International Finance and Treasury – Set 8 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 8 Dear ! This is International Finance and Treasury – Set 8 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Commercial paper issued with low interest rate thus commercial paper are categorized as payables rating commercial rating poor credit rating better credit rating 2 / 50 2) Liquidity status of certificate of deposit which is more negotiable is considered as certified liquidity term liquidity more liquid less liquid 3 / 50 3) Investors held commercial papers generally from issuance to maturity within 1 to 2 days within 3 to 4 days within 4 to 5 days 4 / 50 4) Interest rate paid on traded Eurodollars is called as London intra bank offered rate London interbank offered rate euro interbank offered rate demand intra bank rate 5 / 50 5) Price which is paid by bidders and is accepted by all other bidders is classified as highest price lowest price zero price peak price 6 / 50 6) Banks that deals with reciprocal agreements and accounts are considered as correspondent banks non-correspondent banks reciprocal transactions functional banks 7 / 50 7) Interest rate of certificate of deposits is quoted using a time span of 250 days a year 150 days a year 365 day a year 360 day a year 8 / 50 8) In borrowing and lending of federal funds, federal funds rate is result of function between assets and liability cost and marketing supply and demand income and expense 9 / 50 9) Treasury bills have high liquidity because of extensive secondary markets extensive primary markets premium money markets discounted money markets 10 / 50 10) The demand for heavy loans can cause excess funds for banks deficiencies for banks organized reservation competitive reservations 11 / 50 11) Type of instrument whoever holds it gets interest and principal amount is classified as term instrument interim instrument primary instrument bearer instrument 12 / 50 12) Bids of bidder which tells that how much treasury bills bidder wants to buy is classified as federal acceptance bid bankers non-competitive bids competitive bids 13 / 50 13) Certificate of deposits which are usually negotiable are issued by banks financial market stock exchange business corporations 14 / 50 14) Markets which reallocate liquid funds in relatively fixed amounts are classified as capital markets debt markets secondary markets primary markets 15 / 50 15) In Eurodollar market, increase in demand of Euro dollars results in increase in LIBOR decrease in LIBOR increase in KIBOR decrease in KIBOR 16 / 50 16) Call premium is added to face value of bond to calculate call price of bond premium price of bond call price of stock discounted price of stock 17 / 50 17) International bankers letter of confirmation letter of transfer letter of credits letter of buying 18 / 50 18) The type of market in which Eurodollar are traded is classified as brokerage market contraction market expansion market Eurodollar market 19 / 50 19) Funds transferred usually for a day between financial institutions are classified as federal funds bankers debt funds secured funds 20 / 50 20) Negotiable deposit certificate are traded in secondary markets primary markets direct markets indirect markets 21 / 50 21) Type of bidding in which bids are met before allocation of competitive bidders is considered as firstly basis preferential basis federal basis last basis 22 / 50 22) Agreement which incurs transaction between two parties and promise held that second party will sell security at specific maturity is classified as repurchasing commercial notes repurchase bills purchase agreement reverse repurchase agreement 23 / 50 23) Process of issuing treasury bills is classified as treasury trading auction treasury fund auction treasury bills auction treasury bills transfer 24 / 50 24) Maximum maturity days of holding commercial paper are 170 days 270 days 120 days 5 days 25 / 50 25) Negotiable certificate of deposit with one year maturity pays interest annually semi-annually monthly every two weeks 26 / 50 26) Federal funds are loans borrowed and lent on single payment basis monthly payment basis semi-annual payment basis annual payment basis 27 / 50 27) Federal reserve, money market brokers and dealers, mutual funds and US treasury are all participants of liquid markets money markets transaction markets functional markets 28 / 50 28) Obligations that are issued by US governments and are obligated for short term are classified as bankers treasury treasury bills treasury funds secured treasury 29 / 50 29) Rate which is used in major banks in United States as a rate for industrial and commercial loans is London intra bank offered rate London interbank offered rate euro interbank offered rate demand intra bank rate 30 / 50 30) Federal Reserve increases money supply by selling treasury bills buying treasury bills selling Swiss bills buying Swiss bills 31 / 50 31) Principal investors of US treasury bills which are issued by US treasury does not includes mutual funds extensive funds corporations brokers and dealers 32 / 50 32) Rates of certificate of deposits are mostly negotiated between bank and COD buyer bank and stock market stock market and COD buyer indirect negotiations of buyers 33 / 50 33) Single bid auction of TIPS securities means that all bidders pays indexed prices pays same price pays different price pays inflated prices 34 / 50 34) Financial instrument such as commercial paper can be sold issued by commercial banks directly with brokers or dealers functional buyers 35 / 50 35) If 180 days T-bill have maturity of one year with value of $9250 and face value is $10000 then reported discount yield is 20.00% 13.00% 14.00% 15.00% 36 / 50 36) Repurchase price is $250, selling price is $220 and number of days till maturity are 3 then yield of repurchase agreement is 2500 11.36% 16.36% 15.36% 14.36% 37 / 50 37) Federal Reserve increases money supply by selling Swiss bills buying Swiss bills selling treasury bills buying treasury bills 38 / 50 38) In Eurodollar market, decrease in demand of Euro dollars results in increase in KIBOR decrease in KIBOR decrease in federal funds rate increase in federal funds rate 39 / 50 39) Treasury bills are issued to raise significant amount of funds by US treasury Australian treasury Swiss treasury functional treasury 40 / 50 40) Investors who want cash flows in near terms shows preference for interest portion of RIAPS interest portion of STORI interest portion of STRIPS interest portion of bonds 41 / 50 41) For a particular security transaction, agreement is classified as ‘reverse repo’ with point of view of security liability security buyer security seller security function 42 / 50 42) Repurchase agreements having maturity of one week or lesser have denominations of $10 million or more $20 million or more $25 million or more $15 million or more 43 / 50 43) Submitted bids in treasury bills auction consists of types which are competitive bids non-competitive bids treasury bids both a and b 44 / 50 44) For a particular security transaction, agreement is ‘repo’ with point of view of security seller security buyer security function security function 45 / 50 45) Repurchase agreements usually called repos can be traded directly with brokers or dealers functional buyers both a and b 46 / 50 46) Accounting entry of institutions who lends federal funds to other institutions is as liability on balance sheet assets on balance sheet income in income statement expense on income statement 47 / 50 47) Non-competitive bidders get allocation of treasury bills on federal basis last basis firstly basis preferential basis 48 / 50 48) Type of bids which states complete description about quantity of bids and prices of bids is classified as markets bid bankers bid competitive bids non-competitive bids 49 / 50 49) Short term promissory notes and are unsecured, not collateralized against securities is classified as notes payable notes receivable commercial paper commercial notes 50 / 50 50) Type of bonds which is fully backed by credit and faith of issuer is classified as general obligation tax general obligation 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