International Finance and Treasury – Set 13 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 13 Dear ! This is International Finance and Treasury – Set 13 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Type of bonds which does not have U.S treasury as collateral and are swapped for outstanding loans are classified as collateral bonds sovereign bonds primary bonds secondary bonds 2 / 50 2) Net exports refers to. total exports minus total imports total imports minus total exports exports of merchandise minus imports of merchandised total exports of capital minus depreciation 3 / 50 3) ______________ is (are income received by investors on foreign investments in financial assets securities Portfolio income Direct foreign income Unilateral transfers Factor income 4 / 50 4) Risk arises from trading of assets because of change in asset prices and exchange rates is classified as asset risk trade risk market risk exchange risk 5 / 50 5) Increasing interest rates. discourage corporate investments discourage individuals from saving encourage corporate expansion encourage corporate borrowing 6 / 50 6) In capital markets, major suppliers of trading instruments are government and corporations liquid corporations instrumental corporations manufacturing corporations 7 / 50 7) Type of security backed by mortgage cash flows and are packed by financial instruments is classified as cash mortgage securitized mortgage financial mortgage instrumental mortgage 8 / 50 8) Reduction of risk by holding large number of securities in portfolio of assets is classified as diversification selling ability reduction ability director ability 9 / 50 9) Authority which intervenes directly or indirectly in foreign exchange markets by altering interest rates is considered as centralized instruments centralized stocks central government central corporations 10 / 50 10) International Monetary Fund formal existence came into being in 12-05-44 27-07-44 27-12-45 27-09-45 11 / 50 11) Risk arises when technology system may got malfunction is classified as system risk technology risk operational risk support risk 12 / 50 12) The exchange rate is the. total yearly amount of money changed from one country’s currency to another country’s currency total monetary value of exports minus imports Exchange value of one country currency in terms of another country currency Price of one country currency in terms of another country currency 13 / 50 13) Risk stating assets are sold at low prices because of sudden surge in withdrawals of liabilities is classified as payment risk liquidity risk income risk balance risk 14 / 50 14) Centralized market place where agents can have efficiently and quickly transactions is classified as secondary markets central market traded market agents market 15 / 50 15) Process of selling and buying of stocks and bonds is classified as s-trade b-trade e-trade stock trade 16 / 50 16) Risk of financial institutions which states mismatching assets maturities and liabilities maturities is classified as selling intermediation maturity intermediation direct intermediation indirect intermediation 17 / 50 17) Issuers that are not involved directly in funds transferring are classified as individual issuers corporate issuers local issuers global issuers 18 / 50 18) Type of institutions that write securities, engage in brokerage and security trading are considered as trading institutions activity institutions investment banks mortgage banks 19 / 50 19) Example of derivative securities includes swap contract option contract futures contract all of these 20 / 50 20) Type of structured market through which funds flow with help of financial instruments such as bonds and stocks is classified as financial markets non-financial markets funds market flow market 21 / 50 21) European currency options can be exercised _______; American currency options can be exercised _______. any time up to the expiration date; any time up to the expiration date any time up to the expiration date; only on the expiration date only on the expiration date; only on the expiration date only on the expiration date; any time up to the expiration date 22 / 50 22) LIBOR refers London Inter Bank Offered Rate London International Bank Offered Rate London interest for Bank offering Rate London Interest Bond off shore Rate 23 / 50 23) A banker’s acceptance is a draft drawn on and accepted by an__________. bank importer exporter Agent 24 / 50 24) Type of risk in which payments are interrupted by intervention of foreign governments is considered as channel risk globalization risk state risk country risk 25 / 50 25) Markets in which transactions are done through computers and telephone without any specific location are classified as past counter market future counter market over counter markets capital counter market 26 / 50 26) Maturity of debt instruments which faces more price fluctuations is primary maturity capital maturity short term maturity long term maturity 27 / 50 27) Face value of bond is $685 and call price of bond is $378 then value of call premium is $307 $1,063 $2,063 $3,063 28 / 50 28) Depository institutions such as thrifts includes savings associations savings banks credit unions all of these 29 / 50 29) In foreign financial markets, growth is represented by factors such as savings in foreign countries investment opportunities accessible information all of these 30 / 50 30) The primary component of the current account is the. balance of trade balance of money market flows balance of capital market flows unilateral transfers 31 / 50 31) Situation in which claims by financial institutions than claims issued by corporations is more considerable for investors is classified as asset transformers liability transformers issuing transformers claiming transformers 32 / 50 32) Which year the Bretton Wood agreement failed? 1983 1971 1963 1989 33 / 50 33) Currency in which Eurobonds are denominated is decided by buyers of bond issuers of bonds close market prices open market prices 34 / 50 34) Based on interest rate parity, the larger the degree by which the foreign interest rate exceeds the UK interest rate, the. larger will be the forward discount of the foreign currency larger will be the forward premium of the foreign currency smaller will be the forward premium of the foreign currency smaller will be the forward discount of the foreign currency 35 / 50 35) Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called. commodity markets fund-available markets derivative exchange markets financial markets 36 / 50 36) Conditional currency options are options that do not require premiums options where the premiums are cancelled if a trigger level is reached options that allow the buyer to decide what currency the option will be settled in options with discount 37 / 50 37) Saving banks, insurance companies, mutual funds and commercial banks are all examples of non-financial institutions derivative institutions financial institutions ayable institutions 38 / 50 38) Additional debt instruments or equity instruments of publicly traded firm are included in markets classified as flow market primary markets secondary markets funding markets 39 / 50 39) Institutions deals in financial functions and protects corporations and individuals against accidents, theft and death are considered as penalty companies insurance companies events dealers protecting companies 40 / 50 40) Call premium of bond is $760 and call price of bond is $560 then face value of bond is $200 $300 $1,320 1.38% 41 / 50 41) Money market where debt and stocks are traded and maturity period is more than a year is classified as shorter term markets capital markets counter markets long-term markets 42 / 50 42) Which of the following is not considered a unilateral transfer? foreign aid from one government to another income earned from foreign investments personal gifts to friends in foreign countries donations to foreign countries from non-government 43 / 50 43) Type of market in which securities with less than one year maturity are traded is classified as money market capital market transaction market global market 44 / 50 44) Financial instruments of public markets includes transfer funds bearer bonds shares bonds 45 / 50 45) Legal document required by Securities Exchange Commission stating associated risks and detailed description of issues is classified as prospectus stated document risk detailed document exchange commission document 46 / 50 46) Services provided by financial institutions as providing financing to any specific sector of economy such as real estate business are classified as business allocation sector allocation economic allocation credit allocation 47 / 50 47) The balance of payments always has a zero balance. This is caused by. the working of the foreign exchange market by including errors and omissions the system of double entry bookkeeping .by including reserves and related items 48 / 50 48) Transfer of financial instruments from suppliers of funds to users of funds without any intermediary in between is classified as global transfer pension transfer direct transfer indirect transfer 49 / 50 49) The bond markets are important because. they are easily the most widely followed financial markets in the United States they are the markets where foreign exchange rates are determined they are the markets where interest rates are determined they are the markets without risk 50 / 50 50) Type of financial markets in which corporations issues new funds to raise funds is classified as flow market primary markets secondary markets funding markets 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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