单选题 Passage 2 Valuation of stock prorides the most common form of description. Stock is generally valued at cost or market value, whichever is the lower, as otherwise profit is shown which may never materialize. It is no more than prudent to err on the side of caution, as some stock may deteriorate or, in the course of time, become unsaleable, and care should be taken to see that in no event must there be an overvaluation. Naturally an undervaluation of closing stock keeps down the profit and, of course, the tax payable of such profit. The closing stock of the first year becomes the opening stock of the second year, and, if the stock has been greatly undervalued, then the closing stock of the second year will have to be very greatly undervalued if a similar gross profit ratio is to be shown for both years. For example, if stock at the close of the first year is undervalued by ￡ 1,000, the profit will likewise be kept down by ￡ 1,000. In the second year, if both the opening and closing stock are undervalued by ￡ 1,000, the profit will be unaffected and will be the actual profit earned. If it is desired to make the profit ￡ 1,000 less than actual, in line with the first year, then the closing stock will have to be undervalued by another ￡ 1,000, making the stock evaluation ￡ 2,000 less than it actually is. The proprietor's problems are only just beginning, because, to keep the same ratio of gross profit to sales, the stock will have to be undervalued more and more each year and the build-up will mean that in the course of time too much stock will be held in the business and the proprietor will not know what to do with it. If the excess is sold against cheques, the cheques will show in a banking account; it is not easy to sell bulk stock for cash at its full market value. As so many people have found, undervaluation of stock causes a great deal of difficulty. In the present instance, it is not any help for the customer to say that his stock is worth ￡ 42, 000 unless it is his intention to restrict purchases and bring the excess stock back into the account and therefore increase his profit and his tax. By comparing the gross profit ratio over a few years and by careful questioning, it should be fairly straightforward for a banker to judge the true position about customer's stock valuation methods, and to consider if they alter in substance the trading figures produced.

单选题When the collecting bank receives from the presenting bank the documents for collecting, it ____ ?

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. Then mark the corresponding letter on the ANSWER SHEET with a single line through the center.

单选题 Passage 3 There are two main types of stocks: common stock and preferred stock. Common stock is, well, common. When people talk about stocks in general they are most likely referring to this type. In fact, the majority of stock issued is in this form. Common shares represent ownership in a company and a claim (dividends) on a portion of profits. Investors get one vote per share to elect the board members, who oversee the major decisions made by management. Over the long term, common stock, by means of capital growth, yields higher returns than almost every other investment. This higher return comes at a cost since common stocks entail the most risk. If a company goes bankrupt and liquidates, the common shareholders will not receive money until the creditors, bondholders, and preferred shareholders are paid. Preferred stock represents some degree of ownership in a company but usually doesn't come with the same voting fights. (This may vary depending on the company. ) With preferred shares investors are usually guaranteed a fixed dividend forever. This is different from common stock, which has variable dividends that are never guaranteed. Another advantage is that in the event of liquidation preferred shareholders are paid off before the common shareholder (but still after debt holders). Preferred stock may also be callable, meaning that the company has the option to purchase the shares from shareholders at anytime for any reason (usually for a premium). Some people consider preferred stock to be more like debt than equity. A good way to think of these kinds of shares is to see them as being in between bonds and common shares. Common and preferred are the two main forms of stock ; however, it's also possible for companies to customize different classes of stock in any way they want. The most common reason for this is the company wanting the voting power to remain with a certain group; hence, different classes of shares are given different voting rights. For example, one class of shares would be held by a select group who are given ten votes per share while a second class would be issued to the majority of investors who are given one vote per share. When there is more than one class of stock, the classes are traditionally designated as Class A and Class B. Berkshire Hathaway (ticker: BRK), the company of Warren Buffett (one of the greatest investors of all time), has two classes of stock. The different forms are represented by placing the letter behind the ticker symbol in a form like this: "BRKa, BRKb" or "BRK. A, BRK. B".

单选题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

单选题A.toSmooththemoneyflow.B.toaddmoneysupplytotheworld.C.togiveIMFmembersprivileges.D.togiveWorldBankmembersprivileges.

单选题In most countries banks must acquire a license in order to undertake banking business.

