposited abroad. Foreign exchange receipts for current account transactions shall be sold to the designated foreign exchange banks, in accordance with the regulations issued by the State Council on the sale, purchase, and payment of foreign exchange, or be deposited in the foreign exchange account upon approval. Foreign exchange for current account payment and transfers may be purchased from designated foreign exchange banks upon the presentation of valid documents and commercial bills. After the foreign exchange restrictions on current account transactions were lifted in 1996, cases of fraud of foreign exchange have increased significantly. To address such problems, the SAFE has taken enforcement actions. To enforce the surrender of export proceeds, the SAFE and its local branches undertake to verify collection of export earnings. When exporting goods abroad, domestic exporting entities are required to undergo the verification procedures. The customs offices shall accept and handle declaration for export based on verification certificate within validity period. Only after no mistakes are found in the examination can customs permit entrance and clearance. After goods have been shipped out of Chinese territory, the customs shall write their opinion and stamp with "proof seal" on the verification certificate, with which the exporter goes through verification procedures. The exporter must send the stub of verification certificate together with commercial invoices and declaration form to the SAFE within 60 days of the date of customs declaration. The export earnings are then surrendered to designated banks or entered the exporter's foreign exchange account.
1. Foreign exchange receipts of domestic companies for current account goods
A.shall be sent home or deposited abroad.
B.shall be sold to the designated foreign exchange banks in accordance with relevant regulations.
C.might be deposited in the foreign exchange account upon approval.
D.Both B trod C
A B C D
D
2. If domestic entities need foreign exchange for current account payment, ______.
A.they can buy it from any foreign exchange banks.
B.they can buy it from the designated foreign exchange banks unconditionally.
C.they can buy it from the designated foreign exchange banks by showing the relevant valid commercial documents.
D.they can buy it from any banks by presenting valid documents and commercial bills.
A B C D
C
3. The removal of the foreign exchange restrictions on current account transactions ______.
A.has restrained fraud in foreign exchange business.
B.adds to the chances of the fraud of foreign exchange.
C.would mean fraud activity in foreign exchange will be easier to be identified.
D.would mean there will be no fraud of foreign exchange.
A B C D
B
4. When exporting goods abroad, domestic exporting entities are required ______.
A.to go through the verification procedures.
B.to go through the customs clearance process.
C.to send the stub of verification certificate together with commercial invoices and declaration form to the SAFE within 60 days of the date of customs declaration.
D.All of the above.
A B C D
D
5. The export earnings will be ______.
A.purchased from the designated banks by the exporters.
B.submitted to the designated banks or entered into the exporter's foreign exchange account.
C.deposited in any hank.
D.deposited in any domestic hank.
A B C D
B
Passage Two Apart from borrowing from banks, a firm or an individual can obtain funds in a financial market in two ways. The most common method is to issue a debt instrument, such as a bond or a mortgage, which is a contractual agreement by the borrower to pay the holder of the instrument fixed amounts at regular intervals (interest and principal payments) until a specified date (the maturity date), when a final payment is made. The maturity of debt instrument is the time (term) to that instrument's expiration date. A debt instrument is short - term if its maturity is less than a year and long- term if its maturity is ten years or longer. Debt instruments with a maturity between one and ten years are said to be intermediate- term. The second method of raising funds is by issuing equities, such as common stock, which are claims to share in the net income (income after expenses and taxes) and the assets of a business. If you own one share of common stock in a company that has issued one million shares, you are entitled to one millionth of the firm's net income and one millionth of the firm's assets. Equities usually earn periodic payments (dividends) and are considered long - term securities because they have no maturity date. The main disadvantage of owning a corporation's equities rather than its debt is that an equity holder is a residual claimant; that is, the corporation must pay all its mature debt holders before it pays its equity holder. The advantage of holding equities is that equity holders benefit directly from any increase in the corporation's profitability or asset value because equities confer ownership rights on the equity holders. Debt holders do not share in this benefit because their dollar payments are fixed.
1. A firm or an individual can raise funds ______.
A.by borrowing from banks.
B.by issuing a debt instrument.
C.by issuing equities.
D.All of the above.
A B C D
D
2. A bond is long- term if its maturity is ______.
A.between one and ten years.
B.is less than a year.
C.ten years or longer.
D.within 20 years.
A B C D
C
3. Common stock refers to ______.
A.claims to share in the net income of a business.
B.preferred stock.
C.claims to share in the net income anti the assets of a business.
D.claims to dividends.
A B C D
C
4. That "Equity holder" is "a residual claimant" means ______.
A.the corporation must pay its equity holder only after paying its mature debt holders.
B.the equity holder enjoys the privilege of being paid first.
C.the equity holder will be neglected.
D.the equity holder will be looked down upon.
A B C D
A
5. Holding a firm's equities is advantageous than owning its debts in that ______.
A.debt holders share the benefit of any profit increase of the firm.
B.equity holders benefit directly from any increase of the profitability or asset value of the firm.
C.equities give ownership rights to the equity holders.
