TERMINOLOGY OF TRADE AND FINANCE Part 4+ Test 4+/Version A
Name: ………………………………………………. Score: ……………..
Date: ……………………………………………….
Task 1 Decide if the following statements are true (T) or false (F)
1. Securitization is a way of transferring risk away from the balance sheet of the originator. ….
2. The word ‘vulnerability’ means resilience and resistance to adverse circumstances. ….
3. Securitization is a financial practice developed in the 21st century. ….
4. Credit card receivables cannot be part of consolidated debt. ….
5. CMOs are collateralized mortgage obligations. ….
Task 2 Complete the following statements:
1. Securities which generate interest can be called …………………………………………………………………………
2. The originator sells a pool of securities to …………………………………………………………………………………….
3. Securitization can help to ……………………………………………………………………………………………………………..
4. The contractual debt employed in the process of securitization includes …………………………………….
…………………………………………………………………………………………………………………………………………………………
5. ‘To diffuse risk’ means to ……………………………………………………………………………………………………………..
Task 3 Complete the sentences.
1. The rate payments received by the investor can be either ………………………… or ………………………….
2. SPV purchases and handles securitized assets …………………………….. sheet.
3. ……………………………. of contractual debt is a cheap way of raising money.
4. Securitization leaves …………………….. for a decline in ………………………. Standards.
5. Auto loans have shorter ………………………. and more predictable timing of ………………………………….
Task 5 Provide the English equivalents of the words and phrases given below.
1. dla celów rachunkowości 5. Obsługiwać dług
2. usuwać z bilansu
3. brak zewnętrznej kontoli
4. ukrywać skalę zadłużenia
TERMINOLOGY OF TRADE AND FINANCE Part 4+ Test 4+/Version B
1. The issuer goes bankrupt when the originator goes broke. …..
2. Securitization cannot cover student loans. …..
3. A special purpose vehicle is an entity set up by the central bank. …..
4. The term ‘reference portfolio’ refers to assets removed from the balance sheet with the purpose of being resold as securitized securities. …..
5. Initially, securitization involved residential mortgages. …..
1. Securitization consists in ………………………………………………………………………………………………………………
2. The SPV…………………………………………………………………………………………………………………………………………
3. Securitization facilitates ……………………………………………………………………………………………………………….
4. The acquisition of the pooled assets is financed by ………………………………………………………………………
5. One of the weaknesses of securitization is ……………………………………………………………………………………
1. The investor ………………………... rate payments from cash flows …………………………. by the pooled assets.
2. Securitization ……………………………………. the development of risky capital structures.
3. Securitization leads to ……………………………………. in lending and collateral standards.
4. The originator ……………………….. the assets it wants to ………………… from the balance sheet and ………………… them together.
5. The issuer finances the …………………………………. of the securities pooled by the originator.
1. portfel papierów wartościowych 5. opłata za obsługę
2. okazać się podatnym na (wahania rynku)
3. zachowanie kierujące się chciwością
4. oceniać i kontrolować ryzyko
A
1. for accounting puposes
2. to remove from the balance sheet
3. absencje of external control
4. to hide the extent of leverage
5. to service a debt
B
1. port folio of securities
2. to prove vulnerable to market fluctuations
3. greed-guided behavior
4. to assess and control risk
5. service fee
agaroze