2012年金融英语证书考试FECT模拟试题-8及答案解析.doc

1、2012 年金融英语证书考试 FECT 模拟试题-8 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.The law of diminishing returns: () （分数：2.00）A.Assumes that there are changes taking place in production techniques.B.Will always result in a positive figure.C.Results in average product equaling marginal p

2、roduct when the average product is at its maximum.D.Shows that the average product rises more rapidly than the marginal product.2.Income elasticity of demand for a particular product: () （分数：2.00）A.Will always have a positive measurement.B.Will be of value to the Government in setting the coming yea

3、rs direct tax rates.C.Will be unrelated to the possibility of changes in design of the product.D.Could be affected by changes in levels of discretionary spending power.3. For a profit-maximizing firm, the price level equals its marginal revenue (MR) when: () （分数：2.00）A.In an oligopolistic market.B.I

4、n a monopolistic situation.C.In a perfectly competitive market.D.Sales rise with the increase in price level.4.When one countrys potential GDP is higher than its real GDP, this means: () （分数：2.00）A.Its exports are higher than its imports.B.Inflation is getting worse.C.There exists some unemployment.

5、D.None of the above.5.Cutting taxes can lower investment through its impact on interest rates. This is an example of the: () （分数：2.00）A.Income effect.B.Accelerator effect.C.Crowding out effect.D.Multiplier effect.6. The price of petrol increases and sales of tyres decrease. This reflects （分数：2.00）A.

6、Petrol and tyres are substitutes, and there is a strong income effect.B.The demand for tyres is inelastic.C.Tyres are inferior goods.D.Petrol and tyres are complements, and there is also an income effect.7. The FDIC presently insures deposits up to what amount? () （分数：2.00）A.$25,000 per accountB.$50

7、000 per accountC.$100,000 per accountD.$1,000,000 per accountE.Unlimited8.Firms which specialize in helping companies raise capital by selling securities are called () （分数：2.00）A.commercial banksB.investment banksC.savings banksD.credit unionsE.all of the above9.The most liquid of all assets is ()

8、分数：2.00）A.The stock of commercial banksB.M1C.IntelligenceD.The debt of major corporations10.Company A and Company B are identical in every way except their capital structure. Each firm can borrow at 10% and each is taxed at 40%. Company A Company B Assets 1000 1000 Equity 600 1000 Debt 400 100 EBIT

9、 100 100 Which firm had the higher Net Income? Which firm had the higher ROE? () （分数：2.00）A.Company B had a higher net income but the ROEs were identical.B.Company A had a higher net income; company A had a higher ROE.C.Company B had a higher net income; company B had a higher ROE.D.Company A had a

10、higher net income; company B had a higher ROE.E.Company B had a higher net income; company A had a higher ROE.二、SECTION TWO(Compulso(总题数：1，分数：10.00)Renaud Blanc is an analyst in the risk management department of De Luca Corporation, a U.S. company that processes fruit and vegetables bought on the wo

11、rld market. Production and sales of packaged fruit juices and condiments occur in the United States, South America, and Europe. Blanc is responsible for making assessments of the relative strength of the U.S. dollar against other relevant currencies. Blanc knows that relative rates of inflation will

12、 influence the dollar value of a currency, so he forecasts inflation for the United States and its trading partners. De Luca buys fruit from Brazil. For the coming year Blanc forecasts annual U.S. inflation of 2% and annual Brazilian inflation of 10%. The current exchange rate is BRL3/USD (BRL = Bra

13、zilian real, USD = U.S. dollar). The one-year risk-free interest rates in the United States and Brazil are 2.25% and 18%, respectively. One of Blancs colleagues, Paula Smith, makes the following statements: 1. “The theory of uncovered interest rate parity allows me to calculate E(S1)/S0 as being equ

14、al to the ratio of “one plus the one-year Brazilian interest rate“ to “one plus the one-year U.S. interest rate,“ when the expected ending exchange rate, E(S1), and the beginning of period exchange rate, S0, are quoted as BRL/USD.“ 2. “Exchange rate risk reduces to inflation uncertainty if all parit

15、y relationships hold perfectly.“ Smith questions Blanc about whether forward markets for the Brazilian real give any indication about the expected exchange rate in one year. Blanc responds: “If the forward rate equals the expected spot rate, then using forward currency contracts to hedge exchange ri

16、sk would be costless (aside from commissions) in terms of the expected dollar price that De Luca would pay for fruit in Brazil.“ De Luca also purchases fruit and packaging materials in Europe. Blanc is considering various ways to hedge against the cost of future material purchases in Europe. For the

