单选题Liquidity risk arises from the inability of a bank to accommodate unexpected decreases in (21) or to fund increases in (22) . When a bank has (23) liquidity, it cannot obtain sufficient funds, either by increasing liabilities or by (24) assets promptly, at a reasonable cost, thereby affecting profitability. In extreme cases, insufficient liquidity cam lead to the (25) of a bank.

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单选题Money is file most liquid asset of all because it is the medium of exchange; it does not have to be ______ into anything else in order to make purchases.

单选题{{B}}Section One{{/B}} Directions: There are three 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 1 The credit created for international settlement among banks not only provides a sense of security for the traders involved, but also a reliable source of finance for foreign trade where required. The credit created, in general, favors the exporter. In order to reduce the possible risk, the exporter usually insists on the buyer establishing a credit in his favor before shipment is unloaded. There are generally several types of credits. A "confirmed credit" guarantees payment to the beneficiary, provided that the credit terms and conditions are met and the standing of the advising bank in the beneficiary's country is sound. A "revocable credit" may be cancelled at any time up to the moment the advising bank pays. This type of credit is the least favorable to the exporter. There is a risk that the goods may be shipped, and the credit revoked before documents are presented to the advising bank. An "irrevocable credit" may not be cancelled or even amended without the consent of all the parties involved. This type of credit guarantees that no single party will revoke the contract already signed. With the credit arrangement, the issuing bank agrees to pay the advising bank, and the advising bank pays the exporter according to the terms of the documents which appear to fulfill the conditions of the credit. Banks, however, are not bound by, and therefore, not concerned with the underlying sales contract on which the credit requirements are based. As long as the documents are in good order and there are no apparent problems with the process, the buyer is still responsible for payment to the issuing bank although the goods received may be of inferior quality to those ordered.

单选题An initial public offering refers to the first issue of stocks and bends to the public.

单选题In order to calculate the monthly payments on your loan, the bank adds the interest to the ______ and divides the total by the number of months.

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单选题A credit may be advised to a beneficiary through another ban (the advising bank) without engagement on the part of the advising bank, but that bank, if it elects to advise the credit. Shall ______ ?

单选题Although the company showed a profit, the balance sheet looks increasingly ______.

单选题When a country’s currency appreciates, the country’s goods abroad become ______ and foreign goods in that country become ______.

单选题ABC company is the beneficiary of a confirmed irrevocable letter of credit. bank (s) will assure the company that it will be paid. A. One B. Two C. Three D. None

单选题A business operating cycle is ______.

单选题{{B}}Section One{{/B}} 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.

单选题A business has the following figures for the year ended 31 December 2000 ＄ Stock at beginning of period 85,000 Stock at the end of period 90,000 Purchases 300,000 Purchases return 25,000 Cost of goods sold is ______. (a)＄295,000 (b)＄270,000 (c)＄305,000 (d)＄280,000

单选题Not all of those _____ takeovers continue to run the business they have bought.

单选题BPart One/BDirections: In this section, you will hear some 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 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.

单选题To a banking organization, effective risk management and internal control can help ensure ______.

单选题In February 2001, when the currency union fell ________, the official reserves had fallen to less than $2400 million.

单选题{{B}}Passage Three{{/B}} Foreign exchange is by definition foreign to the holder; otherwise, it would be domestic exchange or in modem practice, local currency and legal tender. Foreign exchange typically is not legal tender and is therefore not acceptable in exchange for goods and services to whom it is being offered; hence, the desire to exchange it into something closer to home in terms of acceptability. Foreign exchange markets are nearly always markets that convert issues of foreign money for local units. The New York foreign exchange market, for example, is essentially a market for exchange foreign currencies against the US dollar. It is possible in New York to exchange French francs for Swedish kronor, but the normal practice would be to sell French francs for U.S. as a first step and then to sell US dollars and buy Swedish kronor as a second step in order to complete the transaction. Markets in other countries would be similar in structure and mechanical operation.