8. What function is money serving when you buy a ticket to a movie? ______.

　　A. store of value

　　B. a medium of exchange

　　C. transaction demand

　　D. a unit of account

　　9. If foreigners expect that the future price of sterling will be lower, the ______.

　　A. supply of sterling will increase, demand for sterling will fall, and the

　　exchange rate will fall

　　B. supply of sterling will increase, demand for sterling will rise, and the

　　exchange rate may or may not increase

　　C. supply of sterling will fall, demand for sterling will increase, and the exchange rate will rise

　　D. supply of sterling will fall, demand for sterling will fall, and the exchange rate may or may not fall

　　10. The documentary collection provides the seller with a greater degree of protection than shipping on ______.

　　A. open account

　　B. bank's letter of guarantee

　　C. banker's draft

　　D. documentary credit

　　11. Which of the following statements is not true of central banks? ______.

　　A. They pay the government's salaries

　　B. They always undertake the regulation of the banking system

　　C. They are always the lender of last resort

　　D. None of the above

　　12. When GBP/USD rate goes from 1.6150 to 1.8500, we say the dollar ______.

　　A. appreciates by 12.70%

　　B. depreciates by 14.55%

　　C. depreciates by 12.70%

　　D. appreciates by 14.55%

　　13. According to diversification principle in investment, suppose you invest Stock X and Stock Y with equal funds, which of the following is not true? ______.

　　A. If X and Y are totally independent with each other, the risk of the portfolio is reduced

　　B. If X and Y are perfectly negatively correlated, the risk of the portfolio is perfectly offset

　　C. If X and Y are perfectly positively correlated, the risk of the portfolio is neither reduced nor increased

　　D. If X and Y are perfectly negatively correlated, the risk of the portfolio is neither reduced nor increased

　　14. These are four main methods of securing payment in international trade:

　　(1) payment under documentary credit

　　(2) open account

　　(3) collection, that is document against payment or acceptance of a bill of exchange

　　(4) payment in advance

　　From an exporter's point of view, the order of preference is ______.

　　A. (4) , (2) , (3) , (1)

　　B. (4) , (1) , (3) , (2)

　　C. (4) , (3) , (1) , (2)

　　D. (2) , (4) , (1) , (3)