a. only if clearly incorporated into the contract of sale
b. to international shipments beyond a certain tonnage
c. to international shipments under the uniform commercial code
d. to all international shipments of goods
41. under which one of the following circumstances would it be wise for your customer to arrange a forward foreign exchange contract? ______.
a. import of goods priced in a foreign currency
b. import of goods priced in rmb
c. export of goods priced in rmb
d. export of goods priced in a foreign currency where the rate of exchange has been agreed in the sales contract
42. incoterms address ______.
a. the risks of loss between the parties
b. breaches of contract
c. ownership rights
d. type of ship used
43. which of the following is or was an example of representative full-bodied money? ______.
a. debt money
b. ats account
c. gold certificate
d. demand deposit
44. risks associated with investing in foreign countries are the following except ______.
a. voting risk
b. exchange rate risk
c. country risk
d. political risk
45. an exporter sells goods to a customer abroad on fob and on cif term. who is responsible for the freight charges in each? ______.
a. exporter; exporter
b. exporter; importer
c. importer; importer
d. importer; exporter
46. default risk refers to the possibility that a borrower may ______.
a. be unable to repay the principal on his loan
b. be unable to make the interest payments on his loan
c. go bankrupt
d. all of the above
47. what is the reserve requirement? ______.
a. the requirement of a bank to deposit a percentage of money
b. the requirement for deposits in cash
c. the percentage of a bank's deposits in the form of cash reserves
d. the requirement for cash reserves
48. a draft is like a check that can be endorsed but it isn't a title to goods, like ______.
a. a bill of lading
b. an inspection certificate
c. a certificate of origin
d. an insurance certificate
49. arbitrage ______.
a. is a general economic term for buying something where it is cheap and selling it where it is dear
b. keeps exchange rates consistent across markets
c. has been outlawed by the international monetary fund
d. cannot occur where there is a forward exchange market
e. both a and b
50. what is the purpose of comparing the ledger entries with the documents? ______.
a. to prove that all the transactions have made for the right amounts
b. to prove that all the accounts have been posted correctly
c. to check the number of all the debits and credits
d. to post the right accounts
51. what is dollar cost averaging? ______.
a. a brokerage account that gives investors cheap trades
b. the idea that prices tend to rise over the long term
c. buying stocks that are below average in value
d. a flat quarterly mutual fund fee averaged throughout the year
e. a strategy of investing money on a regular basis to take advantage of market fluctuations
52. from a chinese bank's point of view, the currency account which it maintains abroad is known as______, while a rmb account operated in china for a foreign bank is termed ______.
a. a vostro account…… a nostro account
b. a vostro account…a mirror account
c. a mirror account…a nostro account
d. a nostro account…… a vostro account
53. under fob terms the bill of lading would state goods ______.
a. loaded on board, freight payable at destination
b. loaded on board, freight paid
c. received for shipment, freight paid
d. received for shipment, freight payable at destination
54. the liabilities of the bank as shown in its balance sheet represent the ______ which it uses in its business.
a. sources of the funds
b. share capital
c. investments
d. advances to customers
55. international payments and other messages are often sent through an international computer network called ______.
a. chaps
b. bacs
c. swift
d. eimt
56. low levels of uncertainty (risk) are associated with .
a. stocks
b. stock options
c. higher potential returns
d. lower potential returns
57. government securities would appear on a commercial bank's balance sheet as ______.
a. an asset
b. reserves
c. part of net worth
d. a liability
58. a major problem with a fixed exchange rate system is that when countries run foreign trade deficits, ______.
a. there is no self-correcting mechanism
b. currency values become unstable
c. the value of the reserve currency declines
d. world inflation increases
59. in a particular economy banks are required to keep 25 percent of all deposits in the form of reserves; this gives a credit-creation multiplier of ______.
a. four
b. three
c. two
d. five
60. regulation of the money supply and financial markets is referred to as ______.
a. fiscal policy
b. income policy
c. monetary policy
d. budgetary policy
61. when a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .
a. imports automatically increase
b. currency automatically depreciates
c. exports automatically decline
d. currency automatically appreciates
62. which of the following statements is not true of accounting? ______.
a. accounting is language of business
b. the user of accounting includes business, government, nonprofit organizations and individuals.
c. accounting is useful for decision making
d. accounting is an end rather than a means to an end
63. the term foreign exchange is best defined by the following statement: it is ______.
a. the rate of exchange between two currencies
b. synonymous with currency exchange
c. the place in which foreign currencies are exchanged
d. an instrument such as paper currency, note, and check used to make payments between countries
64. what is asset allocation? ______.
a. buying assets of different types, risks, and potential returns
b. buying assets with more than one brokerage account
c. the ability to buy mutual funds
d. buying stocks for the long term
65. external users of financial accounting information include all of the following except .
a. suppliers
b. line managers
c. general public
d. creditors
66. capm is short for .
a. capital asset pricing model
b. cash added price matrix
c. capital asset pricing matrix
d. cost and price model
67. liquidity measures the ______.
a. value of an asset
b. ease with which an asset can be exchanged
c. usefulness of an asset
d. economic and monetary reliability of an asset compared with other assets
68. in a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.
a. documents…… the credit
b. merchandise…… the contract
c. documents…… the contract
d. merchandise……the buyer ordered