金融英語五套題及答案

Test1

PartOne

SectionOne(10%)

Listening

Directions:Inthissectionyouwillhear10shortstatements.Eachstatementwillbespokenonlyonce.Aftereachstatementthere

willbeapause.Duringthepause,youmustreadthefoursuggestedanswersmarkeda,b,candd,anddecidewhichisthebest

answer.Nowyouwillheartheexample:

ShewenttothebankwithMr.Smith.

Youwillread:

A.Shewenthome.

B.ShelikedMr.smith.

C.Shewenttothebank.D.ShewenttoMr.Smith'shouse.

StatementC,"Shewenttothebank"istheclosestinmeaningtothestatement"ShewenttothebankwithMr.Smith."Therefore,

youshouldchooseanswerC.Nowlistentothestatements.

1.

A.Thecentralbankcontrolsmanyfactorsthataffectthesuccessofbankingsupervision.

B.Thesuccessofbankingsupervisiondependsonthecontrolsofthecentralbank.

C.Thesuccessofbankingsupervisionreliesonmanyfactorsthatarenotunderthecontrolofthecentralbank.

D.Manyfactorsunderthecontrolofthecentralbankresultinthesuccessofbankingsupervision.

2.

A.Youcannotsignyournameontheupperleftcornerthatdoesnotcomplywiththeagreement.

B.Yoursignaturedoesnotagreewiththespecimensignatureontheupperleftcorner.

C.Thesignatureontheupperleftcornerisnotthecountersigninthe

agreement.D.Youcannotagreewiththesignatureontheupperleftcorner.

3.A.TheChinesebankswillnotcometocompetewiththeforeignbanksin

Renminbibusiness.

B.ForeignbankswillbeallowedtodoRenminbibusinesswhichisachallengetotheChinesebanks.

C.ItwillbearealgreatchallengetotheChinesebankswhentheforeignbankshavetherighttodoRenminbibusiness.

D.InordertohaverealcompetitionwiththeChinesebanks,foreignbanksshouldbeallowedtodoRenminbibusiness.

4.

A.Iremittedthemoneytoyouafterthesaleofmystocks.

B.YourbankaccounthadbeencreditedwiththeremittancesinceIsoldmyshareslastweek.

C.ThemoneyhadalreadybeencreditedtoyouraccountlastweekafterIsoldmyshares.

D.ThemoneyhadnotbeenremittedtoyousinceIfailedtosellmystockslastweek.

5.A.Thebankmakesprofitsonlyfromitsownmoney.B.Thebankmakesprofitsnotonlyfromthedepositsbutalsofromits

ownmoney.C.Thebankmakesprofitswithspecialobligationstodepositors.D.Thebankhasspecialobligationtomakeprofits.

6.

A.Wethankyouforyourdoingkindnesstous.B.Wehopeyousendusyourcheckassoonaspossible.

C.Wethankyoubecauseyouprovideusconvenienceinchecking.D.Youwillhavetopayus$50,000.

7.A.TheChineseeconomistsmadeaproposalthatbanks'savingsinterestratesshouldfurtherbelowered.

B.TheChineseeconomiststhoughtbanks'savingsinterestratesshouldbeimproved.

C.TheChineseeconomistsbelievedthatbanks'savingsinterestratesshouldbemaintained.

D.TheChineseeconomistssuggestedthatbanks'savingsinterestratesshouldbekept.

8.

A.Wearethecreditholders.B.Wearethebankwhocanencashthecard.

C.Wearethebankwhocanstopyourlostcard.D.Wearethebankwhocanfindyourlostcard.

9.A.Intheforeignexchangemarket,exchangeratesarequotedbythesellersandbuyers.B.Intheforeignexchangemarket,

exchangeratesarequotedbycommercialbanks.C.Intheforeignexchangemarket,sellingandbuyingofforeignexchangedecide

exchangerates.D.Intheforeignexchangemarket,exchangeratesarefixedbygovernments.

10.

A.Thebankhastherighttochargeyoufeesifyourcheckhasbounced.

B.Thebankwillnotchargeyouanyservicecommissionevenifyourcheckreturned.

C.Noonereservestherighttoimposeaservicechargeforreturnedcheques.

