金融英语理论考试题库单选题100道及答案解析.docxVIP

金融英语理论考试题库单选题100道及答案解析

1.Whichofthefollowingisafinancialinstitution?

A.Hospital

B.School

C.Bank

D.Supermarket

Answer:C

Explanation:Abankisatypicalfinancialinstitutionthatdealswithfinancialtransactionssuchasdeposits,loans,andcurrencyexchange.

2.Whatdoescreditriskreferto?

A.Theriskoflosingmoneyinthestockmarket

B.Theriskthataborrowerwillfailtorepayaloan

C.Theriskofinflation

D.Theriskofexchangeratefluctuations

Answer:B

Explanation:Creditriskisthepossibilitythataborrowerwilldefaultontheirdebtobligationsandfailtorepayaloan.

3.Theprimerateis:

A.Thelowestinterestrateavailable

B.Theinterestrateofferedtothemostcreditworthyborrowers

C.Theaverageinterestrateintheeconomy

D.Theinterestrateongovernmentbonds

Answer:B

Explanation:Theprimerateistheinterestratethatcommercialbankschargetheirmostcreditworthycustomers.

4.Whichofthefollowingisaformofequityfinancing?

A.Bonds

B.Stocks

C.Bankloans

D.Mortgages

Answer:B

Explanation:Stocksrepresentownershipinacompanyandareaformofequityfinancing.

5.Whatisthepurposeofamargincall?

A.Torequireadditionalfundstobedepositedtomaintainaposition

B.Tocloseaninvestmentaccount

C.Tonotifyofaprofit

D.Toofferanewinvestmentopportunity

Answer:A

Explanation:Amargincalloccurswhenthevalueofaninvestmentdrops,andadditionalfundsneedtobedepositedtomeetthemarginrequirementsandmaintaintheposition.

6.Hedgefundstypically:

A.Arehighlyregulated

B.Offerlow-riskinvestments

C.Useaggressiveinvestmentstrategies

D.Areaccessibletoallinvestors

Answer:C

Explanation:Hedgefundsoftenemploycomplexandaggressiveinvestmentstrategiestogeneratehighreturns.

7.TheDowJonesIndustrialAveragemeasures:

A.Theperformanceofaselectgroupoflargecompanies

B.ThevalueofallstocksintheUSmarket

C.Bondmarketperformance

D.Foreign