金融英语：FECT-1单选题（一）1. Which of the following is not a function of money? _.A. To act as a medium of exchange B. To act as a unit of accountC. To act as a store of valueD. To provide a double coincidence of wants E. To act as a means of payment 2. The price in the foreign exchange market is called _.A. the trade surplusB. the exchange rate C. the money price D. the currency rate 3. Market risk refers to the risk of_.A. financial prices fluctuations B. defaultC. fraudD. deferred payments 4. Which of the following is not among the generally accepted accounting principles? _.A. Cash basis B. PrudenceC. Consistency D. Going concern E. Money measurement.5. What is a documentary letter of credit? _.A. A conditional bank undertaking to pay an exporter on production of stipulated documentation B. A method of lending against documentary securityC. An international trade settlement system biased in favour of importersD. All of the above 6. Holding a group of assets reduces risk as long as the assets _.A. are perfectly correlated B. are completely independentC. do not have precisely the same pattern of returns D. have a correlation coefficient greater than one 7. An amount, payable in money goods, or service, owed by a business to a creditor, is known as a/an .A. liability B. debtC. equityD. asset8. What function is money serving when you buy a ticket to a movie? _.A. store of value B. a medium of exchange C. transaction demand D. a unit of account 9. If foreigners expect that the future price of sterling will be lower, the _.A. supply of sterling will increase, demand for sterling will fall, and the exchange rate will fall B. supply of sterling will increase, demand for sterling will rise, and the exchange rate may or may not increaseC. supply of sterling will fall, demand for sterling will increase, and the exchange rate will riseD. supply of sterling will fall, demand for sterling will fall, and the exchange rate may or may not fall 10. The documentary collection provides the seller with a greater degree of protection than shipping on _.A. open account B. banks letter of guaranteeC. bankers draft D. documentary credit 11. Which of the following statements is not true of central banks? _.A. They pay the governments salaries B. They always undertake the regulation of the banking system C. They are always the lender of last resortD. None of the above 12. When GBP/USD rate goes from 1.6150 to 1.8500, we say the dollar _.A. appreciates by 12.70% B. depreciates by 14.55%C. depreciates by 12.70% D. appreciates by 14.55% 13. According to diversification principle in investment, suppose you invest Stock X and Stock Y with equal funds, which of the following is not true? _.A. If X and Y are totally independent with each other, the risk of the portfolio is reduced B. If X and Y are perfectly negatively correlated, the risk of the portfolio is perfectly offsetC. If X and Y are perfectly positively correlated, the risk of the portfolio is neither reduced nor increasedD. If X and Y are perfectly negatively correlated, the risk of the portfolio is neither reduced nor increased 14. These are four main methods of securing payment in international trade:(1) payment under documentary credit(2) open account(3) collection, that is document against payment or acceptance of a bill of exchange(4) payment in advanceFrom an exporters point of view, the order of preference is _.A. (4) , (2) , (3) , (1) B. (4) , (1) , (3) , (2) C. (4) , (3) , (1) , (2) D. (2) , (4) , (1) , (3) 15. The main liability on a bank balance sheet is _.A. deposits B. capital and reservesC. loans and overdrafts D. cash 16. _ shows that net income for a specified period of time and how it was calculated.A. The income statement B. The capital statementC. The accounting statementD. The statement of financial condition 17. Why must the liabilities and assets of a bank be actively managed? _.A. Because assets and liabilities are not evenly matched on the same time scale B. Because assets and liabilities are evenly matchedC. Because the interbank market uses LIBORD. Because assets and liabilities can be underwritten 18. If the expected returns of two risky assets have a perfect negative correlation, then risk .A. is increased B. falls to zero C. is unaffected D. is reduced by one-half 19. A possible disadvantage of freely fluctuating exchange rates with no official intervention is that .A. some nations would experience continual deficits B. the exchange rates may experience wide and frequent fluctuations C. nations would no longer be able to undertake domestic policies designed to achieve and maintain full employmentD. nations would need a larger supply of international reserves than otherwis