D.Thebankhastherighttoimposeachargeforencashedcheques.

SectionTwo(10%)

Directions:Inthissection,youwillhear10shortconversations.Attheendofeachconversationaquestionwillbeaskedabout

whatwassaid.Theconversationsandquestionswillbespokenonlyonce.Duringthepause,you

answersmarkeda,b,c,andd,anddecidewhichisthebestanswer

Nowyouwillhear:

mustreadthefoursuggested

M:DoesourbankhaveadirectcorrespondentrelationshipwiththeBradalys'Bank?

W:No,wedon't.SowehavetoadvisethisL/Cviaanotherbank.

Q:Whichofthefollowingisright?

Nowyouwillread:

A.WecanadvisethisL/CtotheBradlays'Bank.B.TheBradlays'Bankisourcorrespondent.

C.TheL/Chastobeadvisedbyathirdbank.D.WeshouldadvisethisL/Cbyourselves.

FromtheconversationweknowthatwehavetoadvisethisL/Cviaanotherbank.ThebestanswerisC.Thereforeyoushould

chooseanswerC.

11.A.Heraccountnumberis60789410B.Heraccountnumberis60798410

C.Heraccountnumberis60798401D.Heraccountnumberis60789140

12.

13.A.1.89%B.1.98%C.8.19%D.none

14.A.toopenanaccountwiththebankB.toexchangemoney

C.tocheckiftheremittancehasarrivedD.toremitsomemoneytoherbrotherTonyWaller

A.inthesafeB.inthedrawerC.onthedeskD.inthebox

15.

16.

17.

18.

A.employeeandbossB.brokerandbankclerkC.twobankclerksD.bankclerkandcustomer

A.8hours

A.onemonth

B.10hoursC.12hours

D.24hours

D.halfamonth

B.twelvemonthsC.sixmonths

A.drawmoneyfromheraccountthroughATM.B.writehersecretcodeonthecard.

C.forgetherpassword.D.asksomebodytopickuphercard.

19.

20.

A.US$24,580

B.US$28,450C.US$45,280

D.US$25,480

A.Specialriskswillbeexcluded.B.Youhavetopaymoremoneyfortheinclusionofallrisks.

C.Exclusionofthespecialrisksmeansmoremoneyyouhavetopay.

D.Youhavetopaymorepremiumtoincludeaspecialrisk.

SectionThree(10%)

Directions:Inthissection,youwillhear3shortpassages.Attheendofeachpassageyouwillhearsomequestionsaboutwhatwas

said.Thepassagesandquestionswi1lbespokenonlyonce.Duringthepause,youmustreadthefoursuggestedanswersmarkeda,

b,c,andd,anddecidewhichisthebestanswer

Questions21--23arebasedonpassage1

21.

22.

23.

A.three

A.one-dollarbillB.five-dollarbillC.ten-dollarbill

A.bychecksandfundtransfersB.byCHAPSandfundtransfers

B.fourC.five

D.six

D.twenty-dollarbill

C.byCHIPSandfundtransfersD.bySWIFTandfundtransfers

Questions24-26arebasedonpassage2

24.

workers.

25.A.becausetheyaffectconsumers'willingnesstospendorsave.

B.becausetheyaffectbusinesses'investmentdecisions.C.becauseinterestratesarethecostofborrowings.D.bothaandb.

26.A.mortgageinterestratesB.carloanrates

A.Theywillbuyhouses.B.Theywillbuycars.C.Theywillpostponebuildinganewplant.D.Theywillhiremore

C.interestratesonmanydifferenttypesofbondsD.currentinterestrates

Questions27-30arebasedonPassage3

27.

28.

A.corporate

B.interbankC.mortgage

D.syndicate

A.payallattentionstoaspecificareaoflendingB.considersomeonemoreimportantthantheother

C.handleloanapplicationsbasedonhardandfastruleD.trytobuildupawell-balancedloanportfolio

29.

30.

A.prudence

B.profitabilityC.liquidity

D.safety

A.toensurehealthygrowthforthebankB.tooutperformthecompetitioninfinancialindustry

C.tomaketheprofitsD.toachievespecificbusinesstargets

Parttwo

Reading

SectionOne(10%)

Directions:Therearetenstatementsinthissection.ForeachstatementtherearefourchoicesmarkedA，B，C，D.Youshould

choosethebestanswer.

