2012年金融英语证书考试FECT模拟试题-2及答案解析.doc

1、2012年金融英语证书考试 FECT模拟试题-2 及答案解析(总分：100.00，做题时间：90 分钟)一、SECTION ONE (Compuls(总题数：10，分数：20.00)1.A production function for a firm describes: () （分数：2.00）A.What should be produced to maximize profit.B.What is technologically feasible when the firm produces efficiently.C.What revenue is earned from produc

2、ing efficiently.D.What the firm produces with given inputs.2. Which of the following is not a characteristic of a competitive industry? () （分数：2.00）A.There are many firms.B.All firms produce homogeneous products, which are substitutable for each other.C.There is a fierce price war among rivals.D.Fir

3、ms can enter and exit the industry freely.3.The Central Bank in the open market buying and selling of securities is designed to: () （分数：2.00）A.regulation bond pricesB.achieve profit maximizationC.regulate money supplyD.adjust prices level4. What unemployment is formed because of the economic recessi

4、on? () （分数：2.00）A.friction unemploymentB.structural unemploymentC.cyclical unemploymentD.natural unemployment5.After a long race on a hot day, a runner enjoys her first drink a lot, the second she enjoys less and she declines a third drink. This illustrates the principle of: () （分数：2.00）A.Increasing

5、 marginal utility.B.Decreasing marginal utility.C.Increasing marginal cost.D.Decreasing marginal cost.6.On a hot day, the price and the quantity sold of ice creams both increase. This can reflect a: () （分数：2.00）A.Shift in the demand curve to the right.B.Move along the demand curve.C.Shift in the dem

6、and curve to the left.D.Shift in the supply curve to the right.7.When a countrys currency appreciates, the countrys goods abroad become _ and foreign goods in that country become _. （分数：2.00）A.cheaper. more expensiveB.more expensive. cheaperC.cheaper.cheaperD.more expensive. more expensive8.A US com

7、pany is bidding for a contract in China. Its Chinese customer asks for a performance bond. What is the most likely course of action? () （分数：2.00）A.It asks its bank to issue a tender bond which can be converted into a performance bondB.It gives up its bidC.It consults its bank about issuing a standby

8、 letter of creditD.It asks its bank to issue a performance bond9.There is a deficit in the federal budget when: () （分数：2.00）A.Federal government spending is greater than federal tax revenues.B.U.S. imports are greater than U.S. exports.C.The total demand for money is greater than the total supply of

9、 money.D.U.S. imports are smaller than U.S. exports.10.Mrs. Jones purchased a 20-year Treasury bond bearing a 12% coupon rate. She purchased the bond at par ($1000). If rates fall to 9% what will be the new price of the bond? () （分数：2.00）A.$1333B.$1500C.$750D.$900E.There will be no change in the pri

10、ce of the bond.二、SECTION TWO(Compulso(总题数：1，分数：10.00)James Sigmund, CFA, is the Head of International Equity for Pell Global Advisors (PGA). Sigmund is considering investing in the country of Zuflak as part of an emerging market portfolio. Sigmund is aware of the risks in investing in emerging marke

11、ts and is preparing a valuation report regarding this investment. He estimates that Zuflak government debt would be rated BB, and has gathered the following market information for use in analyzing Zuflak. Local Government Bond Yield = 11.50% U.S. 10 year Treasury Bond Yield = 4.50% U.S. BB rated Cor

12、porate Bond Yield = 7.75% Local Inflation Rate = 6.50% U.S. Inflation Rate = 3.00% To assist in his analysis of Zuflak, Sigmund has asked Stefano Testorf, CFA, to estimate a value for Kiani Corporation (Kiani), Oleg Industries (Oleg), and Malik Incorporated (Malik) - the three primary companies domi

13、ciled in Zuflak that Sigmund has determined to have adequate liquidity for inclusion in PGAs client portfolios. Testorf gives Sigmund a rough draft of his report and tells Sigmund that in order to account for country specific emerging market risks; he used a probability-weighted scenario analysis to

14、 adjust cash flows. Sigmund asks him, “Why didnt you simply adjust the discount rate?” Testorf replies with three reasons: Reason 1: The country risk attributable to Zuflak can be diversified away according to modern finance theory, and should not be included in the cost of capital. Reason 2: Compan

15、ies in emerging markets tend to exhibit wild price swings both up and down, therefore adjusting cash flows is the best way to account for these symmetrical country risks. Reason 3: Although Kiani, Oleg, and Malik are all domiciled in Zuflak, each of these companies will tend to respond differently t

