Test on Banking and Finance Name: Group:

I. Match the words on the left with the nouns on the right to form common banking

partnerships and use them to fill in the blanks below. 5pts.

1. open a. this cheque

2. purchase b. interest
3. earn c. goods
4. make d. funds
5. withdraw e. cash
6. pay f. bills
7. transfer g. an account
8. cash h. a deposit

1. Can you ____________ for me?

2. Just by using the key pad on your phone, Citibank lets you
_____________ from wherever you are.
3. Just fill out and return the application form to ____________ at
our bank.
4. On-line banking services lets you _______________ from one
account to another quickly and easily.
5. The Citibank allows you to _____________ in local stores without
carrying cash around.
6. The Citicard allows you __________________ from cash
dispensers all over the world.
7. You can ____________ on your current account balance.
8. You can ______________ into your account from any branch of
our bank without paying any charges.

II. Complete the sentences with the following verbs in the correct form. Use each

verb only once. 10 pts.

make invest give waste withdraw deposit owe lend charge

save

1. I ______________ all the cash and closed my bank account.

2. If you __________ money into our long term fixed deposit you will earn high interest.
3. My stockbroker suggested that I should _________ in a South East Asian Unit Trust.
4. The accountants advised us to repay 15% of what we _________ to the banks.
5. The bank ____________ me $15 for making a simple bank transfer.
6. The bank refused to _____________ a loan of $3000.
7. The company ___________$5,000 to a local school to set up a computer class.
8. The group _________ $4m from investments in overseas companies in 1990.
9. The shareholders criticized the board for ______________ so much money on
unnecessary trips abroad.
10. We _____________$325,000 in administrative costs by reducing the number of staff.

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Test on Banking and Finance Name: Group:

III. Explain the following words in English. 10 pts.

1. bank statement

2. bill of exchange

3. current account

4. deposit account

5. interest rates

6. investment advice

7. letter of credit

8. mortgage

9. overdraft

10. standing order

IV. Fill in the blanks with the appropriate words or phrases. 15 pts.

return on investment depreciation long term balance sheet

cost of goods sold return on equity cash flow inflow

profit and loss statement outflow earnings per share shareholders

exceptional items current accrual

1. The total profit after tax divided by the total number of shares issued is called the

__________________________.

2. The principle of recording sales or purchases in the period regardless of when actual

payment is made or received is called __________________ accounting.

3. The loss in value of some assets over a period of time due to wear and tear is called

___________________.

4. The cash flow statement shows all the money coming in and going out of the company

or in other words the _________________ and the ____________________.

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Test on Banking and Finance Name: Group:

5. Items reported in the profit and loss account that are not regular and usual such as the

costs of closing down a particular operation or branch are called

___________________.

6. Every year we produce an annual report with three key sets of figures:
________________, ________________________, and
_________________________.
7. Cost directly in the production of goods such as labour costs and cost of materials are

called ______________________________.

8. ______________________ liabilities are debts that are to be repaid further in the future

over a number of years whereas ________________ liabilities are those that have to

be paid out or settled during the reporting period.

9. ______________________ are the owners of the company and receive dividends.

10. ______________________ and _________________________ are investment

ratios examined by investors to measure the performance of companies.

V. Choose the best answer a, b, c, or d. 10 pts.

1. The bank granted them a loan for a two year ________________.

a) repayment b) term c) time d) rate

2. Interest is charged at the current rate which is 2.5% above the ____________ rate.

a) lowest b) minimum c) average d) base

3. Stocks, shares and bonds can be collectively called ________________.

a) equities b) gilts c) share capital d) securities

4. Possessions acquired by a company for long term use (e.g. buildings) are called

_________.

a) long term assets b) intangible assets c) current d) fixed assets

assets

5. Profits reached a _____________ when bad debts were at their lowest.

a) lowest point b) peak c) top d) rock bottom

6. After dispatching the goods the exporter ________________ the documents to his

bank.

a) demands b) collects c) presents d) issues

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Test on Banking and Finance Name: Group:

7. A bill of exchange is payable upon _________________________.

a) delivery b) maturity c) remittance d) dispatch

8. _______________ means allowing a currency to find its true level against other

currencies.

a) picking up b) holding up c) bouncing d) floating

9. Investors are looking for high or stable _______________ on their investments.

a) earnings b) performance c) returns d) growth

10. Sales are a good way for _________________ to get rid of surplus stock.

a) dealers b) sellers c) wholesalers d) retailers

VI. Match the following terms with their definitions. 5 pts.

1. tax-deductible a. tax charged on goods and services rather than on

the money that people earn.
2. tax evasion b. a sum that can be taken away from the total amount
of income you must pay tax on.
3. tax exile c. a tax that you have to pay on what you earn, which
is usually higher for people with larger salaries.
4. tax-free
d. ways of illegally paying less tax than you should.
5. tax haven
e. a rich person who has moved to another place
6. tax relief where taxes are lower than in their own country.
f. a form that a self-employed person must fill in to
7. tax return give information about how much they have earned
in a year.
8. tax shelter g. a place where people pay less tax than they would
pay if they lived in their own country.
9. income tax h. the system of allowing someone not to pay tax on a
part of their income.
10. indirect tax
i. you do not pay tax on it.
j. a financial arrangement by which investments can
be made without paying tax.

VII. Answer any two (2) of the following questions. 10 pts.

1. What are the various methods of payment that are used in foreign trade?

2. Which payment method is the most secure for both the exporter and the importer

and why?

3. What is a balance sheet and what are some of the main items that are reflected in
the balance sheet.

Good Luck