31.Ifthelessormakesanequityinvestmentequalto20%oftheequipment'soriginalcost,andborrowstheremaining80%froma

long-termcreditor,andwritesanoncancelableleasefortheequipment,suchleaseiscalleda___________.

A.operatinglease

B.leveragedlease

C.direct-financingleaseD.sales-typelease

32.Theinterestrateforborrowingfundsfrominter-bankmarketiscloseto,butalwaysslightly____________theratethatis

availablefromthecentralbank.

A.lowerthanB.higherthanC.ashighas

D.notashighas

33.___________isafinancialmarketinwhichsecuritiesthathavebeenpreviouslyissuedcanberesold.

A.AprimarymarketB.AsecondarymarketC.AissuingmarketD.Thecapitalmarket

34.OfthechallengingissuesinInternetbanking,whichpeoplecaremost,

is_________.

A.theprovisionofasecureplatformforbankingtransactions

B.whethermanagementhasthecreativityandvisiontoharnessthetechnology

C.howtodeliverhigh-qualityproductsforthecustomers'convenience

D.whethermanagementhastheabilitytosatisfycustomers'continuallychangingfinancialneeds

35.FromaChineseBank'spointofview,thecurrencyaccountwhichitmaintainsabroadisknownas_______,whileaRMB

accountoperatedinChinaforaforeignbankistermed________.

A.avostroaccount;anostroaccountB.amirroraccount;anostroaccount

C.anostroaccount;avostroaccountD.avostroaccount;amirroraccount

36.If__________,suchasituationiscalledbreak-even.

A.contributionmargin=fixedcostsB.contributionmargin=totalcostsC.profit=expenseD.salesrevenue=variablecost

37.Foreign-fundedenterprisesmayretaintheirexportearningsifthoseearnings_______.

A.getafterSAFEapprovesB.willberemittedabroadC.willbeinvestedinlocalarea

D.donotexceedthelimitsetbytheSAFE

38.BOTisanabbreviatedformof_________.

A.build-or-technologyB.build-operate-transferC.build-operate-technologyD.benefit-operate-transfer

39._________isthefoundationofprivateaccounting,whichanalyzesabusiness'scoststohelpmanagerscontrolexpenses.

A.BudgetingB.ManagementinformationsystemC.InternetauditingD.Costaccounting

40.Underwritingsimplymeansthattheinvestmentbankerpromisesto________thesecurities.

A.buy

B.sell

C.designD.issue

SectionTwo(10%)

Directions:Thereare10blanksinthefollowingpassages.ForeachblankstherearefourchoicesmarkedA,B,C,D.Youshould

choosethebestanswer.

PassageOne

Anotherwayofdistinguishingmarketsisonthebasisofthe_____41_______ofthesecuritiesineachmarket.The__42______

isafinancialmarketinwhichonlyshort-termdebtinstrumentsaretraded.The___43_____isthemarketinwhichlonger-termdebt

andequityinstrumentsaretraded.Thesecuritiesintheformerareusuallymorewidelytradedthanthoseinthelatterandsotendto

be____44______.Inaddition,short-termsecuritieshave_____45______fluctuationsinpricesthanlong-termsecurities,making

themsaferinvestments.

41.A.volumeB.maturityC.issuingprocedureD.kind

42.A.moneymarketB.capitalmarketC.primarymarketD.secondarymarket

43.

A.moneymarketB.capitalmarketC.primarymarketD.secondarymarket

44.A.moresolventB.moreriskC.moreliquidD.safer

45.A.volatileB.violentC.widerD.smaller

PassageTwo

Indocumentarycreditoperations,allpartiesconcerneddealin___46____andnotin____47____.Thebankscheck

exclusivelyonthebasisofdocuments___48____tothemtoseewhetherthetermsofthecredithavebeenfulfilled.Theyare

____49_____toverifywhetherthegoodssuppliedactuallyagreewiththosespecifiedinthecredit,____50____differences,say,

betweenthegoodsinvoicedandthoseactuallydelivered,noranswerabletothebuyers'complaintsaboutthesedifferences.Itisup

tothebuyersandsellerstosettlequestionablesofthisnaturebetweenthemselves.