17、 coming year, he forecasts annual inflation of 4% inflation for Europe and 2% for the United States. He believes that uncovered and covered interest parity hold for the United States and Europe. （分数：10.00）(1).If the international Fisher effect holds, based on Blancs forecasts, the current one-year r

18、isk-free interest rate in Europe should be closest to: () （分数：2.00）A.0.25%.B.2.25%.C.4.25%.D.6.25%.(2).Based on Exhibit 1, funded status of Dubans pension plan under U.S. GAAP for 2007 ($ millions) would be closest to: () （分数：2.00）A.1,256 liability.B.681 liability.C.681 asset.D.1,256 asset.(3).Based

19、 on Exhibit 1, the pension expense ($ millions) that would be reported on Dubans 2007 income statement under U.S. GAAP would be closest to: () （分数：2.00）A.187.B.225.C.230.D.317.(4).Based on Exhibit 1, the underlying economic pension expense ($ millions) for Duban for 2007 would be closest to: () （分数：

20、2.00）A.187.B.192.C.233D.274.(5).Based on Exhibit 2, under U.S. GAAP Dubans 2007 translation gain on Kerwins identifiable assets resulting from exchange rate changes ($ millions) was closest to: () （分数：2.00）A.133.B.165.C.197.D.216.三、Explanations of term(总题数：5，分数：30.00)11.Liquidity preference （分数：6.00

21、12.Moral suasion （分数：6.00）_13. J-curve effect （分数：6.00）_14. Capital asset pricing model (CAPM) （分数：6.00）_15.Interest rate risk （分数：6.00）_四、Question and Answer(总题数：4，分数：40.00)16.What is The Targets of Chinas Monetary Policy? （分数：10.00）填空项 1:_17.List the Basic Features of a Corporate Bond Issue （分数：

22、10.00）填空项 1:_18.How does the inflation affect Wealth and Redistribution of Income? （分数：10.00）填空项 1:_19.What is The Purpose of Holding Foreign Reserve? （分数：10.00）填空项 1:_2012 年金融英语证书考试 FECT 模拟试题-8 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.The law of diminishing returns: () （分数

23、2.00）A.Assumes that there are changes taking place in production techniques.B.Will always result in a positive figure.C.Results in average product equaling marginal product when the average product is at its maximum. D.Shows that the average product rises more rapidly than the marginal product.解析：2

24、Income elasticity of demand for a particular product: () （分数：2.00）A.Will always have a positive measurement.B.Will be of value to the Government in setting the coming years direct tax rates.C.Will be unrelated to the possibility of changes in design of the product.D.Could be affected by changes in

25、levels of discretionary spending power. 解析：3. For a profit-maximizing firm, the price level equals its marginal revenue (MR) when: () （分数：2.00）A.In an oligopolistic market.B.In a monopolistic situation.C.In a perfectly competitive market. D.Sales rise with the increase in price level.解析：4.When one c

26、ountrys potential GDP is higher than its real GDP, this means: () （分数：2.00）A.Its exports are higher than its imports.B.Inflation is getting worse.C.There exists some unemployment. D.None of the above.解析：5.Cutting taxes can lower investment through its impact on interest rates. This is an example of

27、the: () （分数：2.00）A.Income effect.B.Accelerator effect. C.Crowding out effect.D.Multiplier effect.解析：6. The price of petrol increases and sales of tyres decrease. This reflects （分数：2.00）A.Petrol and tyres are substitutes, and there is a strong income effect.B.The demand for tyres is inelastic.C.Tyres

28、 are inferior goods.D.Petrol and tyres are complements, and there is also an income effect. 解析：7. The FDIC presently insures deposits up to what amount? () （分数：2.00）A.$25,000 per accountB.$50,000 per accountC.$100,000 per account D.$1,000,000 per accountE.Unlimited解析：8.Firms which specialize in help

29、ing companies raise capital by selling securities are called () （分数：2.00）A.commercial banksB.investment banksC.savings banksD.credit unionsE.all of the above 解析：9.The most liquid of all assets is () （分数：2.00）A.The stock of commercial banksB.M1 C.IntelligenceD.The debt of major corporations解析：10.Comp

30、any A and Company B are identical in every way except their capital structure. Each firm can borrow at 10% and each is taxed at 40%. Company A Company B Assets 1000 1000 Equity 600 1000 Debt 400 100 EBIT 100 100 Which firm had the higher Net Income? Which firm had the higher ROE? () （分数：2.00）A.Compa

31、ny B had a higher net income but the ROEs were identical.B.Company A had a higher net income; company A had a higher ROE.C.Company B had a higher net income; company B had a higher ROE. D.Company A had a higher net income; company B had a higher ROE.E.Company B had a higher net income; company A had

