ExamVeda
Login
Home

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-4 section-5

Each section contains 100 MCQs on International Finance and Treasury .
31
Short term promissory notes and are unsecured, not collateralized against securities is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Short term promissory notes and are unsecured, not collateralized against securities is classified as commercial paper. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities.
32
Principal investors of US treasury bills which are issued by US treasury does not includes
Discuss
Answer & Solution
Answer: Option A
Solution:
Principal investors of US treasury bills which are issued by US treasury does not includes mutual funds. United States Treasury securities are government debt instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation.
33
Federal Reserve increases money supply by
Discuss
Answer & Solution
Answer: Option C
Solution:
Federal Reserve increases money supply by selling 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.
34
Financial instrument which is used to raise funds for working capital is considered as
Discuss
Answer & Solution
Answer: Option A
Solution:
Financial instrument which is used to raise funds for working capital is considered as commercial paper. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities.
35
Bankers acceptance which is usually time draft is fully backed by
Discuss
Answer & Solution
Answer: Option A
Solution:
Bankers acceptance which is usually time draft is fully backed by commercial banks. Commercial banks make money by providing loans and earning interest income from those loans.
36
Retail certificate of deposits which are not traded have face value of
Discuss
Answer & Solution
Answer: Option B
Solution:
Retail certificate of deposits which are not traded have face value of $100,000. A certificate of deposit (CD) is a product offered by banks and credit unions that offers an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.
37
Promissory notes issued by company for short term fund raising and are unsecured are classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Promissory notes issued by company for short term fund raising and are unsecured are classified as commercial paper. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities.
38
Type of negotiable certificate of deposits is usually classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Type of negotiable certificate of deposits is usually classified as bearer instrument. A bearer instrument, or bearer bond, is a type of fixed-income security in which no ownership information is recorded and the security is issued in physical form to the purchaser.
39
Limit of getting treasury bills auctioned in a treasury auction is that no bidder can get more than
Discuss
Answer & Solution
Answer: Option A
Solution:
Limit of getting treasury bills auctioned in a treasury auction is that no bidder can get more than 35.00%.
40
Group of dealers and brokers in financial institutions also includes
Discuss
Answer & Solution
Answer: Option A
Solution:
Group of dealers and brokers in financial institutions also includes money and security brokers. A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed.