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International Finance and Treasury MCQ Questions and Solutions with Explanations | Management

International Finance and Treasury MCQ Questions and answers with easy and logical explanations. Management provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. International FinanceMCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management department exam. Page-3 section-5

Each section contains 100 MCQs on International Finance and Treasury .
21
Negotiable deposit certificate are traded in
Discuss
Answer & Solution
Answer: Option A
Solution:
Negotiable deposit certificate are traded in secondary markets. The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.
22
Type of bidding in which bids are met before allocation of competitive bidders is considered as
Discuss
Answer & Solution
Answer: Option B
Solution:
Type of bidding in which bids are met before allocation of competitive bidders is considered as preferential basis. Bidding is an offer to set a price by an individual or business for a product or service or a demand that something be done.
23
Federal Reserve increases money supply by
Discuss
Answer & Solution
Answer: Option B
Solution:
Federal Reserve increases money supply by buying treasury bills. Treasury Bills, also known as T-bills are the short-term money market instrument, issued by the central bank on behalf of the government to curb temporary liquidity shortfalls.
24
Negotiable certificate of deposit with one year maturity pays interest
Discuss
Answer & Solution
Answer: Option B
Solution:
Negotiable certificate of deposit with one year maturity pays interest semi-annually. A negotiable certificate of deposit (NCD) is a certificate of deposit with a minimum face value of $100,000. They are guaranteed by the bank and can usually be sold in a highly liquid secondary market, but they cannot be cashed in before maturity.
25
Obligations that are issued by US governments and are obligated for short term are classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Obligations that are issued by US governments and are obligated for short term are classified as treasury bills. Treasury Bills, also known as T-bills are the short-term money market instrument, issued by the central bank on behalf of the government to curb temporary liquidity shortfalls. These do not yield any interest, but issued at a discount, at its redemption price, and repaid at par when it gets matured.
26
Federal reserve, money market brokers and dealers, mutual funds and US treasury are all participants of
Discuss
Answer & Solution
Answer: Option B
Solution:
Federal reserve, money market brokers and dealers, mutual funds and US treasury are all participants of money markets. The money market is the trade in short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders.
27
Repurchase agreements usually called repos can be traded
Discuss
Answer & Solution
Answer: Option D
Solution:
Repurchase agreements usually called repos can be traded directly and with brokers or dealers. A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities.
28
In Eurodollar market, increase in demand of Euro dollars results in
Discuss
Answer & Solution
Answer: Option A
Solution:
In Eurodollar market, increase in demand of Euro dollars results in increase in LIBOR. Deposits from overnight out to a week are priced based on the fed funds rate. Prices for longer maturities are based on the corresponding London Interbank Offered Rate (LIBOR).
29
Type of bids which states complete description about quantity of bids and prices of bids is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Type of bids which states complete description about quantity of bids and prices of bids is classified as competitive bids. Competitive bidding is a process of issuing a public bid with the intent that companies will put together their best proposal and compete for a specific project.
30
If 180 days T-bill have maturity of one year with value of $9250 and face value is $10000 then reported discount yield is
Discuss
Answer & Solution
Answer: Option D
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