BỘ GIÁO DỤC VÀ ĐÀO TẠO
TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN
KHOA: NGOẠI NGỮ KINH TẾ
Bộ môn: Tiếng Anh Thương mại
SECTION 1 - Match the terms with the explanations
Terms
1 Liability management
2 Transaction costs
3 Principal-agent
problem
4 Over-the-counter
market
5 Wholesale market
6 Economies of scale
7 Equities
8 Secondary market
9 Asymmetric
information
10 Bond
11 Asset transformation
12 Default
13 Risk sharing M When different sets of information are available to
14 Excess reserves
15 Financial markets
ĐỀ THI GIỮA KỲ
Chuyên đề Ngân hàng tài chính_E
Hệ: Chính quy Khoá:
Địa điểm thi: .............................................................
Ngày thi: .................................. Ca thi: .................
Thời gian làm bài: 60 phút
Explanations
A Claims to share in the net income and assets of a
corporation
B dealers at different locations who have an inventory of
securities stand ready to buy and sell securities to anyone
who comes to them and is willing to accept their prices,
all through computerized systems
C the failure to pay interest or principal on a loan or security
when due
D The time and money spent trying to exchange financial
assets, goods, or services.
E A debt security that promises to make payments
periodically for a specified period of time.
F The process by which financial intermediaries create and
sell assets with risk characteristics that people are
comfortable with and then use the funds they acquire by
selling these assets to purchase other assets that may have
far more risk.
G bank relies on its liabilities to provide liquidity;
supplements asset management, but does not replace it
H funds are transferred from people who have a surplus of
available funds to people who have a shortage of
available funds here
I Savings that can be achieved through increased size
J Market where extremely large transactions occur, as for
money market funds or foreign currency
K Funds held by banks above required reserves
L A moral hazard problem that occurs when the managers
in control act in their own interest rather than in the
interest of the owners due to differing set of incentives.
different participants in the market
N The process by which the financial intermediaries turn
risky assets into safer assets for investors.
O Trading securities previously issued takes place in
Answer:
1. 4. 7. 10. 13.
2. 5. 8. 11. 14.
3. 6. 9. 12. 15.

SECTION 2 – Fill in the blanks with correct words or phrases

- In general, banks make profits by selling (16)______________ liabilities and buying
(17)______________ assets.
- (18)______________, i.e. financial intermediaries and financial markets, are important for economic
growth. They can lead to a more efficient (19)______________ of resources because they reduce the
(20)______________ of moving funds between borrowers and lenders, and help overcome an
(21)______________ between borrowers and lenders. If they do not function well the economy cannot
operate efficiently and economic growth will be negatively affected.
- Financial (22)______________ are able to develop (23)______________ to lower transaction costs. Their
use of computer technology enables them to offer customers convenient services like being able to call a
toll-free number for information on how well their investments are doing and write checks on their accounts.
- (24)______________ are bank accounts that allow the owner of the account to write (25)______________
to third parties. They are payable on demand, that is if a depositor shows up at the bank and requests
payment by making a withdrawal, the bank must pay the depositor immediately.
Answer:
16. 18. 20. 22. 24.
17. 19. 21. 23. 25.

SECTION 3 – Multiple Choice Questions

26. When you deposit a $50 bill in the Security Pacific National Bank, ________
A) its liabilities decrease by $50.
B) its assets increase by $50.
C) its reserves decrease by $50.
D) its cash items in the process of collection increase by $50.

27. Which of the following are primary concerns of the bank manager?
A) Maintaining sufficient reserves to minimize the cost to the bank of deposit outflows
B) Extending loans to borrowers who will pay low interest rates, but who are poor credit risks
C) Acquiring funds at a relatively high cost, so that profitable lending opportunities can be realized
D) Maintaining high levels of capital and thus maximizing the returns to the owners.

28. Of the following, which would be the first choice for a bank facing a reserve deficiency?
A) Call in loans
B) Borrow from central bank
C) Sell securities
D) Borrow from other banks
29. The ________ problem helps to explain why the private production and sale of information cannot
eliminate ________.
A) free-rider; adverse selection
B) free-rider; moral hazard
C) principal-agent; adverse selection
D) principal-agent; moral hazard

30. In which market is market-based system less important than bank-based system?
A) Germany
B) The USA
C) The UK
D) None of the above

31. From the perspective of firm's fund raising, which statement below is incorrect?
A) The dominance of financial intermediation over financial markets is clear in all countries.
B) In most countries, retained earnings are the most important source of finance.
C) Financial markets are not as an important source of finance.
D) Loans represent the most important source of finance in terms of funds raised internally.

32. Asymmetric information means that ________.

A) all parties to a transaction have the same amount of information on the other party.
B) information is expensive to obtain.
C) one party to a transaction has relatively more information than another party.
D) information is readily available for most parties concerned in a transaction.

33. Moral hazard ________.

A) results from the incentive for some people to engage in a transaction that is undesirable to everyone
else.
B) is when a party to a transaction has relatively more information than another party.
C) is when the actions of a group of individuals have undesirable effects on a given individual.
D) results from the chance that an individual may have an incentive to act in such a way as to put that
individual at a greater risk.

34. Bank capital is equal to ________ minus ________.

A) total liabilities; total reserves
B) total liabilities; total assets
C) total assets; total reserves
D) total assets; total liabilities

35. The bank's reserve ratio is defined as:

A) the proportion of total loans to total deposits
B) the proportion of total deposits to total loans
C) the proportion of total deposits held in reserve
D) the proportion of vault cash to total deposits

36. Which of the following is not included among the liabilities of a bank?
A) Loans
B) Equity
C) Borrowings
D) Non-transaction deposits

37. Which of the following are reported as liabilities on a bank’s balance sheet?
A) Cash items in the process of collection
B) Discount loans
C) Local government securities
D) Commercial loans

38. Reduction in transactions costs per dollar of investment as the size of transactions increases is
A) discounting
B) economies of scale
C) economies of trade
D) diversification

39. Which of the following risks do banks face?

A) Interest rate risk
B) Market risk
C) Credit risk
D) All of the above
E) Only A and C
Answer:
26. 29. 32. 35. 38.
27. 30. 33. 36. 39.
28. 31. 34. 37.

SECTION 4 – Answer the questions

40. If the bank you own has no excess reserves and a sound customer comes in asking for a loan, should
you automatically turn the customer down, explaining that you don’t have any excess reserves to loan out?
Why or why not? What options are available for you to provide the funds your customer needs?
41. Why is being nosy a desirable trait for a banker?