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) Submitted bids in treasury bills auction consists of types which are competitive bids non-competitive bids treasury bids both a and b 2 / 50 2) 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 3 / 50 3) 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 4 / 50 4) 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 5 / 50 5) Repurchase agreements usually called repos can be traded directly with brokers or dealers functional buyers both a and b 6 / 50 6) Markets which reallocate liquid funds in relatively fixed amounts are classified as capital markets debt markets secondary markets primary markets 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) 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 9 / 50 9) 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 10 / 50 10) Negotiable deposit certificate are traded in secondary markets primary markets direct markets indirect markets 11 / 50 11) Treasury bills are issued to raise significant amount of funds by US treasury Australian treasury Swiss treasury functional treasury 12 / 50 12) Type of instrument whoever holds it gets interest and principal amount is classified as term instrument interim instrument primary instrument bearer instrument 13 / 50 13) 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 14 / 50 14) Funds transferred usually for a day between financial institutions are classified as federal funds bankers debt funds secured funds 15 / 50 15) Treasury bills have high liquidity because of extensive secondary markets extensive primary markets premium money markets discounted money markets 16 / 50 16) Non-competitive bidders get allocation of treasury bills on federal basis last basis firstly basis preferential basis 17 / 50 17) Maximum maturity days of holding commercial paper are 170 days 270 days 120 days 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) Financial instrument such as commercial paper can be sold issued by commercial banks directly with brokers or dealers functional buyers 20 / 50 20) Banks that deals with reciprocal agreements and accounts are considered as correspondent banks non-correspondent banks reciprocal transactions functional banks 21 / 50 21) For a particular security transaction, agreement is ‘repo’ with point of view of security seller security buyer security function security function 22 / 50 22) In Eurodollar market, increase in demand of Euro dollars results in increase in LIBOR decrease in LIBOR increase in KIBOR decrease in KIBOR 23 / 50 23) Liquidity status of certificate of deposit which is more negotiable is considered as certified liquidity term liquidity more liquid less liquid 24 / 50 24) Federal Reserve increases money supply by selling treasury bills buying treasury bills selling Swiss bills buying Swiss bills 25 / 50 25) Federal Reserve increases money supply by selling Swiss bills buying Swiss bills selling treasury bills buying treasury bills 26 / 50 26) Single bid auction of TIPS securities means that all bidders pays indexed prices pays same price pays different price pays inflated prices 27 / 50 27) The demand for heavy loans can cause excess funds for banks deficiencies for banks organized reservation competitive reservations 28 / 50 28) Price which is paid by bidders and is accepted by all other bidders is classified as highest price lowest price zero price peak price 29 / 50 29) 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 30 / 50 30) 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 31 / 50 31) For a particular security transaction, agreement is classified as ‘reverse repo’ with point of view of security liability security buyer security seller security function 32 / 50 32) 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 33 / 50 33) 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 34 / 50 34) 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 35 / 50 35) Investors held commercial papers generally from issuance to maturity within 1 to 2 days within 3 to 4 days within 4 to 5 days 36 / 50 36) Federal funds are loans borrowed and lent on single payment basis monthly payment basis semi-annual payment basis annual payment basis 37 / 50 37) International bankers letter of confirmation letter of transfer letter of credits letter of buying 38 / 50 38) 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% 39 / 50 39) The type of market in which Eurodollar are traded is classified as brokerage market contraction market expansion market Eurodollar market 40 / 50 40) Type of bidding in which bids are met before allocation of competitive bidders is considered as firstly basis preferential basis federal basis last basis 41 / 50 41) 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 42 / 50 42) Certificate of deposits which are usually negotiable are issued by banks financial market stock exchange business corporations 43 / 50 43) 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% 44 / 50 44) 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 45 / 50 45) Principal investors of US treasury bills which are issued by US treasury does not includes mutual funds extensive funds corporations brokers and dealers 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) Negotiable certificate of deposit with one year maturity pays interest annually semi-annually monthly every two weeks 48 / 50 48) Short term promissory notes and are unsecured, not collateralized against securities is classified as notes payable notes receivable commercial paper commercial notes 49 / 50 49) Process of issuing treasury bills is classified as treasury trading auction treasury fund auction treasury bills auction treasury bills transfer 50 / 50 50) Obligations that are issued by US governments and are obligated for short term are classified as 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