International Finance and Treasury – Set 12 January 29, 2025 by aasi 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 International Finance and Treasury – Set 12 Dear ! This is International Finance and Treasury – Set 12 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Securities with lower default risk and having highest credit quality are assigned rating of double B triple B triple A double A 2 / 50 2) When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as interest rate risk channel rate risk economic risk issuance risk 3 / 50 3) Risk which arises from insufficient capital available to balance sudden decrease in assets value is classified as insolvency risk solvency risk balanced risk unbalanced risk 4 / 50 4) Bonds having longer maturity on original loans than promised payments are classified as developed bonds developing bonds Brady bonds swapped bonds 5 / 50 5) Technique by which companies reduce cost of transaction services and results in increased efficiency is classified as economies of cost economies of scale economies of efficiency economies of transaction 6 / 50 6) As compared to Treasury bonds, trading of municipal bonds in trading market is considered as more index inflation less indexed inflation less active more active 7 / 50 7) Exchange markets and over counter markets are considered as two types of floating market risky market secondary market primary market 8 / 50 8) Financial securities issued by local and state governments are classified as municipal bonds reserve bonds state bonds federal bonds 9 / 50 9) Treasury bonds and notes pays interest rate is classified as LIBOR rate monthly coupon interest monthly coupon interest semi-annually coupon interest annually 10 / 50 10) Type of financial security having payoffs which are connected to some securities issued some time back is classified as linked security previous security payoff security derivative security 11 / 50 11) Bonds that are backed by cash flow from project and are sold to finance particular project are classified as finance bonds revenue bonds financing bonds project bonds 12 / 50 12) Money market where securities are issued by governments to obtain funds for short term is classified as money market instruments capital market instruments counter instruments long term instruments 13 / 50 13) Depository institutions includes mutual funds commercial banks and thrifts savings banks credit unions 14 / 50 14) Market value size of outstanding instruments of capital markets depends on factors primary cash flows number of issued securities market prices of securities both b and c 15 / 50 15) Financial intermediaries that make loans available and accept long term and short term debts for funding are considered as activity institutions investment companies mortgage companies finance companies 16 / 50 16) If trading of municipal bonds is infrequent, then secondary market is considered as thin markets thick markets higher underwriting lower underwriting 17 / 50 17) Current selling price of municipal bonds available to bond holders is used to calculate yield to income tax yield to municipal bonds yield to tax rate yield to revenue bonds 18 / 50 18) Major liabilities of commercial banks are junk bonds deposits loans swap bonds 19 / 50 19) Call premium is $640 and face value of bond is $285 then call price of bonds is $2.25 $355 $925 2.25% 20 / 50 20) Institutions classified as depository ones and have loans as their major assets are classified as commercial banks commercial mortgages credit mortgages credit derivative 21 / 50 21) Type of risk in which value of liabilities and assets is affected by exchange rate is classified as economic rates foreign exchange risk selling rate buying rates 22 / 50 22) In money markets, excess supply of funds from agents is for past terms future terms long term short term 23 / 50 23) Risk which arises all activities from contingent liabilities and assets is considered as off balance sheet risk income statement risk balance of trade risk balance of payment risk 24 / 50 24) Difference between face value of bond and call price of bond is considered as call premium call provision discount premium discount provision 25 / 50 25) Type of bonds in which there are many maturity dates and part of issue is paid off at every maturity date is considered as pledged bonds serial bonds series bonds parallel bonds 26 / 50 26) Depository institutions that concentrate loans in one segment such as consumer loans are considered as thrifts state bank global bank multinational institutions 27 / 50 27) Current market price of common stock is $15 and conversion rate received on conversion is $320 to calculate $3,800 $2,800 $4,800 $5,800 28 / 50 28) In financial transactions, risk that there will be no profit in selling of this asset is classified as price risk profit risk selling risk financial risk 29 / 50 29) Placement of financial issue in which investment bank and municipality together finds large buyers is classified as reserve placement federal placement private placement government placement 30 / 50 30) Federal funds, bankers acceptance, commercial paper and repurchase agreements are classified as counter instruments long term instruments money market instruments capital market instruments 31 / 50 31) In commercial banks, subordinate debentures and subordinate notes are considered as stated rates banks debentures banks liabilities banks deposits 32 / 50 32) Treasury notes that provide returns tied to inflation rate are classified as clean price bonds discount index bonds premium index bonds inflation index bonds 33 / 50 33) Bond holder can make profit by returning bonds and exchanging with other securities if market value with conversion value exceed non-convertible value exceed collateral value exceed mortgage value exceeds market value of bond 34 / 50 34) Eurobonds are placed for buying and selling in primary markets by investment banks commercial banks euro transfer agencies currency deposit banks 35 / 50 35) Ability of an asset to be converted in to cash very quickly is classified as variable securities convertible securities liquidity constant securities 36 / 50 36) Exchange rate of foreign currency fluctuate day to day because of demand and supply increased maturity decreased maturity instrument availability 37 / 50 37) Source of funds for repayment of municipal bonds is considered as local tax and revenue global tax and revenue print notes commercial notes 38 / 50 38) Corporate equities or corporate stocks represent portion in instruments of capital markets which is largest smallest never paid none of these 39 / 50 39) Companies that collects funds from companies and individuals and invest in portfolios of assets are classified as activity funds mutual funds penalty funds financing funds 40 / 50 40) Bonds which are denominated in dollars and are issued in canters of London and Luxemburg are classified as London bonds Eurodollar bonds central bonds decentralize bonds 41 / 50 41) Auction of TIPS security is classified as premium bid auction discount bid auction multiple bid auction One bid auction 42 / 50 42) Major assets of commercial banks are commercial loans consumer loans deposits both a and c 43 / 50 43) Considering yields of bonds, secured bonds as compared to unsecured bonds have higher yields lower yields untimed yields termed yields 44 / 50 44) Financial intermediaries offering savings plans to individuals and funds are exempted from taxation are considered as trading funds penalty funds pension funds global funds 45 / 50 45) Bonds that are considered investment rating bonds are given rating of triple B rating bonds double B triple A double A 46 / 50 46) Risk faced by financial institutions in which advancement of technology does not produce savings in cost is classified as savings risk advance risk cost risk technology risk 47 / 50 47) IN negotiated sale, services provided by investment banks are origination services document collection services advising services both a and c 48 / 50 48) Type of markets in which derivative securities are traded is classified as derivative security markets trading markets classified markets non-trading markets 49 / 50 49) Institutions that facilitate channelling of funds and all related functions are classified as financial institutions payable institutions non-financial institutions derivative institutions 50 / 50 50) If financial intermediaries are appointed by funds suppliers then these intermediaries are classified as supplier monitor funds monitor delegated monitor allocation monitor Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this quiz with your friends and see who scores the highest! 🏆🤩🔥 LinkedIn Facebook Follow Us @ 0% Restart quiz Exit We’d love to hear your thoughts! 📝 Share your valuable review with us. 🙌 🌟 Thank you for your support! 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