46.A.goods

47.A.goods

48.A.deliveredB.presented

B.credits

C.documents

C.documents

C.deliver

B.notresponsible

D.contracts

D.contracts

B.credits

D.release

C.bound

49.

50.

A.responsible

A.norliablefor

D.willing

B.orliableforC.norliableto

D.orliableto

SectionThree(10%)

Directions:Readthefollowingpassages,anddeterminewhetherthesentencesare"Right"or"wrong".Ifthereisnotenough

informationtoanswer"right"or"wrong''.choose"Doesn'tsay".

PassageOne

Newissuesofcommonstockcomeintotwovarieties,primarydistributionsandsecondarydistributions.Primariesaresalesof

stockthathaveneverbeenissuedbefore.Therearetwotypesofprimarydistributions--initialpublicoffering(IPOs)andadditional

floatsofcompanies'stockthatwilldiluteeachshareholder'sexistingholding.Ofthetwo,thelatteraremorecommoninthenew

issuesmarketforequitiessincetheyinvolveofferingsofsharesoflarger,morematurecompaniesseekingadditionalequitycapital.

Secondarydistributionsaresalesofstockthatpreviouslyexistedinsomeformorotherbutaretoolargetobeaccommodatedon

thestockexchanges.Proceduresforsecondariesoftenfollowthoseforprimariesalthoughtheofferingperiodismuchshorterand

mayinvolveamatterofhoursratherthandays.

Theactualmarketingfortheseissuesisdonebyinvestmentbankersdirectlytothepublic.Onrareoccasions,companieshave

attemptedtoselltheirsharesorbondsdirectlytothepublic,avoidinginvestmentbankingfees.Unlessthecompanyisverywell

known,suchattemptsarelessthansuccessful.Thebehaviorofinvestmentbankersiskeytothereceptionofnewissuesand

directlyaffectsthecostofcapitalforacompany.Asaresult,thechoiceofaninvestmentbankeriscrucialforacompany,andthe

wrongchoicecouldaffectitscostsoverthenearterm.

51.Initialpublicofferings(IPOs)areoneofthetypeofprimarydistributions,whileadditionalfloatsofcompanies'stockbelongto

secondarydistributions.A.RightB.WrongC.Doesn'tsay

52.Comparedwithadditionalfloatsofcompanies'stock,initialpublicoffering

(IPOs)aremorecommonbecausetheyinvolveofferingsofshareslarger,morematurecompaniesseekingadditionalequity

capital.

53.Bothprimarydistributionsandsecondarydistributionsareissuedinprimarymarkets.

A.RightB.WrongC.Doesn'tsay

54.Fewcompanieshaveattemptedtoseetheirsharesorbondsdirectlytothepublic.

A.Right

B.Wrong

C.Doesn'tsay

A.Right

B.Wrong

C.Doesn'tsay

PassageTwo

Thesimplestmeansoftransferringfundsabroadisbymeansoftheairmailremittanceorder.Forexample,alocalcustomerof

thebankwishestosendmoneytoarelativeinJapan.ThelocalcustomergoestotheUnitedStatesbankandspecifieswhereandto

whomthemoneyistobedelivered.Healsoindicatestheamounthewishestosend,forexample,USD$100.Thebankpreparesa

lettertoitscorrespondentbankinthetownnearesttowheretherelativelives.Inthisletter,theUnitedStatesbanksays,"Advise

andpayUSdollars100to(nameandaddress)ofrecipient."Thelettersaysthatthisisbyorderofitslocalcustomer,givinghis

name.Thenitadds,"Inreimbursement,wecredityouraccountwithus."ThisinformstheJapanesebankthatitsaccountinthe

UnitedStatesbankhasbeencreditedUSD100(TheUnitedstatesbankcreditstheJapanesebanksduetoaccount).

55.MTisthesimplestmeansoftransferringfundsabroad.A.Right

56.Accordingtothepassage,thelocalcustomerofU.S.isaremitter.

