is also called bridge loan. ( ) A:Short-term loan B:Credit card C:Non-installment loan D:Amortization loan 答案: Non-insta

In terms of balance-of-payments account, which of the following would be recorded as a debit entry in the U.S. BOP?( )
A:Exports of services
B:Purchase of the U.S. Treasury bonds by non-residents
C:Exports of merchandise
D:An increase of the deposit in a U.S. resident’s account at a foreign bank
答案: An increase of the deposit in a U.S. resident’s account at a foreign bank

The balance of payments is a statistical record which measures the total value of __. ( )
A:all economic and financial transactions between the residents and non-residents for a given period of time
B:a country’s capital inflows and outflows at a particular date in a given year
C:a country’s foreign trades between the residents of a country and its non-residents for a given period of time
D:a country’s foreign exchange reserves in a certain period of time
答案: all economic and financial transactions between the residents and non-residents for a given period of time

The trade deficit means that___. ( )
A:residents are producing more goods than they are consuming
B:residents are borrowing more funds than they are lending
C:residents are receiving more payments than they are making
D:residents are importing more goods than they are exporting
答案: residents are importing more goods than they are exporting

In the short-term, a balance of payments surplus boosts economic growth. ( )
A:错
B:对
答案: 对

Balance of payments ( )
A:provides detailed information concerning the demand and supply of a country’s currency
B:is defined as the statistical record of a country’s international transactions over a certain period of time presented in the form of a double-entry bookkeeping
C:can be used to evaluate the performance of a country in international economic competition
D:is a country’s capital inflows and outflows at a particular date in a given year
答案: provides detailed information concerning the demand and supply of a country’s currency
,is defined as the statistical record of a country’s international transactions over a certain period of time presented in the form of a double-entry bookkeeping
,can be used to evaluate the performance of a country in international economic competition

A country’s international transactions can be grouped into_three main types.( )
A:official reserve account
B:current account
C:capital account
D:medium term account
答案: official reserve account
,current account
,capital account

Since the balance of payments is presented as a system of double-entry bookkeeping, __.( )
A:every transaction must be recorded twice
B:None of the above
C:every credit in the account is balanced by a matching debit
D:every debit in the account is balanced by a matching credit
答案: every transaction must be recorded twice
,every credit in the account is balanced by a matching debit
,every debit in the account is balanced by a matching credit

The transaction a U.S. embassy in Beijing pays salaries to its American staffs is included in China’s balance-of-payments account. ( )
A:错
B:对
答案: 错

The demand for a country’s exports impacts the value of its currency. ( )
A:错
B:对
答案: 对

Why would a company issue commercial paper? ( )
A:All are right.
B:Because they can essentially print money.
C:To finance short term things.
D:To finance large projects and expansions.
答案: To finance short term things.

Eurocurrency deposits are ( ).
A:bank deposits designated in the common currency of the European Community
B:held by banks in London only
C:bank deposits in dollars
D:held by banks in one country in the currency of another
答案: held by banks in one country in the currency of another

What is a major advantage of money market instruments? ( )
A:They have higher returns than most savings accounts.
B:They are relatively low risk.
C:All are right.
D:Most instruments offer good liquidity.
答案: All are right.

Borrowers obtain funds from lenders by selling to lenders newly issued claims in the financial markets, eg. stock market or bond market, and we call this way ( ).
A:financial market
B:direct finance
C:financial instrument
D:indirect finance
答案: direct finance

The instruments traded in money markets have some common features, including ( ).
A:more liquid and safer
B:large denominations
C:short-term maturities
D:low default risk and low yields
答案: more liquid and safer
,large denominations
,short-term maturities
,low default risk and low yields

On the international level, there are two pillars underpinning the RMB internationalization, they are ( ).
A:China’s products
B:China’s markets
C:the creditworthiness of China as the world’s second-largest economy
D:China’s gold reserves and foreign exchange reserves
答案: the creditworthiness of China as the world’s second-largest economy
,China’s gold reserves and foreign exchange reserves

Based on the maturity of the securities traded in the market, financial markets can be classified into primary market and secondary market. （ ）
A:错
B:对
答案: 错

T-bills are short-term securities that mature in one year or less from their issue date. （ ）
A:对
B:错
答案: 对

CDs offer a slightly lower yield than T-bills because the bank’s default risk is lower. （ ）
A:错
B:对
答案: 错

Repos are short-term collateralized loans used by securities dealers and other market participants as a source of low cost financing method. （ ）
A:错
B:对
答案: 对

An important financial institution that assists in the initial sale of securities in the primary market is the ( ).
A:central bank
B:investment bank
C:joint-equity bank
D:commercial bank
答案: investment bank

The New York Stock Exchange is the most important example of a ( ) financial market.
A:second
B:secondary
C:first
D:primary
答案: secondary