单选题 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.{{B}}Passage One{{/B}} The BIS is the central bankers' central bank. It is very discreet, and very influential. It was founded in 1930 to act as a trustee for the loans associated with the Young Plan for Germany Reparations. The first members of the bank were the central banks of Belgium, France, Germany, Italy, Japan and the United Kingdom, together with three private U. S. banks. The Federal Reserve Bank subsequently became a member alone with all the major European central banks. Current membership consists of 30 central banks, of which 25 are European plus the United States, Canada, Australia, and South Africa. (The BIS was unique in having Alhania and South Africa as co-member. ) The board of directors is composed of the governors of the central banks of Belgium, France, Germany, Italy, and the United Kingdom, together with co-opted directors from among the governors of those member central banks that do not have a representative on the board. The BIS has three main functions. It acts as a bank, primarily as a central bankers' bank; it acts as a gathering place for central hankers, a vehicle for international monetary cooperation; and it acts as trustee for various international loans. The BIS's role as an intermediary provides a number of advantages to other central banks. The first is anonymity : sometimes it is not convenient for a central bank to be seen to withdraw its funds from the market. The second is risk spreading: a deposit with the BIS is very safe since the bank is highly liquid. Finally, deposits placed with the BIS can usually be withdrawn at very short notice.

单选题If a major borrower gets in trouble because of inability to ______ a loan, the bank may find itself in serious trouble as well.

单选题You have to pay high ______ on an estate. A. trust funds B. taxes C. returns

单选题Which of the following is not the distinction between bonds and stocks? A. Bonds are debt whereas stocks are equity. B. The bondholder does not share in the profits if a company does well, while the shareholder does. C. A sock's price fluctuates while that of a bond is fixed. D. In the case of bankruptcy, a bondholder will get paid before a shareholder does.

单选题Credit and credibility In pursuit of a new source of profit, many of the entities that call themselves banks have strayed far from the business of taking and safeguarding the public's deposits and running the payment system. Competition has forced banks to range so far, in so many directions and at such a lick that, perhaps for the first time since the days of Shylock, it is necessary to stop to ask quite what is a bank. The gales of change will leave many banks looking different in form and substance from a decade ago. Banking is traditionally thought of as one business, not least of all by bankers. Yet, as Mr. Thomas Steiner of Mckinsey, a management consultancy, points out, it comprises around 150 different lines of business. There is little that is special about many of them. In future, plenty of these activities will be done by others, either instead of or as well as by banks. On the other side of the coin, many of the things that other financial institutions now do will be- come the business of some banks. Banking will still be a principality in the kingdom of financial services, but its heartland will shrink. Outsiders will move in. Much of the native population will settle elsewhere. The bankers' diaspora will be wide. Crossing the divides This change is already seen in America, Europe and Japan. American and Japanese commercial banks are pushing their merchant banking as deeply into the securities business as they feel the regulators will let them get away with. Citicorp and J. P. Morgan have all been al- lowed to set up securities - underwriting affiliates slipping through the Section 20 loophole of the legislation separating commercial and investment banking. The two businesses have become so interwoven that, as Mr. Dennis Weatherstone, president of J. P. Morgan, says, we really have to rip the fabric to separate the threads. For their part, investment banks and securities houses have become direct suppliers of credit to wide range of financial and non - financial customers. They offer investment products that are virtual substitutes for interest - earning demand deposits. They own and operate non - bank banks that give access to payment systems. In short, they have become providers of services that commercial banks have traditionally offered. Though forbidden from commercial banking in their home market, American and Japanese investment banks and securities houses happily run such banking affiliates abroad. It is not only the boundaries between the banking and securities industries that are becoming blurred. So are those with insurance and commerce. Bankers are becoming everyday occurrences. Japan's Nippon Life joined the act in February by taking a 4% stake in Spain's Banco Bilbao Vizcaya for 250m. At home, Japanese insurers already have affiliations with banks, through the web of cross - shareholdings of the big industrial groups. America's third biggest re- tail stock broking firm, Pru - Bache, has dipped in the waters of banking by buying a small bank in Georgia and more recently a thrift. Everywhere ordinary commercial firms are making deep insurance into financial services. Retailers and manufacturers own securities companies, insurance firms' thrifts and non - bank banks. They offer a wide range of credit, investment - banking and insurance services, to companies and individuals alike.

单选题For a note payable to be paid in installments within 5 years, which of' the following statements is correct?

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单选题The markets for treasury bills in most developed countries have many different buyers and sellers.

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单选题FredPerry,CFA,purchased$100,000ofanewlyissuedTreasuryinflationprotectionsecuritybasedonthefollowingcharacteristicsandinformation.Thecouponpaymentattheendofoneyearisclosestto:()

单选题Which of the following is not true of forfaiting? ______.

单选题The normal downward slope of demand curves is necessarily explained by: （　　）