16、o country risks. This makes it virtually impossible to adjust the discount rate for country specific risk and come up with an accurate valuation estimate. After careful analysis by Sigmund and his team, Sigmund decides that he wants to have exposure to Zuflak in his international portfolios. He is s

17、till unsure however, what the best way would be to establish the exposure. Sigmund discusses his concerns with Steve Solak, another portfolio manager with PGA. Solak suggests that Sigmund consider using a closed-end country fund to invest in Zuflak. Solak hands Sigmund a copy of a note that he had p

18、rovided to a client listing facts about country-specific closed end funds. The note contained the following statements: Closed-end country funds provide an excellent means to access local foreign markets. Even nations that have restrictions on foreign investment are sometimes accessible using closed

19、end country funds. Closed-end country funds issue a fixed number of shares and are a great way to diversify a U.S.-dollar stock portfolio because of their low correlation with the U.S. stock market. Sigmund thanks Solak for the information and heads back to his office. As he is leaving, Solak asks

20、him if he would have time later that afternoon to discuss the use of American Depository Receipts (ADRs). （分数：10.00）(1).What is the best estimate of the country risk premium for Zuflak? () （分数：2.00）A.0.25%.B.1.50%.C.2.75%.D.6.00%.(2).To determine a valuation estimate for Oleg, Testorf assumes that l

21、ocal investors require a 5 percent real rate of return on companies with similar risk to Oleg. What is Olegs price-to-earnings (P/E) ratio, if the company has an inflation flow-through rate of 65 percent? () （分数：2.00）A.13.75.B.5.33.C.3.00.D.21.25(3).In regard to Testorfs reasons for incorporating em

22、erging market risk into the valuation of Zuflak by adjusting cash flows rather than adjusting the discount rate, which of the following is TRUE?() （分数：2.00）A.Reasons 1 and 3 support Testorfs cash flow adjustment, but reason 2 does not.B.All three of the reasons given support Testorfs cash flow adjus

23、tment.C.Reasons 2 and 3 support Testorfs cash flow adjustment, but reason 1 does not.D.Reason 1 supports Testorfs cash flow adjustment, but reasons 2 and 3 do not.(4).Due to the high inflation rate of the local country, Testorf calculates the return on invested capital (ROIC) for Kiani by revaluing

24、the companys fixed assets. In comparing the performance of Zuflak to other local companies, the ROIC calculation should: () （分数：2.00）A.Exclude goodwill.B.Exclude depreciation.C.Not revalue fixed assets.D.Exclude net operating profit adjusted for taxes.(5).With regard to Solaks note concerning closed

25、 end-country funds: () （分数：2.00）A.Statement 1 is correct, statement 2 is correct.B.Statement 1 is incorrect, statement 2 is incorrect.C.Statement 1 is correct, statement 2 is incorrect.D.Statement 1 is incorrect, statement 2 is correct.三、Explanations of term(总题数：5，分数：30.00)11.Real interest rate （分数：

26、6.00）_12.Window instruction （分数：6.00）_13.Special drawing rights （分数：6.00）_14.Money market mutual funds （分数：6.00）_15.Putable bonds （分数：6.00）_16.Please list some Capital Market Instruments. （分数：10.00）_17.What kind of Economic Policy in an Open Economy （分数：10.00）_18.What is the Modern Quantity Theory o

27、f Money Demand? （分数：10.00）_19.If you are a policy maker, what are your Ultimate Targets of Monetary Policy? （分数：10.00）_2012年金融英语证书考试 FECT模拟试题-2 答案解析(总分：100.00，做题时间：90 分钟)一、SECTION ONE (Compuls(总题数：10，分数：20.00)1.A production function for a firm describes: () （分数：2.00）A.What should be produced to maxi

28、mize profit.B.What is technologically feasible when the firm produces efficiently. C.What revenue is earned from producing efficiently.D.What the firm produces with given inputs.解析：2. Which of the following is not a characteristic of a competitive industry? () （分数：2.00）A.There are many firms.B.All f

29、irms produce homogeneous products, which are substitutable for each other.C.There is a fierce price war among rivals. D.Firms can enter and exit the industry freely.解析：3.The Central Bank in the open market buying and selling of securities is designed to: () （分数：2.00）A.regulation bond pricesB.achieve

30、 profit maximizationC.regulate money supply D.adjust prices level解析：4. What unemployment is formed because of the economic recession? () （分数：2.00）A.friction unemploymentB.structural unemploymentC.cyclical unemployment D.natural unemployment解析：5.After a long race on a hot day, a runner enjoys her fir

31、st drink a lot, the second she enjoys less and she declines a third drink. This illustrates the principle of: () （分数：2.00）A.Increasing marginal utility.B.Decreasing marginal utility. C.Increasing marginal cost.D.Decreasing marginal cost.解析：6.On a hot day, the price and the quantity sold of ice cream

