You customer asks your bank to handle a colleetion outwards on his behalf. Your bank are ______.
    A. the reimbursing bank                B. the negotiating bank
    C. the remitting bank                   D. the collecting bank

A cheque crossed" account payee" ______.
    A. can only be accepted for the account of the named payee
    B. can be accepted for the credit of an account other than that of the named payee provided the collecting bank makes enquiries
    C. prevents negotiation of the cheque and, therefore, has the same effect as a "notnegotiable" crossing
    D. is an example of a special crossing

The following are the basic functions of a bill of lading except to act as ______.
    A. a receipt for the goods from the shipping company to the exporter
    B. a certificate of origin, which certifies that the goods were produced in a particular country
    C. a document of title to goods being shipped overseas
    D. a quasi negotiable document

In extending loans, one of the principles that a commercial bank persists in is ______.
    A. free from interference of local government
    B. against collateral
    C. based on sole responsibility to its profits and losses
    D. in pursuance of the law of the People's Bank of China

A cheque payable to ABC Company is credited to the personal account of Mr. Gao. The bank ______.
    A. is correct in crediting the account
    B. is merely doing what is requested by its customer
    C. has committed an act of negligence
    D. will make a claim on its principal

Customers trading abroad in foreign currencies may protect against the exchange risk by arranging ______.
    A. a contract of international sale of goods
    B. a contract of marine insurance
    C. a forward contract to fix the exchange rate in advance
    D. contract for the delivery of goods by installment

A company that has the use of a vehicle upon payment of a sum of money on a regular basis over a long period of time is using the finance service of ______.
    A. factoring                             B. hire purchase
    C. leasing                               D. installment credit

A rise in interest rate will cause ______.
    A. an increase in borrowing and a slowing - down of credit creation
    B. a decrease in borrowing and an increase in credit creation
    C. an increase in borrowing and an increase in credit creation
    D. a decrease in borrowing and a decrease in credit creation

There are three ways in which a banker may take security for an advance:
    (1) lien (2) by pledge (3) by mortgage (4) by indemnity
    A. (1), (2), (3)             B. (1), (2), (4)
     C. (2), (3), (4)            D. (1), (3), (4)

International payments and other messages are often sent through an international computer network called ______.
    A. CHAPS          B. SWIFT          C. CHIPS          D. CHATS

accept , discount, against, dishonoured, attached , hypothecation, credit, draw, ownership, amount

   When a Letter of Credit has been confirmed, the agent bank in the seller's country usually asks for the shipping documents, and often corite to the seller to say that they are willing to  (21)   a draft on them for the  (22)  . This draft (another name for Bill of Exchange) is often  (23)   to the shipping documents and is called a Documentary Bill of Exchange. Banks often state that the seller can  (24)   on them for the amount of the Credit.
   A buyer or his bank may ask the seller if he is willing to allow them a period of 30, 60, or 90 days to pay. They may write. "can you present your drafts for 60 d/s?" this is a form of  (25)   and allows the buyer time to pay. The agent bank will normally accept a draft  (26)   documents, because they need them to make sure that the title to  (27)   has been transferred.
   Some times the bank demands a letter of  (28)   so that they have the right to sell the goods if the Bill of Exchange is  (29)   , that is, if the buyer or his bank do not pay. This does not apply to irrevocable documentary credit.
   However, the bank can  (30)   the Bill of Exchange by deducting the interest for the period the draft has to go before maturity.

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A note receivable is a negotiable instrument, which means it is readily transferable from one business or person to another and may be sold for cash. To get cash quickly, payees sometimes sell a note receivable to another party before the note matures. The payee endorses the note and hands it over to the note purchaser--often a bank--who collects the maturity value of the note at the maturity date.
   Selling a note receivable before maturity is called discounting a note receivable because the payee of the note receives less than its maturity value. This lower price decreases the amount of interest revenue the payee earns on the note. Giving up some of this interest is the price the payee is willing to pay for the convenience of receiving cash early.
   Assume that the maturity date of the Dorman note is January 18, 1995 and that General Electric discounts the Dorman note at First City National Bank on December 9, 1994. The discount period--which is the number of days from the date of discounting to the date of maturity (this is the period the bank will hold the note) -- is 40 days; 22 days in December, and 18 days in January. Assume the bank applies a 12 percent annual interest rate in computing the discount value of the note. The bank will want to use a discount rate that is higher than the interest rate on the note in order to increase its earnings. GE may be willing to accept this higher rate in order to get cash quickly. The discounted value, called the proceeds, is the amount that GE receives from the bank. The proceeds are computed as follows:
   General Electric's entry to record discounting the note is:
   Dec. 9, 1994cash                                                      $ 15 170
   Note receivable     Dorman Builders                                     $ 15 000
   Interest Revenue                                                            $ 170
                   TO RECORD DISCOUNTING NOTE RECEIVABLE
   At maturity the bank collects 15 375 from the maker of the note, earning 205 of interest revenue.
   Observe two points in the above computation: (1) The discounting is computed on the maturity value of the note (principal plus interest) rather than on the original principal amount, and (2) the discounting period extends backwards from the maturity date (January 18, 1995) to the date of discounting (December 9, 1994).