B.Wrong

A.Right

C.Doesn'tsay

B.WrongC.Doesn'tsay

57.TheJapanesebankdebitstheU.S.bank'sduefromaccount.

PassageThree

A.RightB.WrongC.Doesn'tsay

Tofinancethenationaldebt,thegovernmentissuesavarietyofdebtsecurities.Themostwidelyheldliquidsecurityisthe

Treasurybill,whichiscommonlyissuedbytheministryoffinance.However.someTreasurybills,liketheTreasurybilloftheU.S.

government,donotactuallypayinterest.Insteadtheyareissuedatadiscountfrompar(theirvalueatma

yieldcomesfromtheincreaseinthevalueofthesecuritybetweenthetimeitwaspurchasedandthetimeitmatures.

Treasurybillsareattractivetoinvestorsbecausetheyarebackedbythegovernmentandthereforearevirtuallyfreeofdefault

risk.Becauseevenifthegovernmentranoutofmoneyitcouldsimplyprintmoretopaythemoffwhentheymature.Theriskof

unexpectedchangesininflationisalsolowbecauseoftheshorttermtomaturity.ThemarketsforTreasurybillsinmostdeveloped

countriesaredeepandliquid,Adeepmarketisonewithmanydifferentbuyersandsellers.Aliquidmarketisoneinwhich

securitiescanbeboughtandsoldquicklyandwithlowtransactioncosts.Investorsinmarketsthataredeepandliquidhavelittle

riskthattheywillnotbeabletoselltheirsecuritieswhentheywantto.

58.Treasurybillsareshort-termandvirtuallyfreeofdefaultrisk.A.RightB.Wrong

59.Assometreasurybillsdonotactuallypayinterest,theyarenotattractivetoinvestorsA.RightB.Wrong

60.Investorsindeepandliquidmarketsfaceimmenseriskthattheywillnotbeabletoselltheirsecuritieswhentheywantto.

A.RightB.WrongC.Doesn'tsay

C.Doesn'tsay

C.Doesn'tsay

SectionFour(20%)

Directions:Thereare4passagesinthissections.Eachpassageisfollowedbysomequestionsorunfinishedstatements.Foreachof

themtherearefourchoicesmarkedA,B,C,D.Youshouldchoosethebestanswer.

PassageOne

Sinceequaldollaramountsofdebitsandcreditsareenteredintheaccountsforeverytransactionrecorded,thesumofthedebitsin

theledgermustbeequaltothesumofallthecredits.Ifthecomputationofaccountbalanceshasbeenaccurate,itfollowsthatthe

totaloftheaccountswithdebitbalancesmustbeequaltothetotaloftheaccountswithcreditbalances.

Beforeusingtheaccountbalancestopreparefinancialstatements,itisdesirabletoprovethatthetotalofaccountswithdebit

balancesisinfactequaltothetotalofaccountswithcreditbalances.Thisproofoftheequalityofdebitandcreditbalancesiscalled

atrialbalances.Atrialbalanceisatwo-columnschedulelistingthenamesandbalancesofalltheaccountsintheorderinwhich

theyappearintheledger.Thedebitbalancesarelistedintheleft-handcolumnandthecreditbalancesintheright-column.The

totalsofthetwocolumnsshouldagree.

Thetrialbalanceprovidesproofthattheledgerisinbalance.Theagreementofthedebitandcredittotalsofthetrialbalance

givesassurancethat:

1.Equaldebitsandcreditshavebeenrecordedforalltransactions.

2.Thedebitorcreditbalanceofeachaccounthasbeencorrectlycomputed.

3.Theadditionoftheaccountbalancesinthetrialbalancehasbeencorrectlyperformed.

Supposethatthedebitandcredittotalsofthetrialbalancedonotagree.Thissituationindicatesthatoneormoreerrorshave

beenmade.Typicalofsucherrorsare(1)theenteringofadebitasacreditorviceverse;(2)arithmeticalmistakesinbalancing

accounts;(3)clericalerrorsincopyingaccountbalancesintothetrialbalance;(4)listingadebitbalanceinthecreditcolumnofthe

trialbalance,orviceverse;and(5)errorsinadditionofthetrialbalance.

