International Finance and Treasury – Set 8 January 29, 2025 by aasi Home › Management › International Finance and Treasury International Finance and Treasury International Finance and Treasury – Set 8 📝 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 8 Dear ! This is International Finance and Treasury – Set 8 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) International bankers letter of confirmation letter of transfer letter of credits letter of buying 2 / 50 2) Process of issuing treasury bills is classified as treasury trading auction treasury fund auction treasury bills auction treasury bills transfer 3 / 50 3) 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 4 / 50 4) Federal Reserve increases money supply by selling treasury bills buying treasury bills selling Swiss bills buying Swiss bills 5 / 50 5) Short term promissory notes and are unsecured, not collateralized against securities is classified as notes payable notes receivable commercial paper commercial notes 6 / 50 6) Type of instrument whoever holds it gets interest and principal amount is classified as term instrument interim instrument primary instrument bearer instrument 7 / 50 7) Federal reserve, money market brokers and dealers, mutual funds and US treasury are all participants of liquid markets money markets transaction markets functional markets 8 / 50 8) Obligations that are issued by US governments and are obligated for short term are classified as bankers treasury treasury bills treasury funds secured treasury 9 / 50 9) 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% 10 / 50 10) Financial instrument such as commercial paper can be sold issued by commercial banks directly with brokers or dealers functional buyers 11 / 50 11) 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 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) 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 14 / 50 14) 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 15 / 50 15) The demand for heavy loans can cause excess funds for banks deficiencies for banks organized reservation competitive reservations 16 / 50 16) Funds transferred usually for a day between financial institutions are classified as federal funds bankers debt funds secured funds 17 / 50 17) Investors held commercial papers generally from issuance to maturity within 1 to 2 days within 3 to 4 days within 4 to 5 days 18 / 50 18) Commercial paper issued with low interest rate thus commercial paper are categorized as payables rating commercial rating poor credit rating better credit rating 19 / 50 19) In Eurodollar market, increase in demand of Euro dollars results in increase in LIBOR decrease in LIBOR increase in KIBOR decrease in KIBOR 20 / 50 20) Type of bonds which is fully backed by credit and faith of issuer is classified as general obligation tax general obligation savings general obligation bonds general obligation notes 21 / 50 21) Principal investors of US treasury bills which are issued by US treasury does not includes mutual funds extensive funds corporations brokers and dealers 22 / 50 22) Banks that deals with reciprocal agreements and accounts are considered as correspondent banks non-correspondent banks reciprocal transactions functional banks 23 / 50 23) 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% 24 / 50 24) For a particular security transaction, agreement is ‘repo’ with point of view of security seller security buyer security function security function 25 / 50 25) Certificate of deposits which are usually negotiable are issued by banks financial market stock exchange business corporations 26 / 50 26) 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 27 / 50 27) Federal Reserve increases money supply by selling Swiss bills buying Swiss bills selling treasury bills buying treasury bills 28 / 50 28) Treasury bills are issued to raise significant amount of funds by US treasury Australian treasury Swiss treasury functional treasury 29 / 50 29) Submitted bids in treasury bills auction consists of types which are competitive bids non-competitive bids treasury bids both a and b 30 / 50 30) For a particular security transaction, agreement is classified as ‘reverse repo’ with point of view of security liability security buyer security seller security function 31 / 50 31) Treasury bills have high liquidity because of extensive secondary markets extensive primary markets premium money markets discounted money markets 32 / 50 32) Negotiable certificate of deposit with one year maturity pays interest annually semi-annually monthly every two weeks 33 / 50 33) 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 34 / 50 34) 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 35 / 50 35) 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 36 / 50 36) 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 37 / 50 37) Single bid auction of TIPS securities means that all bidders pays indexed prices pays same price pays different price pays inflated prices 38 / 50 38) Liquidity status of certificate of deposit which is more negotiable is considered as certified liquidity term liquidity more liquid less liquid 39 / 50 39) Maximum maturity days of holding commercial paper are 170 days 270 days 120 days 5 days 40 / 50 40) 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 41 / 50 41) Type of bidding in which bids are met before allocation of competitive bidders is considered as firstly basis preferential basis federal basis last basis 42 / 50 42) 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 43 / 50 43) Negotiable deposit certificate are traded in secondary markets primary markets direct markets indirect markets 44 / 50 44) Price which is paid by bidders and is accepted by all other bidders is classified as highest price lowest price zero price peak price 45 / 50 45) 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 46 / 50 46) Non-competitive bidders get allocation of treasury bills on federal basis last basis firstly basis preferential basis 47 / 50 47) Markets which reallocate liquid funds in relatively fixed amounts are classified as capital markets debt markets secondary markets primary markets 48 / 50 48) The type of market in which Eurodollar are traded is classified as brokerage market contraction market expansion market Eurodollar market 49 / 50 49) Repurchase agreements usually called repos can be traded directly with brokers or dealers functional buyers both a and b 50 / 50 50) Federal funds are loans borrowed and lent on single payment basis 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