Capital markets are more frequently used for ( ) assets, which are those with maturities of greater than one year.
A:long-term
B:medium-term
C:short-term
D:medium-and long-term
答案: long-term

When a company issues public stock newly to investors through underwriting by investment bankers, this sale is called ( ).
A:a follow-on offering
B:an initial public offering
C:a listing
D:a private placement
答案: an initial public offering

The financial instruments used in capital markets include ( ), but the instruments used in the money markets include deposits, T-bills and bills of exchange.
A:repos
B:commercial papers
C:bonds
D:stocks
答案: bonds
,stocks

Private placement has advantages over other equity financing methods, including ( ).
A:reduced time
B:the ability to remain a private company.
C:reduced cost
D:less burdensome regulatory requirements
答案: reduced time
,the ability to remain a private company.
,reduced cost
,less burdensome regulatory requirements

Public offering is also called direct issuing as securities are not issued through intermediaries. （ ）
A:对
B:错
答案: 错

An organized securities exchange is a location with a trading floor where all of the trading takes place under the rules formulated by the exchange. （ ）
A:错
B:对
答案: 对

An IPO is a big step for a company. It provides the company with access to raising a lot of money. This gives the company a greater ability to grow and expand. （ ）
A:错
B:对
答案: 对

An is the issuance of additional shares of stock after the issuing company has already had a follow-on offering. （ ）
A:对
B:错
答案: 错

A stockholder（ ）.
A:enjoys a priority over bondholders when the firm is in trouble
B:faces less risk than bondholder and therefore is more likely to make a great deal of money
C:earns a return from stock price increase or dividends
D:owns a percentage interest in a firm and therefore is a creditor of the firm
答案: earns a return from stock price increase or dividends

That a stockholder has the right of a residual claimant means（ ）.
A:stockholders have a claim on assets or income left over after all other claimants are satisfied
B:stockholders have no claim on assets left over after all other claimants are satisfied
C:all of the above
D:stockholders have a claim on assets before all other claimants are satisfied
答案: stockholders have a claim on assets or income left over after all other claimants are satisfied

Stocks（ ）.
A:have no maturity
B:guarantee their holders’ interest when the firm is in trouble
C:have a longer maturity than bonds
D:enable their holders to get rich even if the firm does not do well
答案: have no maturity

In a general sense the term negotiable securities is applicable to many forms of negotiable instruments including checks, bills of exchange, and bills of lading and so on.（ ）
A:对
B:错
答案: 对

An equity holder is a residual claimant because they have no right to the management and profit of the company. （ ）
A:错
B:对
答案: 错

Preferred stock is a special equity security that has properties of both an equity and a debt instrument and is generally considered a hybrid instrument.（ ）
A:对
B:错
答案: 对

A callable preferred stock means that the holder has the right to sell the stock back to the issuer at a certain price.（ ）
A:错
B:对
答案: 错

The potential profits from owning common stocks come primarily in two forms: dividends and capital gains when the stock price rises.（ ）
A:错
B:对
答案: 对

Zero coupon bonds do not pay interest until the end of the maturity date. （ ）
A:错
B:对
答案: 错

Floating-rate bonds are riskier than fixed rate bonds especially when inflation rate is high. （ ）
A:对
B:错
答案: 错

The main asset on a bank balance sheet is . ( )
A:capital and reserves
B:deposits
C:loans and overdrafts
D:cash
答案: loans and overdrafts

is also called bridge loan. ( )
A:Short-term loan
B:Credit card
C:Non-installment loan
D:Amortization loan
答案: Non-installment loan

In addition to financing the agricultural, commercial and industrial activities of the nation, commercial banks facilitate consumption by making loans. ( )
A:consumption
B:Fixed
C:consumer
D:short-term
答案: consumer

are not confined to buy or build real estate. ( )
A:Construction and development loans
B:Residential mortgage loans
C:Commercial real estate loans
D:Home equity loans
答案: Home equity loans

Under five-category loan classification, has potential weaknesses that deserve management’s close attention. ( )
A:substandard
B:doubtful
C:Loss
D:special mention
答案: special mention

The current ratio provides a more conservative measure of aggregate liquidity than quick ratio.（ ）
A:错
B:对
答案: 错

Equity Multiplier measures the degree of financial leverage employed. The greater is the degree of leverage, the greater are the returns or risks to shareholders.（ ）
A:错
B:对
答案: 对

Non-mortgage consumer loans are usually used to finance the purchase of durable goods.（ ）
A:错
B:对
答案: 对

Collateral is the lender’s primary source of repayment or security in the case of default.（ ）
A:对
B:错
答案: 错

Pricing of interest rate of international syndicated loan is basically the federal funds rate plus a spread.（ ）
A:错
B:对
答案: 错