Thepreparationofatrialbalancedoesnotprovethattransactionshavebeencorrectlyanalyzedandrecordedintheproper

accounts.If,forexample,areceiptofcashwerenotbedisclosedbythetrialbalance.Inbrief,thetrialbalanceprovesonlyone

respectoftheledger,andthatistheequalityofdebitandcredits.

61.Atrialbalanceisatwo-columnschedulelistingthenamesandbalancesofalltheaccountstoprove_______________.

A.theagreementofthedebitandcredittotalsB.theorderinwhichtheyappearintheledger

C.theequalityofaccountbalancesoffinancialstatementsD.theorderinwhichtheyappearintherecording

62.Unless__________,thetotalsofthedebitandcreditoftrialbalanceshouldagree.

A.thedebitorcreditbalanceofeachamounthasbeencorrectlycomputed

B.debitsandcreditshavebeenrecordedcorrectlyforalltransactions

C.unequaldebitsandcreditshavebeenrecordedforalltransactions

D.theadditionoftheaccountbalanceinthetrialbalanceshasbeencorrectlyperformed

63.If____________,thedebitandcredittotalsofthetrialbalancedonotagree.

A.mistakesappearincomputingbalancingaccountsB.acreditisenteredasadebit

C.acreditbalanceislistedinthedebitcolumnD.Alloftheabove

64.Ifapaymentofcashisrecordedby________,thetrialbalancewouldstillbalance.

A.creditingtheAccountPayableaccountB.debitingthecashaccount

C.debitingtheAccountReceivableaccount

D.debitingthelandaccount

65.Atrialbalanceisaworkingpaperwhichisintended___________.

A.fordistributiontovariousoutsidersB.topreparefinancialstatements

C.fordistributiontovariousaccountantsD.toprepareledgeraccounts

PassageTwo

Insuranceisalmostasimportanttobusinessasbanking.Itworksquitesimplybyspreadingoveralargenumberofpeople,thecosts

orthelosseswhichotherwisewouldfallonthefewwhoactuallysufferthem.

Fire,forinstance,normallydamagesonlyafewbusinesseseachyearbutalmostallcompaniesbuyinsurancetoprotect

themselvesagainstit.Whathappensisthatmostcompaniespayregularsmallamountsofmoney,calledthepremiumtoinsurance

groupsandsoalargefundofmoneybuildsup.Thenthefewwhohavesufferedfiresclaimthecostofthedamages.After

investigation,theclaimsarepaidoutbytheinsurancecompanies.

Fortheoperationtowork,insurancecompanieshavetocalculatewhatisthechanceorprobabilityofcertaineventshappening,

andwhatthecostofmakingaccidentsgoodwillbe,andhowmanypeoplewillpay,whatrates,tohaveprotection.Premiumsare

fixedinproportiontotheriskinvolved.

Therearefourprinciplesbackingupeveryinsurancecontract.Thefirst,knownasindemnity,isthattheinsuredshouldget

backthesamevalueaswaslost.Ifyouinsureyourwatchagainsttheriskofitsbeingstolen,thentheinsurancecompanywillonly

payoutthecostofasimilar,second.hiredwatchunlessyoumakeaspecialagreementwiththem.

Thesecondprincipleisthatofagreeingthattheinsurerhastoown,orhavetheinsurableinterestin,thepropertycovered,both

atthetimeofaffectingtheinsuranceandatthetimeofloss.Thisisusualforpoliciescoveringfire；buttheinsuranceonshipsand

theircargoescanbetransferredtonewownersifrequired.

Thirdlyitisnecessaryfortheagreementtobeconcludedingoodfaith.Generallythecompanyprovidinginsurancecover

chargesapremiumbasedonwhatitistold.Ifacompanyfailstomentionthatawarehousesometimescontainsexplosivesthe

underwritermaydeclarethecontractnotvalidandrefusetopayaclaimifthewarehouseblowsup.

Finally,insurersdistinguishbetweenremoteandimmediatecausesofanevent.Ifthereisanearthquakeandahouseis

damaged,catchesfireandisfloodedbyfiremenwhenputtingouttheflames,thecompensationduewilldependontheexactwords

usedinthedetailedinsurancecontract.Usuallycompaniesdonotprovidecoveragainstearthquakedamage,sothehouseowner

maynotgetanycompensationfortheeffectsofthefireorwater,asthesewereadirectresultoftheearthquake.

