A bond is issued by a guarantor, usually a bank or an insurance company, on behalf of exporter. It is a guarantee to the buyer that the exporter will fulfill his contractual obligations. If these obligations are not fulfilled, the guarantor undertakes to pay a sum of money to the buyer in compensation. This sum of money can be anything from 1% to 100% of the contract value.
   If the bond is issued by a bank, then the exporter is asked to sign a counter indemnity which authorizes the bank to debit his account with any money paid out under the bond.
   Bonds are usually serried in connection with overseas contracts, or with the supply of capital goods and services. When there is a buyer's market, the provision of a bond can be made an essential condition for the granting of the contract. Middle Eastern countries commonly require bonds, but nowadays many other countries also require them. Most international aid agencies, such as the World Bank or the European Development Fund, and most government purchasing organizations in the developing world, now require bonds from sellers.

Liabilities that will be due within a short time (usually one year or less) and that are to be paid out of current assets are called ______.
   A. long-term trust                             B. long-term liabilities
   C. current liabilities                            D. current investment

The cost-volume-profit (C-V-P) analysis can be used in making decisions about ______ and so on.
   A. selling prices                                B. production volume
   C. levels of discretionary fixed costs           D. all the three above

Which of the following is not among the generally accepted accounting principles?
   A. Cash basis.         B. Prudence.          C. Consistency.      D. Going concern.

To whom is an endorser liable if the bill of exchange is dishonored?
   A. the payee                                    B. the drawer
   C. a previous endorser                        D. a subsequent endorser or holder

The money market is a dealer market where, over the telephone or through electronic systems, ______.
   A. a broker receives commission to act as an agent
   B. the investors are trading on a central trading floor
   C. firms buy and sell securities in their own accounts, at their own risk
   D. individual investors can trade on the exchange

A major problem with a fixed exchange rate system is that when countries run foreign trade deficits, ______.
   A. there is no self-correcting mechanism
   B. currency values become unstable
   C. the value of the reserve currency declines
   D. world inflation increases

The available resources for the IMF to finance lending are ______.
   A. gold reserves                              B. quotas
   C. currencies of strong economies             D. all of the above

From the point of view of a Chinese bank, ______ is our bank's account in the books of an overseas bank, denominated in foreign currency.
   A. a vostro account                             B. a nostro account
   C. a mirror account                             D. a record account

In order to  (56)   foreign exchange administration, maintain strong balance of payments position, China  (57)   the Regulations on Foreign Exchange Administration on January 29,1996. The State Administration of Foreign Exchange is the agency responsible for foreign exchange administration. The SAFE has a similar branch structure with that of the People's Bank of China, China's central bank. The Bank of China  (58)   the principal foreign exchange bank. Other banks and financial institutions,  (59)   affiliates of non-resident banks,  (60)   designed transactions with the approval of the SAFE.

34. 
A. develop            B. improve            C. change           D. conduct

35. 
A. declared            B. abandoned          C. drafted            D. promulgated

36. 
A. remains             B. becomes             C. appoints           D. will be

37. 
A. containing          B. including            C. involving          D. covering

38. 
A. may handle         B. can deal            C. must conduct     D. are ordered to

On the balance sheet, assets and liabilities are classified as either  (61)   or long-term to indicate their relative liquidity. Liquidity is a  (62)   of how quickly an item may be converted to cash. Therefore,  (63)   is the most liquid asset. Accounts receivable are a  (64)   liquid asset because the business expects to collect the amount in cash in the near future.  (65)   are less liquid than accounts receivable, and furniture and buildings are even less so.

39. 
A. short-term          B. current              C. circulating        D. futures

40. 
A. item               B. measure            C. means            D. way

42. 
A. relatively           B. highly              C. primarily         D. originally

43. 
A. Facilities           B. Commodities        C. Devices           D. Supplies

The BIS is the central bankers' central bank. It is very discreet, and very influential. It was founded in 1930 to act as a trustee for the loans associated with the Young Plan for Germany Reparations. The first members of the bank were the central banks of Belgium, France, Germany, Italy, Japan and the United Kingdom, together with three private U. S. banks. The Federal Reserve Bank subsequently became a member alone with all the major European central banks. Current membership consists of 30 central banks, of which 25 are European plus the United States, Canada, Australia, and South Africa. (The BIS was unique in having Alhania and South Africa as co-member. ) The board of directors is composed of the governors of the central banks of Belgium, France, Germany, Italy, and the United Kingdom, together with co-opted directors from among the governors of those member central banks that do not have a representative on the board.
   The BIS has three main functions. It acts as a bank, primarily as a central bankers' bank; it acts as a gathering place for central hankers, a vehicle for international monetary cooperation; and it acts as trustee for various international loans. The BIS's role as an intermediary provides a number of advantages to other central banks. The first is anonymity : sometimes it is not convenient for a central bank to be seen to withdraw its funds from the market. The second is risk spreading: a deposit with the BIS is very safe since the bank is highly liquid. Finally, deposits placed with the BIS can usually be withdrawn at very short notice.

The handy ATM/debit card you've packed for your big overseas vacation may be packed with fees. Many banks charge fees whenever a customer uses an ATM/debit card outside the United States. Debit cards, such as the Visa Check Card and MasterCard Money, are linked to a cardholder's checking account and can be used for purchases and to withdraw money from overseas ATMs. Foreign-fee double whammy.
   Most banks zap customers with USD1.50 to USD5 fees for using overseas ATMs.  And now some major banks are charging customers 2-percent fees for each debit card purchase made while traveling abroad. These new fees come on top of 1 percent fees long charged by Visa and MasterCard for transactions involving foreign currency.
   "If your bank is adding 2 percent it's simply because they see it as a way of getting extra money out of you," says Ed Perkins, a nationally syndicated travel columnist and consumer advocate. "By the time your bank gets the charge it's already in dollars. " When you make a purchase with a credit card or debit card, you pay an overseas merchant in local currency.  But the charge that shows up on your credit card bill or bank statement is in US dollars.

Assets are the economic resources of the business that can be usefully expressed in monetary terms. Liabilities, or creditors, equity, are the obligations, or debts, that the firm must pay in money or services at some time in the future. They therefore represent creditor's claims on the assets of the firm. The owner's interest is equal to the net assets of the business, which is defined as the difference between the assets and liabilities. Thus, owner's equity is the residual claim--a claim to the assets remaining after the debt to creditors has been discharged.

Foreign exchange markets provide services for international investors or financiers such as forward transactions and foreign currency futures to eliminate certain risks.

The reform of Chinese foreign exchange system accelerated in 1994 with the introduction of conditional current account convertibility, unification of exchange market and adoption of a market-based managed floating exchange rate.

The central bank usually acts as a lender of last resort to protect commercial banks against a temporary liquidity drain.

In services like fund transfer, clearing, trust and factoring, banks act as agents for their principals-the clients.

你所在银行收到伦敦的GGG银行2008年5月寄来的请求建立代理关系的信件，但考虑到两国之间目前有限的贸易量，仅凭已建有代理关系的H市ABC行已能完全应付，因此婉拒请求。