International Finance and Treasury – Set 7 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 7 Dear ! This is International Finance and Treasury – Set 7 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Commercial papers cannot be converted in to cash with easy and quick transactions because of lack of organized secondary markets organized primary market organized interest markets organized money markets 2 / 50 2) According to demand for funds curve, demand curve shifts to right if there is increase in equilibrium demand equilibrium interest rate equilibrium supply equilibrium savings 3 / 50 3) Suppliers, funds consumers, foreign and government intervening intermediaries are classified as participants of financial markets setting interest arte setting compounding rate setting savings rate 4 / 50 4) Group of dealers and brokers in financial institutions also includes money and security brokers capital brokers mortgage brokers expansionary brokers 5 / 50 5) Drafts which are backed up by banks and are payable to seller of products or services are classified as banker acceptance secured acceptance unsecured acceptance economic acceptance 6 / 50 6) Forgone amount for holding balances of cash at time they are received is classified as forgone cost debt cost opportunity cost balances cost 7 / 50 7) Promissory notes issued by company for short term fund raising and are unsecured are classified as unsecured notes debt paper term paper commercial paper 8 / 50 8) Interest rate at which federal funds are borrowed and can be lent is classified as borrowing rate supplying rate lending rate federal funds rate 9 / 50 9) Special provisions that can have adverse or beneficial effects and are reflected in interest rates does not include tax-ability covert ability call ability inflation premium 10 / 50 10) Overnight loans transaction are part of trading of extensive funds federal funds intensive funds premium funds 11 / 50 11) Financial instruments traded in money markets are then traded in money markets capital markets debt markets economic markets 12 / 50 12) Accounting entry of institutions who borrows federal funds is as income in income statement expense on income statement liability on balance sheet assets on balance sheet 13 / 50 13) Transaction of federal funds usually take place in form of functional loans annual loans unsecured loans secured loans 14 / 50 14) Repurchase price is $380, selling price is $310 and number of days till maturity are 4 then yield of repurchase agreement is 2500 9.58% 11.58% 16.58% 12.58% 15 / 50 15) Repurchase agreements having maturity of longer term have denominations of $40 million $10 million $20 million $30 million 16 / 50 16) Most flexible and liquid source of funding for savings banks is annual loan market federal funds market functional funding market secured funding market 17 / 50 17) Transactions in market of treasury bills is mostly transacted over telephone and hence classified as decentralized centralized federalize commercialize 18 / 50 18) Deposit issued by bank, usually negotiable and have specific maturity date and interest rate is classified as indirect certificate direct certificate negotiable certificate deposit certificate 19 / 50 19) If 175 days T-bill have maturity of one year with value of $8000 and face value is $10000 then reported discount yield is 52.50% 41.14% 42.14% 45.14% 20 / 50 20) Bidder who can receive allocation of treasury bills before all other bidders is result of highest bidder lower bidder zero bidder non-competitive bidder 21 / 50 21) According to loanable funding theory, net suppliers of funds are insurance companies government corporations households 22 / 50 22) Loan-able funds theory is used to determine savings interest rate future value present value 23 / 50 23) The transactions that came into being when borrowing and lending of excess money occurs are considered as annual funds transaction liable funds transactions federal funds transaction functional funds transaction 24 / 50 24) Interest rate equilibrium is decreased and supply curve of funds shifts to right is result of increase in total wealth decrease in total wealth increase in future value decrease in future value 25 / 50 25) Equilibrium interest rate decreases and economic conditions increases then supply curve must shift to up and to left up and to right down and to left down and to right 26 / 50 26) Agreement which incurs transaction between two parties and promise held that second party will repurchase security at specific price is classified as repurchasing commercial notes repurchase bills repurchase agreement reverse repurchase agreement 27 / 50 27) Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as selling window buying window premium window discount window 28 / 50 28) Loans for education and medical is classified as loans for equilibrium goods non-equilibrium goods durable goods non-durable goods 29 / 50 29) Factors that can affect nominal interest rates in financial transactions includes special provisions liquidity and default risk inflation and real interest rate all of these 30 / 50 30) In treasury bills auction, treasury bills are sold at premium basis discount basis competitive basis federal basis 31 / 50 31) Type of market in which short term instruments are traded and purchased by economic units is classified as money markets capital markets debt markets economic markets 32 / 50 32) Type of negotiable certificate of deposits is usually classified as primary instrument bearer instrument term instrument interim instrument 33 / 50 33) Principal issuer of commercial papers are commercial banks and major investors of principal investors includes brokers and dealers corporations other financial institutions all of these 34 / 50 34) Retail certificate of deposits which are not traded have face value of $250,000 $100,000 $150,000 $200,000 35 / 50 35) If there is improve in economic condition in foreign countries, local community of investors start investing abroad investing in domestic markets increase in sovereign risk increase in country risk 36 / 50 36) Interest rate equilibrium is increased and supply curve of funds shifts to left or upward is result of increase in future value decrease in future value increase in total wealth decrease in total wealth 37 / 50 37) For other non-price conditions, decrease in equilibrium interest rate leads to increase restrictiveness decrease restrictiveness zero restrictiveness negative restriction 38 / 50 38) Limit of getting treasury bills auctioned in a treasury auction is that no bidder can get more than 35.00% 30.00% 25.00% 20.00% 39 / 50 39) Type of funds that have transfer transactions between financial institutions are classified as federal funds premium funds discount funds mean funds 40 / 50 40) Financial instrument which is used to raise funds for working capital is considered as commercial paper commercial notes notes payable notes receivable 41 / 50 41) Non-competitive bidding of treasury bills also allows participation of secured investors federal investors small investors large investors 42 / 50 42) Government issues treasury bills at discounted rate from face value book value premium value federal value 43 / 50 43) Selling price is added in to repurchase agreement paid interest to calculate direct price of security repurchase price of securities purchase price of security transaction price of security 44 / 50 44) Type of Eurodollars deposits denominated in banks outside United States is classified as mutual certificate of deposit euro dollar certificate of deposit expansionary certificate of deposit euro dollar contraction deposit 45 / 50 45) Bankers acceptance which is usually time draft is fully backed by commercial banks Swiss banks agriculture banks functional banks 46 / 50 46) Repurchase price is subtracted from selling price divided by selling price and multiplied to 360 by number of days Up to maturity to calculate repurchase agreement yields purchase agreement yields repurchase yields transaction yields 47 / 50 47) Difference between purchase price of treasury bills and face value of treasury bills is considered as premium discount return mean value 48 / 50 48) Funds provided by suppliers of funds in financial markets are classified as compounded funds savings funds supply of loan-able funds demand of loan-able funds 49 / 50 49) Economic period in which banks have excess funds is classified as functional time line contract timing contraction period expansionary periods 50 / 50 50) Repurchase price is $250, selling price is $150 and number of days till maturity are 5 then yield of repurchase agreement is 2500 8.00% 18.80% 28.80% 38.80% 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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