1. The NDF rate is set by .
A. all of the above
B. the four leading dealers
C. the two counterparties of an NDF contract
D. Reuters or Telerate
2. The NDF is settled when .
A. the NDF rate is higher than the current spot rate
B. the difference between the NDF rate and the current spot rate is paid or received
C. the principal amounts of the two currencies are exchanged
D. both the principal and the difference are exchanged
3. According to the passage, which of the following is not mentioned in the passage as the reason for the lower counterparty risks of an NDF ? .
A. NDFs are exchange-traded products
B. NDFs are off-the-balance-sheet products
C. NDFs are non-cash products
D. The principal amounts are not exchanged
4. The main purpose of a corporate in trading NDF is to .
A. enhance the credit standing of their corporate
B. maintain the value of their domestic currency
C. cover foreign currency exposures
D. add liquidity to their overseas investments
5. The word "tenor" in the last paragraph means .
C. nominal principal
D. holder, in-due-course
6. Before joining the Bank of England, Sir John was .
A. a financial analyst
B. a government official
C. a senior butler
D. an accountant
7. According to Sir John Gieve, which of the following is an advantage of London as an international financial center? .
A. the crisis response and management of the government authorities
B. the relative flexibility of the labor market
C. its unskilled labor and their financial knowledge
D. an ineffective and unfair regulatory and legal system
8. Referring to paragraph 4, which of the following best explains why the concentration of skilled labor spurred innovation? .
A. the concentration of skilled labor makes it possible to exchange new thoughts and ideas
B. the skilled labor have multiple cultural backgrounds
C. the people that work in the City of London are well educated
D. the skilled labor from New York are very innovative
9. Compared to financial services sector, the manufacturing sector of UK employs .
A. less workforce and accounts for lower percentage of the UK’s GDP
B. less workforce and accounts for higher percentage of the UK’s GDP
C. half the workforce and accounts for higher percentage of the UK’s GDP
D. more workforce and accounts for lower percentage of the UK’s GDP
10. That the British financial authorities are trying to improve crisis response and management is partly because .
A. ill-judged decisions may throw away the City’s advantages.
B. the regulatory environment is not so good
C. corruption could lead to crisis and damage the City’s advantages
D. operational disorder or fear about security could damage the City’s advantages
11. Which of the following is one of the reasons why the CFOs were leaving their jobs at a faster rate than ever?
A. the cost of labor was growing fast
B. the CFOs were more pessimistic than their chief executives
C. the CFOs’ salaries are under expectation
D. the pressure to deliver improved results was increasing
12. The shorter tenure of CEOs and CFOs might eventually result in .
A. their firm’s prospects being more uncertain than before
B. higher demands of regulators
C. top executive avoiding or changing projects that would pay off after they had left their jobs
D. top executives being burnt-out
13. It could be inferred from the article that the natural optimism of chief executives .
A. encouraged the CFOs to think better about their firm’s prospects
B. had increased the pressure on CFOs to deliver improved results
C. had been encouraged by the CFOs
D. derived from their strategic imagination
14. Which of the following is closest in meaning to “cook the books” (Line2, Para8)?
A. to deliver improved operating results
B. to make accounting records in compliance with demands of regulators
C. to improve the bookkeeping process
D. to provide fault accounting data
15. The main idea of the article can best be summarizes as .
A. optimistic chief executives
B. the hard time for CFOs
C. the overly pessimism of CFOs
D. the shorter tenure of CFOs
16. The Sarbanes-Oxley act is most probably about .
A. corporate scandal
B. corporate management
C. corporate cost
D. corporate governance
17. The word “backlash” (Line 3, Paragraph 2) most probably means .
A. a violent force
B. a strong impetus
C. a strong negative reaction
D. a firm measure