2022年内蒙古金融英语考试模拟卷（6）.docx

2022年内蒙古金融英语考试模拟卷（6）本卷共分为2大题50小题，作答时间为180分钟，总分100分，60分及格。一、单项选择题（共44题，每题2分。每题的备选项中，只有一个最符合题意） 1.A money manger works for a full-service brokerage firm. After meeting with a new client and gathering all relevant information, the money manager says that she thinks her firm can perform all the financial services the new client needs. With respect to Standard (C) , Misrepresentation, this:（）A. may not be a violation if the representation was made orally.B. is a violation because she should have gathered the relevant information before the prospect became a client.C. may not be a violation if the manager’s opinion is based upon the factual information gathered.2.On January 5, the U. S. Federal Reserve (the Fed) bought $10000000 of U. S. Treasury securities in the open market. At the time, the reserve requirement was 25 percent, and all banks had zero excess reserves. What is the potential impact of the Fed s purchase on the U. S. money supply（）A. $ 25000000 decrease.B. $ 40000000 increase.C. $ 10000000 increase.3.When preparing a statement of cash flows under the indirect method, the adjustment to net income for an increase in wages payable (WP) and a decrease in the deferred tax liability (DTL) on the balance sheet compared to the prior reporting period is: Increase in WP Decrease in DTL（）A. Negative No adjustment B. Positive Negative C. Positive No adjustmentA. B. C. 4.Justin Banks just won the lottery and is trying to decide between the annual cash flow payment option or the lump sum option. He can earn 8 percent at the bank and the annual cash flow option is $100000/year, beginning today for 15 years. What is the annual cash flow option worth to Banks today（）A. $ 924423.70B. $ 855947.87C. $1500000.005.A money manager and member of CFA Institute is meeting with a prospect. She gives the client a list of stocks and says, "These are the winners I picked this past year for my clients. Their double-digit returns indicate the type of returns I can earn for you." The list includes stocks the manager had picked for her clients, and each stock has listed with it an accurately measured return that exceeds 10 percent. Is this a violation of Standard (D), Performance Presentation()A. Yes, because the manager cannot reveal historical returns of recent stock picks.B. No, because the manager had the historical information in writing.C. Yes, unless the positions listed constitute a complete presentation (i. e. there were no stocks omitted that did not perform in the double digits).6.All of the following are examples of commodity-linked equities EXCEPT:（）A. a gold mining companyB. a supermarket operating companyC. an oil and gas exploration company7.If the null hypothesis is H0:0, what is the appropriate alternative hypothesis()A. Hα:ρ0.B. Hα:ρ=0.C. Hα:ρ0.8.A CFA Institute member is a U. S. citizen living and working in a foreign country. That country has no laws against insider trading. Based on this information, the CFA Institute member may:（）A. not trade using insider information based upon the CFA Institute Standards.B. not trade using insider information based upon the rules of the SEC.C. trade using insider information as long as it is not with a client with laws against insider trading.9.Which combination of interest rate options most likely has the same pattern of payoffs as the short position in a forward rate agreement Interest rate call option Interest rate put option（）A. Long Long B. Long Short C. Short LongA. B. C. 10.The firms target capital structure is consistent with which of the following()A. Minimum WACC.B. Minimum cost of equity (KS).C. Maximum EPS.11.Which of the following statements about the accounting treatment of a zero-coupon bond is least accurate（）A. Each year the imputed interest on a zero-coupon bond is amortized to expense, causing cash flow from operations to decrease.B. Over time the interest expense on the zero-coupon bond will increase as the discount is amortized to interest expense, and the bond liability increases.C. If the zero-coupon bond is redeemed prior to maturity, any amount over or under the bond’s book value should be listed as again or loss on the income statement.12.Joe Turner, CFA attended a family barbecue over the weekend hosted by his wealthy uncle. While mingling during this event he overheard a discussion between three senior executives of Lowry Company, which included details of their upcoming IPO. The next day Joe mentioned this information to his brother Bob, who passed along the details of the IPO to his stockbroker, John Williams. At market opening John purchased a sizable amount of Lowry Company stock. Based on the above, which of the following statements is true()A. Given that the IPO information was discussed publicly at the barbecue either Joe, bob, or John could