金融英语考试模拟试题及答案(15)
SECTION ONE (Compulsory) ：Single-choice questions
from the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points)
1. Which belongs to the Tightening of fiscal policy tools? ( )
A. Reduce government spending and increase tax revenue
B. Reduce government spending and reduce taxes
C. Increasing government spending and reducing taxes
D. Increase in government expenditure and increase tax revenue
2. What market is the Most in need of the advertising? ( )
A. Fully competitive market
B. Monopolize market
C. Competitive monopoly market
D. Oligopoly market
3. The value of national output: ( )
A. Is the same of the output of all businesses.
B. Is the aggregate of output of employed persons.
C. Is synonymous with aggregate manufacturing output.
D. Utilizes the "added value" concept.
4. With C = 10 + 0.7Y and the level of income changing from $70 billion to $80 billion, the increase in consumption and the revised average propensity to consume (ape) respectively would be: ( )
A. $9 billion and 0.78.
B. $6 billion and 0.8.
C. $7 billion and 0.79.
D. $7 billion and 0.825.
5. Which of the following goods is likely to have the most elastic demand? ( )
A. A particular brand of breakfast cereal.
B. Breakfast cereals in general.
C. A very cheap good on which not much is spent (e.g. matches newspaper) .
D. An essential good.
6. School students paying a lower fare than adults on the MTR trains, or cheaper tickets to the theatre, is an example of: ()
A. The suppliers making less profit because some customers pay a lower price.
B. Consumers obtaining more consumer surplus.
C. Price discrimination allowing the suppliers to make more profit from charging a higher price to
customers whose demand is more elastic.
D. Price discrimination allowing the suppliers to make more profit from charging a lower price to customers whose demand is more elastic.
7. A futures trader goes long one futures contract at $450. The settlement price 1 day before expiration is $500. On expiration day, the future is trading at $505. The least likely way the futures trader will lock in her profits on expiration is: ( )
A. Take delivery of the underlying asset and pay $500 to the short.
B. Close out the futures position by selling the futures contract at $505.
C. Take delivery of the underlying asset and pay the expiration settlement price to the short.
D. Cash settle the futures and receive the difference between $500 and the expiration settlement price.
8. In the context of break-even analysis, the Margin of Safety for a firm is: ( )
A. The difference between the sales revenue achieved and the break-even revenue.
B. The difference between planned (or actual) output and the break-even quantity in a particular time period.
C. The percentage difference between planned (or actual) output and the break-even quantity.
D. The difference between planned (or actual) output and the break-even quantity.
9. There is 5-year annuity of $3,000 per year. However, the first payment will not pay until year 3. Assuming the interest rate is 10%, calculate the present value of this annuity. ( )
A. $8397.
B. $9,399.
C. $10,258.
D. None of the above.
10. Hub Global, Inc. has issued two classes of debt securities to finance its operations, a first mortgage bond and debenture bonds. All else equal, will the default and recovery rates of the debenture likely be higher than the first mortgage bond? ( )
A. Answer A.
B. Answer B.
C. Answer C.
D. Answer D.
SECTION TWO(Compulsory)： Reading Comprehension (10 points)
Gary Zeller, an independent portfolio manager who manages money for high-net-worth individuals, is a proponent of the efficient market hypothesis. He uses the Treynor-Black model to determine asset allocations for his portfolios. At the moment, he is considering several investments for new portfolios. Here are their characteristics.
The risk-free rate is 5.7%. The expected return of the S&P 500 Index is 10%, and the index’s standard deviation is 14%.
Zeller plans to create a portfolio using a mix of the S&P 500 Index, the risk-free asset, and the four stocks discussed above. He uses the data above to select the appropriate asset allocations to maximize returns.
from the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points)
1. Which belongs to the Tightening of fiscal policy tools? ( )
A. Reduce government spending and increase tax revenue
B. Reduce government spending and reduce taxes
C. Increasing government spending and reducing taxes
D. Increase in government expenditure and increase tax revenue
2. What market is the Most in need of the advertising? ( )
A. Fully competitive market
B. Monopolize market
C. Competitive monopoly market
D. Oligopoly market
3. The value of national output: ( )
A. Is the same of the output of all businesses.
B. Is the aggregate of output of employed persons.
C. Is synonymous with aggregate manufacturing output.
D. Utilizes the "added value" concept.
4. With C = 10 + 0.7Y and the level of income changing from $70 billion to $80 billion, the increase in consumption and the revised average propensity to consume (ape) respectively would be: ( )
A. $9 billion and 0.78.
B. $6 billion and 0.8.
C. $7 billion and 0.79.
D. $7 billion and 0.825.
5. Which of the following goods is likely to have the most elastic demand? ( )
A. A particular brand of breakfast cereal.
B. Breakfast cereals in general.
C. A very cheap good on which not much is spent (e.g. matches newspaper) .
D. An essential good.
6. School students paying a lower fare than adults on the MTR trains, or cheaper tickets to the theatre, is an example of: ()
A. The suppliers making less profit because some customers pay a lower price.
B. Consumers obtaining more consumer surplus.
C. Price discrimination allowing the suppliers to make more profit from charging a higher price to
customers whose demand is more elastic.
D. Price discrimination allowing the suppliers to make more profit from charging a lower price to customers whose demand is more elastic.
7. A futures trader goes long one futures contract at $450. The settlement price 1 day before expiration is $500. On expiration day, the future is trading at $505. The least likely way the futures trader will lock in her profits on expiration is: ( )
A. Take delivery of the underlying asset and pay $500 to the short.
B. Close out the futures position by selling the futures contract at $505.
C. Take delivery of the underlying asset and pay the expiration settlement price to the short.
D. Cash settle the futures and receive the difference between $500 and the expiration settlement price.
8. In the context of break-even analysis, the Margin of Safety for a firm is: ( )
A. The difference between the sales revenue achieved and the break-even revenue.
B. The difference between planned (or actual) output and the break-even quantity in a particular time period.
C. The percentage difference between planned (or actual) output and the break-even quantity.
D. The difference between planned (or actual) output and the break-even quantity.
9. There is 5-year annuity of $3,000 per year. However, the first payment will not pay until year 3. Assuming the interest rate is 10%, calculate the present value of this annuity. ( )
A. $8397.
B. $9,399.
C. $10,258.
D. None of the above.
10. Hub Global, Inc. has issued two classes of debt securities to finance its operations, a first mortgage bond and debenture bonds. All else equal, will the default and recovery rates of the debenture likely be higher than the first mortgage bond? ( )
A. Answer A.
B. Answer B.
C. Answer C.
D. Answer D.
SECTION TWO(Compulsory)： Reading Comprehension (10 points)
Gary Zeller, an independent portfolio manager who manages money for high-net-worth individuals, is a proponent of the efficient market hypothesis. He uses the Treynor-Black model to determine asset allocations for his portfolios. At the moment, he is considering several investments for new portfolios. Here are their characteristics.
The risk-free rate is 5.7%. The expected return of the S&P 500 Index is 10%, and the index’s standard deviation is 14%.
Zeller plans to create a portfolio using a mix of the S&P 500 Index, the risk-free asset, and the four stocks discussed above. He uses the data above to select the appropriate asset allocations to maximize returns.