66.Whatarethefourprinciplesbackingupeveryinsurancecontract?

A.Indenmity,theinsurableinterest,premiumandgoodfaith.

B.Indemnity,thecostofthedamage,theexactwordsinthecontractandtheinsurableinterest.

C.Indemnity,theinsurableinterest,goodfaithandremoteandimmediatecausesofanevent.

D.Indemnity,theinsurableinterest,thecostofthedamagesandgoodfaith.

67.InPara.2,theterm"premium"means___________

A.thecostofthedamageB.asumofmoneypaidregularlytoaninsurancecompany

C.proportionoftheriskinvolvedD.alargefundofmoney

68.WhichofthefollowingisNOTtrueaccordingtothepassage?

A.Premiumsareusuallydecidedinproportiontotheriskinvolved.

B.Insurancecompaniesoftendonotprovidecoveragainstearthquakedamages.

C.Insuranceonshipsandtheircargoescanbetransferredtonewownersifrequired.

D.Thosewhobuyinsurancecanclaimthecostofdamagesiftheysufferfromfirescausedbyanearthquake.

69.Whichofthefollowingisimplied,butnotdirectlystatedinthepassage?

A.Aregularsmallsumofmoneywillcoveryourlosses.

B.Insurancecompaniesusuallydonotprovidecoveragainstearthquakelosses.

C.Aninsurancecompanycanbuildupalargesumofmoneyfromthosewhopayinsurancecharge.

D.Youcannotcoverthelossesyousufferiftheresultsoftheinvestigationbyinsurancecompanyturnoutnottobeinyour

favor.

70.Thepurposeofthispassageis___________.

A.togetyoufamiliarwithinsurancebusinessB.toadviseyoutoinsureyourproperties

C.totellyouhowtogetcompensationfromaninsurancecompanyD.toteachyouhowtosignaninsurancecontract

PassageThree

Oncetheexporterhasbeenadvisedthataletterofcredithasbeenissuedinitsfavor,manyexportersmakethemistakeof

startingtoprepareorfulfilltherequirementsoftheforeigncustomer'spurchaseorderbeforeactuallyreceivingtheactualletterof

creditfromtheopeningorissuingbank.Unlesstheexporterhashadgoodorexcellentpriorexperiencewiththeforeigncustomer

anditsissuingbank,theexporterrunstheriskofhavingthegoodsreadyforshipment,withoutreceivingtheoriginalletterofcredit.

Theexporterrunsariskbecauseitmayormaynotbeabletocomplywithcertaintermsandconditionscontainedintheactual

originalletterofcredit.Itisalwaysconceivablenewconditionsmightbeaddedtothecreditinstrument.Orthegoodsmightbe

shippedandarrivedattheoverseasportofdestinationwithoutanyoriginaldocumentsbecausetheoriginalL/Carriveslate.Thus,

theforeigncustomerwillbeunabletocleargoodsthroughcustoms,andthegoodswillbestoredinacustomswarehousetoaccrue

expensivedemurragecharges.

TheanswertotheabovementionedproblemistohavetheopeningbankissuetheletterofcreditviatestedtelexorSWIFTto

theadvisingornegotiatingbankasthe"originaloperativeinstrument"whichcanbepresentedforpaymentbythebeneficiary.The

exportermustmakesurethenegotiatingorconfirmingbank,usuallytheadvisingbank,iswillingtoaccepttheaforementionedas

theoriginaloperativeinstrument.Sometimesadvising,negotiating,andevenconfirmingbankswhopayonbehalfofissuingbanks

stillwanttowaitfortheoriginalwrittenletterofcredittobereceivedbythemviamail.Thismightindicateafinancialproblem

withtheissuingbankorsomesortoftechnicalproblemsbetweenthebankswhichtheexportershouldinvestigateimmediately.The

solutionhelpsreduceoreliminateanydelaysincredittimelyforpaymentaftershipmentofthegoods.Rememberinmanycases

bankswanttheoriginalon-boardoceanbillofladingpresentedtothemwiththeoriginalletterofcredit.

71.Theexport