have acted on this information without violating the Prohibition Against Use of Material Nonpublic Information Standard.B. John violated the Prohibition Against Use of Material Nonpublic InformationStandard by trading on nonpublic information related to an upcoming IPO.C. Joe did not violate the Code and Standard by passing on insider information related to an IPO to his brother.13.A discussion of the economic functions of money and banking produced the following statements: Statement 1: Direct exchange of commodities is less efficient than money exchange because of the search costs involved in finding an individual with whom to trade. Statement 2: The cost of funds for borrowers is lower in an economy that features depository institutions than it would be in an economy that lacked them. Are these statements correct Statement 1 Statement 2（）A. Correct Correct B. Correct Incorrect C. Incorrect CorrectA. B. C. 14.The trading of exchange registered securities over the counter by non-exchange member firms is called:（）A. the third market.B. the fourth market.C. block trading.15.Seth Wong and Roger Pan are enrolled to take the Level I CFA examination. Wong and Pan jointly purchased study materials from a well-know CFA review program. Wong made a photocopy of the copyrighted materials and gave the copied materials to Pan. Wong studied from the original materials. Did Wong and Pan, respectively, violate the CFA Institute Code of Ethics or Standards of Professional Conduct Pan Wong（）A. NO NO B. NO YES C. YES YESA. B. C. 16.Given the following information, compute the price/cash flow ratio for EAV Technology. Net income per share=$ 6 Price per share=$ 100 Depreciation per share=$ 2 Interest expense per share=$ 4 Marginal tax rate=25%（）A. 10.0X.B. 12.5X.C. 8.3X.17.Which of the following is NOT an advantage of technical analysis()A. It does not depend on the analysis of market trading data, such as security prices and trading volume.B. It is relatively easy to implement.C. It tells the analyst when to buy, but not necessarily why investors are buying.18.According to International Financial Reporting Standards, how do cash dividends received from trading securities and available-for-sale securities affect net income Trading securities Available-for-sale securities（）A. Increase IncreaseB. Increase No effectC. No effect Increase19.There is a 50 percent chance that the Fed will cut interest rates tomorrow. On any given day, there is a 67 percent chance the DJIA will increase. On days the Fed cuts interest rates, the probability the DJIA will go up is 90 percent. What is the probability that tomorrow the Fed will cut interest rates or the DJIA will go up（）A. 1.00.B. 0.72.C. 0.33.20.A closed-end fund:（）A. is traded in the primary market but not the secondary market.B. has its price determined by supply and demand, regardless of its net asset value (NAV).C. has its price determined by the net asset value (NAV).21.All else being equal, which of the following bond characteristics will lead to lower levels of coupon reinvestment risk（）A. Longer maturities and higher coupon levels.B. Shorter maturities and lower coupon levels.C. Shorter maturities and higher coupon levels.22.An analyst gathered the following data about a depreciating asset: The company acquired the asset for $ 8000. The asset has a 4-year Useful life and no salvage value. The asset WILL generate $ 5000 a year. The companys tax rate is 40%. For tax purposes, the asset can be depreciated (straight line) over two years. For financial accounting purposes the asset is depreciated (straight line) over four years. Assuming a constant tax rate, what is the deferred tax liability at the end of the second year（）A. $1600.B. $ 400.C. $ 800.23.Which of the following economic schools of thought suggests that the greatest good occurs to the greatest number of people when wealth is transferred from the rich to the poor()A. Symmetry.B. Utilitarianism.C. Utopianism.24.What is the expected rate of return on a stock that has a beta of 1.4 if the market risk premium is 9 percent and the risk-free rate is 4 percent（）A. 16.6%B. 11.0%C. 13.0%25.Over time, the reported amount of the annual interest expense on a long-term bond issued at a discount will:（）A. remain constantB. increaseC. decrease26.Which of the following is least likely to be considered a drawback of utilitarianism()A. Wealth transfer from the rich to the poor is expensive.B. High income earners will work more.C. Cost of tax administration associated with wealth transfers.27.Assume that a company has equal amounts of debt, common stock, and preferred stock. An increase in the corporate tax rate of a firm will cause its weighted average cost of capital (WACC) to:（）A. rise.B. remain the same.C. fall.28.One real estate investment has the following