【正文】 10. An indication that the money supply is greater than the desirable amount would be .A. insufficient spending and excessive savingB. deflationC. inadequate spending and rising unemploymentD. rising wages and prices11. If a nation39。2 058 long $3 370 000 at B. Long 163。s salaries B. They always undertake the regulation of the banking system C. They are always the lender of last resortD. None of the above 12. When GBP/USD rate goes from to , we say the dollar ______.A. appreciates by % B. depreciates by %C. depreciates by % D. appreciates by % 13. According to diversification principle in investment, suppose you invest Stock X and Stock Y with equal funds, which of the following is not true? ______.A. If X and Y are totally independent with each other, the risk of the portfolio is reduced B. If X and Y are perfectly negatively correlated, the risk of the portfolio is perfectly offsetC. If X and Y are perfectly positively correlated, the risk of the portfolio is neither reduced nor increasedD. If X and Y are perfectly negatively correlated, the risk of the portfolio is neither reduced nor increased 14. These are four main methods of securing payment in international trade:(1) Payment under documentary credit(2) Open account(3) Collection that is document against payment or acceptance of a bill of exchange(4) Payment in advanceFrom an exporter39。1. Which of the following is not a function of money? ______.A. To act as a medium of exchange B. To act as a unit of accountC. To act as a store of valueD. To provide a double coincidence of wants E. To act as a means of payment 2. The price in the foreign exchange market is called ______.A. the trade surplusB. the exchange rate C. the money price D. the currency rate 3. Market risk refers to the risk of______.A. financial prices fluctuations B. defaultC. fraudD. deferred payments 4. Which of the following is not among the generally accepted accounting principles? ______.A. Cash basis B. PrudenceC. Consistency D. Going concern E. Money measurement.5. What is a documentary letter of credit? ______.A. A conditional bank undertaking to pay an exporter on production of stipulated documentation B. A method of lending against documentary securityC. An international trade settlement system biased in favor of importersD. All of the above 6. Holding a group of assets reduces risk as long as the assets ______.A. are perfectly correlated B. are pletely independentC. do not have precisely the same pattern of returns D. have a correlation coefficient greater than one 7. An amount, payable in money goods, or service, owed by a business to a creditor, is known as a/an .A. liability B. debtC. equityD. asset8. What function is money serving when you buy a ticket to a movie? ______.A. store of value B. a medium of exchange C. transaction demand D. a unit of account 9. If foreigners expect that the future price of sterling will be lower, the ______.A. supply of sterling will increase, demand for sterling will fall, and the exchange rate will fall B. supply of sterling will increase, demand for sterling will rise, and the exchange rate may or may not increaseC. supply of sterling will fall, demand for sterling will increase, and the exchange rate will riseD. supply of sterling will fall, demand for sterling will fall, and the exchange rate may or may not fall 10. The documentary collection provides the seller with a greater degree of protection than shipping on ______.A. open account B. bank39。s point of view, the order of preference is ______.A. (4) , (2) , (3) , (1) B. (4) , (1) , (3) , (2) C. (4) , (3) , (1) , (2) D. (2) , (4) , (1) , (3) 15. The main liability on a bank balance sheet is ______.A. deposits B. capital and reservesC. loans and overdrafts D. cash 16. ______ shows that net ine for a specified period of time and how it was calculated.A. The ine statement B. The capital statementC. The accounting statementD. The statement of financial condition 17. Why must the liabilities and assets of a bank be actively managed? ______.A. Because assets and liabilities are not evenly matched on the same time scale B. Because assets and liabilities are evenly matchedC. Because the inter bank market uses LIBORD. Because assets and liabilities can be underwritten 18. If the expected returns of two risky assets have a perfect negative correlation, then risk .A. is increased B. falls to zero C. is unaffected D. is reduced by onehalf 19. A possible disadvantage of freely fluctuating exchange rates with no official intervention is that .A. some