32、 a higher ROE.解析：二、SECTION TWO(Compulso(总题数：1，分数：10.00)Renaud Blanc is an analyst in the risk management department of De Luca Corporation, a U.S. company that processes fruit and vegetables bought on the world market. Production and sales of packaged fruit juices and condiments occur in the United

33、States, South America, and Europe. Blanc is responsible for making assessments of the relative strength of the U.S. dollar against other relevant currencies. Blanc knows that relative rates of inflation will influence the dollar value of a currency, so he forecasts inflation for the United States an

34、d its trading partners. De Luca buys fruit from Brazil. For the coming year Blanc forecasts annual U.S. inflation of 2% and annual Brazilian inflation of 10%. The current exchange rate is BRL3/USD (BRL = Brazilian real, USD = U.S. dollar). The one-year risk-free interest rates in the United States a

35、nd Brazil are 2.25% and 18%, respectively. One of Blancs colleagues, Paula Smith, makes the following statements: 1. “The theory of uncovered interest rate parity allows me to calculate E(S1)/S0 as being equal to the ratio of “one plus the one-year Brazilian interest rate“ to “one plus the one-year

36、U.S. interest rate,“ when the expected ending exchange rate, E(S1), and the beginning of period exchange rate, S0, are quoted as BRL/USD.“ 2. “Exchange rate risk reduces to inflation uncertainty if all parity relationships hold perfectly.“ Smith questions Blanc about whether forward markets for the

37、Brazilian real give any indication about the expected exchange rate in one year. Blanc responds: “If the forward rate equals the expected spot rate, then using forward currency contracts to hedge exchange risk would be costless (aside from commissions) in terms of the expected dollar price that De L

38、uca would pay for fruit in Brazil.“ De Luca also purchases fruit and packaging materials in Europe. Blanc is considering various ways to hedge against the cost of future material purchases in Europe. For the coming year, he forecasts annual inflation of 4% inflation for Europe and 2% for the United

39、States. He believes that uncovered and covered interest parity hold for the United States and Europe. （分数：10.00）(1).If the international Fisher effect holds, based on Blancs forecasts, the current one-year risk-free interest rate in Europe should be closest to: () （分数：2.00）A.0.25%.B.2.25%.C.4.25%. D

40、6.25%.解析：Discuss the international Fisher relation and calculate and interpret 1) interest rates exactly and by linear approximation, given expected inflation rates and the assumption that the international Fisher relation holds, 2) the real interest rate, given interest rates and inflation rates a

41、nd the assumption that the international Fisher relation holds, and 3) the international Fisher relation, and its linear approximation, between interest rates and expected inflation rates. If the international Fisher relation holds, then the real rate in Europe is equal to the real rate in the Unite

42、d States. Given rUS = 2.25 and IUS = 2, we calculate the real U.S. rate, , to be equal to 2.25 - 2.00 = 0.25 (where IUS is the expected rate of inflation in the U.S.). We now know that the European real rate is = 0.25%. Based on IEurope = 4%, we have rEurope = + expected IEurope = 0.25 + 4.0 = 4.25%

43、 (2).Based on Exhibit 1, funded status of Dubans pension plan under U.S. GAAP for 2007 ($ millions) would be closest to: () （分数：2.00）A.1,256 liability. B.681 liability.C.681 asset.D.1,256 asset.解析：Calculate the underlying economic liability (or asset) of a company based upon pension and other post-

44、employment benefit disclosures. The pension liability is calculated as follows: (3).Based on Exhibit 1, the pension expense ($ millions) that would be reported on Dubans 2007 income statement under U.S. GAAP would be closest to: () （分数：2.00）A.187.B.225. C.230.D.317.解析：Describe the components of a co

45、mpanys defined-benefit pension expense and explain the impact of plan assumptions on that pension expense. The pension expense is calculated as follows: (4).Based on Exhibit 1, the underlying economic pension expense ($ millions) for Duban for 2007 would be closest to: () （分数：2.00）A.187.B.192.C.233D

46、274. 解析：Calculate the underlying economic pension and other post-employment expense (income) based upon disclosures after removing the effect of amortized items and smoothing mechanisms. The economic pension expense is calculated as follows: (5).Based on Exhibit 2, under U.S. GAAP Dubans 2007 trans

47、lation gain on Kerwins identifiable assets resulting from exchange rate changes ($ millions) was closest to: () （分数：2.00）A.133.B.165.C.197. D.216.解析： and income statement; calculate the translation effects of the all-current and temporal methods of foreign currency translation. To ascertain how much of the change in identifiable assets resulted from exchange rate changes rather than an actual asset increase in krona, the year-end rate is used to translate assets into krona. 三、Explanations of term(总题数：5，分数：30.00)11.Liquidity preference （分数：6.00）_