D.Both B and C
A B C D
B
Passage Three A primary market is a financial market in which new issues of a security, such as a bond or a stock, are sold to initial buyers by the corporation or government agency borrowing the funds. A secondary market is a financial market in which securities that have been previously issued (and are thus secondhand) can be sold. The primary markets for securities are not well known to the public because the selling of securities to initial buyers takes place behind closed doors, gal important financial institution that assists in the initial sale of securities in the primary market is the investment bank.. It does this by underwriting securities, that is, it guarantees a price for a corporation's securities and then sells them to tile public. The New York Stock Exchange (NYSE), in which previously issued stocks are, traded, is the best - known example of secondary markets, although the bond markets, in which previously issued bonds of major corporations and the U.S. government are bought and sold, actually have a larger trading volume. Other examples of secondary markets are foreign exchange markets, futures markets, and options markets. Securities brokers and dealers are crucial to a well - functioning secondary market. Brokers are agents of investors who match buyers with sellers of securities; dealers link buyers and sellers by buying and selling securities at stated prices.
1. A primary market is ______.
A.a financial market where new issues of a security are resold public to initial buyers.
B.a financial market where previously traded securities are sold to initial buyers.
C.a financial market where new securities are sold to initial buyers behind closed doers.
D.a financial market in which securities are resold to initial buyers behind closed doors.
A B C D
C
2. A secondary market is ______.
A.informal and illegal.
B.a financial market in which previously traded securities or stocks are normally resold through an investment bank.
C.a financial market where previously issued stocks are resold behind the closed doors.
D.a financial market in which secondhand securities are resold.
A B C D
D
3. Underwriting securities means ______.
A.fixing the prices of buying and selling only.
B.buying securities and selling them to public.
C.being responsible for writing the documents concerning securities.
D.All of tile above.
A B C D
B
4. Brokers are ______.
A.financial intermediaries.
B.agents of investors who bring together the .sellers and buyers of securities.
C.agents that provide information that the buyers and sellers need to strike a bargain.
D.All of the above.
A B C D
D
5. Dealers ______.
A.have the same functions as brokers.
B.link buyers and sellers.
C.buy and sell securities at stated prices.
D.Both B and C
A B C D
D
Passage Four A share of stock in a firm represents ownership. A stockholder owns a percentage interest in a firm consistent with the percentage of outstanding stock held. This ownership is in contrast to a bondholder, who holds no ownership interest but is rather a creditor of the firm. Investors can earn a return from stock in one of two ways. Either the price of the stock rises over time, or the firm pays the stockholder dividends. Frequently, investors earn a return from both sources. Stock is more risky than bonds because stockholders have a lower priority than bondholders when the firm is in trouble. The returns to investors are less assured because dividends can be easily changed, and stock price increases are not guaranteed. Despite these risks, it is possible to make a great deal of money by investing in stock, whereas it is very unlikely by investing in bonds. Another distinction between stock and bonds is that stock does not mature. Ownership of stock gives the stockholder certain rights regarding the firm. One is the right of a residual claimant: stockholders have a claim on all assets and income left over after all other claimants have been satisfied. If nothing is left over, they get nothing. As noted, however, it is possible to get rich as a stockholder if the firm does well. Most stockholders have the right to vote for directors and on certain issues, such as amendments to the corporate charter and whether new shares should lie issued.
1. A stockholder ______.
A.owns a percentage interest in a firm and therefore is a creditor of the firm.
B.earns a return from stock price increases or dividends.
C.enjoys a priority over bondholders when the firm is in trouble.
D.faces less risk than bondholder and therefore is more likely to make a great deal of money.
A B C D
B
2. That a stockholder has the fight of a residual claimant means ______.
A.stockholders have a claim on assets before all other claimants are satisfied.
B.stockholders have a claim on assets or income left over after aH other claimants are satisfied.
C.stockholders have no claim on assets left over after all other claimants are satisfied.
D.All of the above.
A B C D
B
3. Bondholders ______.
A.hold ownership interest in a firm.
B.are creditors of a firm.
C.are very likely to make a great deal of money.
D.are paid after stockholders.
A B C D
B
4. Stocks ______.
A.have a longer maturity than bonds.
B.enable their holders to get rich even if the firm does not do well.
C.have no maturity.
D.guarantee their holders' interest when the firm is in trouble.
A B C D
C
5. Who has the right to vote for directors?
A.Bondholders.
B.Investors.
C.Stockholders.
D.Public.
A B C D
C
Part Three Writing
Section One Directions: Describe the procedures of telegraphic transfer(T/T) according to the number older in the following charter. Write your answer on the ANSWER SHEET.
1.
① Application: The remitter applies to file bank for remittance by T/T. ② Sending Instructions of payment: The remitting bank sends instructions to the paying bank by cable asking the latter to make the payment. ③ Sending Advice of Drawing: Tile paying bank sends the advice of drawing to the payee. ④ Drawing Money: The payee draws the money from file paying bank. ⑤ Making Payment: The paying bank pays money to the payee.
Section Two
1. The reform of the rural credit co - operatives will focus on clarifying ownership and improve governance. With expanded spread of allowable interest rates and a continuation of low tax rates, the policy environment will remain supportive of the rural credit co - operatives, enabling them to deal with inherited burdens and reduce risks.
Upon our claiming on B Bank, London through our London Office reimbursement of our negotiation under the above Credit, we were informed that payment was effected by them under reserve for the reason that the Credit expired on 31st March. We wish to point out that according to your cable amendment of 10th February the shipment and validity dates of the Credit were extended up to 31st May. We presume that it might possibly be due to the failure on your part to advise the reimbursing bank in time of the said amendment, or the advice having gone astray. You are now requested to immediately authorize the B Bank, London to release the reserve. It is hoped that similar cases will not occur in the future.
Yours sincerely, ××× Manager Bank of China Shanghai Branch