Directions:

　　Read the following text. Choose the best word(s) for each numbered blank and mark A,B,C or D on ANSWER SHEET 1(10 points)

　　America's Federal Reserve cut interest rates by another quarter- point, to 3.75%. Wall Street, which had been  1   for a sixth half- point cut, was disappointed. The Dow fell by 2%  2   the week. The past week's economic statistics gave mixed signals. Exports dropped by 2% in both March and April, largely   3   a decline in high- tech investment   4  ; the merchandise-trade   5   widened to $458 billion in the 12 months   6   April.   7  , the Conference Board's index of consumer confidence was higher than   8   in June.

　　Concerns   9   inflation in the euro area  10   . Preliminary data   11   that German consumer-price inflation fell to 3.1% in the year to June, from 3.5% in May; wage growth   12  to 1.4% in April, a real pay cut of 1.5%. Some economists fear that Germany is on the  13  of recession. The IFO index of business confidence dropped more  14   than expected in May, and the institute has cut its forecast of GDP  15   this year to only 1.2%, well  16  the German government's forecast of 2%.

　　The euro area's current-account deficit narrowed to $30 billion in the 12 months to April. Britain's deficit in the first quarter was its smallest  17   1998,  18   record investment income.

　　There was more bad news from Japan,   19  retail sales in large stores fell by 3.2% in May, the 37th consecutive monthly fall. The yen fell  20   the dollar, touching almost Yen 125 on one point.

　　1. A expecting B. hoping C. wishing  D. dreaming

　　2. A. in  B. above  C. during   D. over

　　3. A. because of  B. as a consequence of   C. because  D. thanks to

　　4. A. at home  B. home  C. at abroad  D. abroad

　　5.A. deficit  B. shortage  C. scarcity  D. shortfall

　　6. A. to  B. until  C. up  D. onto

　　7. A. Although  B. Therefore  C. However   D. Hence

　　8. A. projected  B. planned  C. predicted  D. expected

　　9. A. over  B. for   C. about  D. above

　　10. A. stopped  B. eased  C. relieved  D. improved

　　11. A. showed  B. demonstrated  C. illustrated  D. explained

　　12. A. reduced  B. cut  C. slow  D. lessoned

　　13. A. edge  B. rim  C. lip  D. brink

　　14. A stridently  B. sharply  C. harshly  D. severely

　　15. A. growth  B. rise  C. increase  D. escalation

　　16.A above  B. below  C. high  D. low

　　17. A. after  B since  C. until  D. towards

　　18. A, owe to  B. because of  C. on account of  D. thanks to

　　19. A. where  B. which  C. what  D. who

　　20. A. in opposition to B. opposed to  C. against  D. versusv