characteristics:AAnnual rental incomeB$18000000CAnnua operating expensesD$1200000EAvailable mortgage rateF6%GFinancing percentageH90%IRequired rate of retumJ15%KEstimated holdng periodL5 yearsMInvestors tax rateN25% 29.Which of the following statements regarding the money supply and determination of short-term interest rates is least accurate（）A. An increase in real GDP will shift the real money demand curve to the right.B. On balance, financial innovation has decreased the demand for money.C. An increase in the real money supply from an initial equilibrium situation will cause house-holds and businesses to sell interest-bearing securities.30.An analyst gathered the following data about a company: The company had 1 million shares of common stock outstanding for the entire year. The companys beginning stock price was $ 50, its ending price was $ 70, and its average price is $ 60. The company has 100000 warrants outstanding for the entire year. Each warrant allowed the holder to buy one share of common stock at $ 50 per share. How many shares of common stock should the company use in computing its diluted earnings per share（）A. 1100000.B. 1016667.C. 1083333.31.Which of the following statements regarding portfolio theory is least likely correct()A. The covariance between the returns on a security and those of the overall market, divided by the variance of the market returns, is a measure of the security’s systematic risk.B. All securities and portfolios plot on the SML when their prices are in equilibrium.C. A security that lies on the CML must be priced at its equilibrium level.32.Which of the following statements about capital budgeting is TRUE()A. Since capital budgeting is based on cash flows rather than net accounting income, changes in noncash balance sheet accounts such as inventory are not relevant to the analysis.B. If an investment project would make use of property that the firm currently owns, the project should not be charged with the opportunity cost (rental income) of the property.C. Any cash flow that can be classified as incremental is relevant in a capital budgeting project analysis.33.One of the most commonly used yield spread measures is the nominal spread. Which of the following is NOT a limitation of nominal spread The nominal spread assumes:()A. an upward sloping yield curve.B. all cash flows can be discounted at the same rate.C. all cash payments will be received in a prompt and timely manner.34.Neil Barton, CFA, and Nancy Roberts, CFA, began a joint research report on Stamp Corporation. Nancy spent several days visiting Stamps corporate headquarters and meeting with all company officers. Prior to the completion of the report, Nancy was reassigned to another project. Nell utilized his and Nancys research to write the report. According to the CFA Institute Standards of practice Handbook, did Nell violate any CFA Institute Standards of Professional Conduct（）A. No.B. Yes, with respect to misrepresentation.C. Yes, with respect to independence and objectivity.35.Without the introduction of a risk-free asset or a zero-beta portfolio, the optimal portfolio on the efficient frontier for each investor is represented by:()A. the point where the investor’s highest indifference curve is tangent to the efficient frontier.B. any point where an indifference curve intersects the efficient frontier.C. the point where the capital market line touches the frontier.36.Garner Corporation is investing $ 30 million in new capital equipment. The present value of future after-tax cash flows generated by the equipment is estimated to be $ 50 million. Currently, Garner has a stock price of $ 28.00 per share with 8 million shares outstanding. Assuming that this project represents new information and is independent of other expectations about the company, what should the effect of the project be on the firms stock price()A. The stock price will remain unchanged.B. The stock price will increase to $ 30.50.C. The stock price will increase to $ 31.75.37.Which of the following statements regarding growth companies and growth stocks is TRUE A growth:（）A. company has management that has the ability to consistently select projects that earn higher returns than required by their risk.B. company will not earn below normal returns.C. company will earn above normal returns given its risk.38.Ravencroft Supplies is estimating its weighted average cost of capital (WACC). Ravencrofts optimal capital structure includes 10 percent preferred stock, 30 percent debt, and 60 percent equity. They can sell additional bonds at a rate of 8 percent. The cost of issuing new preferred stock is 12 percent. The firm can issue new shares of common stock at a cost of 14.5 percent. The firms marginal tax rate is 35 percent. Ravencrofts WACC is closest to:()A. 12.3%.B. 13.3%.C. 11.