32、s both increase. This can reflect a: () （分数：2.00）A.Shift in the demand curve to the right. B.Move along the demand curve.C.Shift in the demand curve to the left.D.Shift in the supply curve to the right.解析：7.When a countrys currency appreciates, the countrys goods abroad become _ and foreign goods in

33、 that country become _. （分数：2.00）A.cheaper. more expensiveB.more expensive. cheaper C.cheaper.cheaperD.more expensive. more expensive解析：8.A US company is bidding for a contract in China. Its Chinese customer asks for a performance bond. What is the most likely course of action? () （分数：2.00）A.It asks

34、 its bank to issue a tender bond which can be converted into a performance bond B.It gives up its bidC.It consults its bank about issuing a standby letter of creditD.It asks its bank to issue a performance bond解析：9.There is a deficit in the federal budget when: () （分数：2.00）A.Federal government spend

35、ing is greater than federal tax revenues. B.U.S. imports are greater than U.S. exports.C.The total demand for money is greater than the total supply of money.D.U.S. imports are smaller than U.S. exports.解析：10.Mrs. Jones purchased a 20-year Treasury bond bearing a 12% coupon rate. She purchased the b

36、ond at par ($1000). If rates fall to 9% what will be the new price of the bond? () （分数：2.00）A.$1333B.$1500C.$750D.$900 E.There will be no change in the price of the bond.解析：二、SECTION TWO(Compulso(总题数：1，分数：10.00)James Sigmund, CFA, is the Head of International Equity for Pell Global Advisors (PGA). S

37、igmund is considering investing in the country of Zuflak as part of an emerging market portfolio. Sigmund is aware of the risks in investing in emerging markets and is preparing a valuation report regarding this investment. He estimates that Zuflak government debt would be rated BB, and has gathered

38、 the following market information for use in analyzing Zuflak. Local Government Bond Yield = 11.50% U.S. 10 year Treasury Bond Yield = 4.50% U.S. BB rated Corporate Bond Yield = 7.75% Local Inflation Rate = 6.50% U.S. Inflation Rate = 3.00% To assist in his analysis of Zuflak, Sigmund has asked Stef

39、ano Testorf, CFA, to estimate a value for Kiani Corporation (Kiani), Oleg Industries (Oleg), and Malik Incorporated (Malik) - the three primary companies domiciled in Zuflak that Sigmund has determined to have adequate liquidity for inclusion in PGAs client portfolios. Testorf gives Sigmund a rough

40、draft of his report and tells Sigmund that in order to account for country specific emerging market risks; he used a probability-weighted scenario analysis to adjust cash flows. Sigmund asks him, “Why didnt you simply adjust the discount rate?” Testorf replies with three reasons: Reason 1: The count

41、ry risk attributable to Zuflak can be diversified away according to modern finance theory, and should not be included in the cost of capital. Reason 2: Companies in emerging markets tend to exhibit wild price swings both up and down, therefore adjusting cash flows is the best way to account for thes

42、e symmetrical country risks. Reason 3: Although Kiani, Oleg, and Malik are all domiciled in Zuflak, each of these companies will tend to respond differently to country risks. This makes it virtually impossible to adjust the discount rate for country specific risk and come up with an accurate valuati

43、on estimate. After careful analysis by Sigmund and his team, Sigmund decides that he wants to have exposure to Zuflak in his international portfolios. He is still unsure however, what the best way would be to establish the exposure. Sigmund discusses his concerns with Steve Solak, another portfolio

44、manager with PGA. Solak suggests that Sigmund consider using a closed-end country fund to invest in Zuflak. Solak hands Sigmund a copy of a note that he had provided to a client listing facts about country-specific closed end funds. The note contained the following statements: Closed-end country fun

45、ds provide an excellent means to access local foreign markets. Even nations that have restrictions on foreign investment are sometimes accessible using closed-end country funds. Closed-end country funds issue a fixed number of shares and are a great way to diversify a U.S.-dollar stock portfolio bec

46、ause of their low correlation with the U.S. stock market. Sigmund thanks Solak for the information and heads back to his office. As he is leaving, Solak asks him if he would have time later that afternoon to discuss the use of American Depository Receipts (ADRs). （分数：10.00）(1).What is the best estim

47、ate of the country risk premium for Zuflak? () （分数：2.00）A.0.25%. B.1.50%.C.2.75%.D.6.00%.解析：Because a U.S. denominated local government bond does not exist, the following formula must be used to calculate the country risk premium: Local government bond yield (nonUS dollar denominated) - U.S. 10 year T-bond yield