Section III Translation

　　Directions:

　　In this section there is a passage in English. Translate the passage into Chinese and write your translation on ANSWER SHEET 2. (15 points)

　　That firms which strive hard to sustain profits may act incautiously is a concern in many industries. The severity of today’s financial crisis is blamed by some on the pressure of competition on banks. There is a bulky academic literature that links liberalization of markets with an increase in bank failures. It argues that the lifting of restraints, such as interest-rate caps on deposits or rules that prevent banks from operating in certain markets, leads to more intense competition. That is good for borrowers, but it also hurts banks’ profit margins by reducing the “franchise value” that comes from expected earnings.

　　A diminished franchise is not only bad for shareholders. By reducing the stake that banks have in their own long-term survival it may make bank failures more likely. A bank that could look forward to a stream of fat profits in a sheltered market would be careful to lend prudently to avoid a bankruptcy that would destroy the franchise.

　　Section IV Writing

　　Part A

　　Directions:

　　You want to recommend Mr. Yang to Professor Li Hong to find a position for the former. Write a letter based on the following outline:

　　1) personal information about Mr. Yang (curriculum vitae, personality, job capabilities etc.), and

　　2 ) your sincere hope.

　　You should write about 100 words. Do not sign your own name at the end of the letter. Use “Li Ming” instead. You do not need to write the address.

　　Part B

　　Directions:

　　Study the following chart carefully and write an essay in which you should

　　1) describe the chart briefly

　　2) interpret the causes of it

　　3) give your point of view

　　You should write more than 150 words neatly on ANSWER SHEET 2. (15 points)