What determines the rate of exchange between currencies will be examined later in this booklet, but first it is useful to consider the mechanics of international transactions. To enable a UK importer to pay his American supplier, for example, the facilities of two or more banks are used, firstly in handling the often complex documentation and secondly, through the foreign exchange market, in obtaining the currency required. At one time payments to and from other countries were made by bills of exchange; hence in part the term "exchange rate", which was maintained even though other methods of payment have largely superseded the bill of exchange. The British importer will probably need to pay his American supplier in dollars and his British bank can offer him several alternative methods of settlement. It can provide him with a banker's draft drawn in dollars.  The bank is able to do this because it will have an account with another bank (called a correspondent bank) in an American city and it simply issues a dollar cheque or draft drawn on that account. The British importer can then send this draft by airmail to the supplier.
   Since there is a danger that the draft may be lost or fall into the wrong hands' the safer and more normal method would be for the British bank to arrange for payment by mail transfer. Instructions are sent by airmail to the correspondent bank in the US to pay on behalf of its customer the required sum to the named recipient from the British bank's dollar account. This mail transfer system is very flexible since the instructions for payment can be varied or elaborated to suit practically every kind of requirement.

Bancassurance refers to the sale of insurance products through bank distribution.

Commodity futures refer to contracts to supply quantities of the underlying commodity at a future date.

There are two general ways in which the term "market" is used in economics. First, a market is thought of as a formal or informal organization of buyers and sellers who conduct trades in particular commodities or services. The market may be located at a geographical meeting place, such as your friendly neighborhood bookstore or shopping center (a retail market). A market may be organized over wide areas connected through phones or computer terminals. Although the trading room of the New York Stock Exchange is located in New York City, buyers and sellers who actively participate in this market may conduct their trades from distant locations. This description is the institutional way of looking at a market.
   The second meaning of the word "market" is used in formal economic models. Here the equations that explain the demand and supply of a commodity such as money are sometimes grouped together. Although money is traded in all markets, the reasons for supplying and holding money are thought to be specific enough to warrant separate equations. This is an abstract way to think of the money market.
   New financial assets are traded in primary markets. Financial assets that are resold are traded in secondary markets. Finns that specialize in trading either new or reissued financial assets are called primary and secondary dealers, respectively. Both new and reissued securities are traded in many markets, such as the U. S money market. The New York Stock Exchange, however, is a secondary market.

A consumer with an unused line of credit on his or her credit card account may make retail purchase without presenting a demand deposit check or cash. Unutilized credit card credit is used instead. The line of unutilized credit available to card holders may be a good candidate for inclusion in the definition of money. These credit lines serve as a medium of exchange for the purchase of a wide variety of goods and services. Lines of unutilized credit card credit are similar to unutilized demand deposit overdraft facilities, which allow customers to issue checks for more money than they have on deposit. Overdrafts, which have long been used in Great Britain and Canada, are now widely used in the Unite States, often against bank credit card credit.
   The range of transactions that might be included in computerized credit card transactions is large. Taxicabs, newspaper stands, vending machines, public transportation, street vendors, and highway toll stations, to name but a few places where cash is used, could all, be provided with small machines that store information about purchases. These data sources could be linked into computer terminals at convenient locations or could be entered synchronously with the purchase through centralized communication networks. A centralized electronic funds transfer system could even instantaneously charge the purchases against the buyers' bank accounts and credit the funds to the sellers bank accounts.

以甲银行名义，用正式信函格式写一封英文信给乙银行，内容如下：
   我们感谢你们寄来我们的对账单。在它第4页上，在2006年1月20日有一个 309 488.61美元的借方余额。我们想提示一下，你们转到我们总行账户上的金额应该是 615 105.94美元，而不是934 594.55美元，那天的余额应为10 000.00美元。请核对此事，立即作调整并通知我们。