International Finance and Treasury – Set 13 January 29, 2025 by aasi Home › Management › International Finance and Treasury International Finance and Treasury International Finance and Treasury – Set 13 📝 Model Practice Set ⚡ Instant Answers & Explanation 🎯 Exam Oriented 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) 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 2 / 50 2) 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 3 / 50 3) Issuers that are not involved directly in funds transferring are classified as individual issuers corporate issuers local issuers global issuers 4 / 50 4) In capital markets, major suppliers of trading instruments are government and corporations liquid corporations instrumental corporations manufacturing corporations 5 / 50 5) In foreign financial markets, growth is represented by factors such as savings in foreign countries investment opportunities accessible information all of these 6 / 50 6) 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 7 / 50 7) 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 8 / 50 8) 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 9 / 50 9) Depository institutions such as thrifts includes savings associations savings banks credit unions all of these 10 / 50 10) Maturity of debt instruments which faces more price fluctuations is primary maturity capital maturity short term maturity long term maturity 11 / 50 11) Type of financial markets in which corporations issues new funds to raise funds is classified as flow market primary markets secondary markets funding markets 12 / 50 12) Financial instruments of public markets includes transfer funds bearer bonds shares bonds 13 / 50 13) 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 14 / 50 14) Additional debt instruments or equity instruments of publicly traded firm are included in markets classified as flow market primary markets secondary markets funding markets 15 / 50 15) 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 16 / 50 16) Risk arises when technology system may got malfunction is classified as system risk technology risk operational risk support risk 17 / 50 17) 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 18 / 50 18) 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 19 / 50 19) Which year the Bretton Wood agreement failed? 1983 1971 1963 1989 20 / 50 20) 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 21 / 50 21) International Monetary Fund formal existence came into being in 12-05-44 27-07-44 27-12-45 27-09-45 22 / 50 22) 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 23 / 50 23) 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 24 / 50 24) 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 25 / 50 25) Example of derivative securities includes swap contract option contract futures contract all of these 26 / 50 26) Saving banks, insurance companies, mutual funds and commercial banks are all examples of non-financial institutions derivative institutions financial institutions ayable institutions 27 / 50 27) 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 28 / 50 28) Increasing interest rates. discourage corporate investments discourage individuals from saving encourage corporate expansion encourage corporate borrowing 29 / 50 29) 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 30 / 50 30) Currency in which Eurobonds are denominated is decided by buyers of bond issuers of bonds close market prices open market prices 31 / 50 31) 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 32 / 50 32) LIBOR refers London Inter Bank Offered Rate London International Bank Offered Rate London interest for Bank offering Rate London Interest Bond off shore Rate 33 / 50 33) 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 34 / 50 34) ______________ is (are income received by investors on foreign investments in financial assets securities Portfolio income Direct foreign income Unilateral transfers Factor income 35 / 50 35) Process of selling and buying of stocks and bonds is classified as s-trade b-trade e-trade stock trade 36 / 50 36) 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 37 / 50 37) 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 38 / 50 38) Type of institutions that write securities, engage in brokerage and security trading are considered as trading institutions activity institutions investment banks mortgage banks 39 / 50 39) 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 40 / 50 40) Risk of financial institutions which states mismatching assets maturities and liabilities maturities is classified as selling intermediation maturity intermediation direct intermediation indirect intermediation 41 / 50 41) 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 42 / 50 42) 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% 43 / 50 43) A banker’s acceptance is a draft drawn on and accepted by an__________. bank importer exporter Agent 44 / 50 44) 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 45 / 50 45) 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 46 / 50 46) 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 47 / 50 47) The primary component of the current account is the. balance of trade balance of money market flows balance of capital market flows unilateral transfers 48 / 50 48) Type of risk in which payments are interrupted by intervention of foreign governments is considered as channel risk globalization risk state risk country risk 49 / 50 49) Centralized market place where agents can have efficiently and quickly transactions is classified as secondary markets central market traded market agents market 50 / 50 50) Reduction of risk by holding large number of securities in portfolio of assets is classified as diversification selling ability reduction ability director ability 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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