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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-6 section-3

Each section contains 100 MCQs on International Finance and Treasury .
51
In financial markets, separate trading of registered interest and principal securities have abbreviation of
Discuss
Answer & Solution
Answer: Option B
Solution:
In financial markets, separate trading of registered interest and principal securities have abbreviation of STRIPS. They are securities that represent the separate interest and principal components of Treasuries.
52
Dimensions in bonds markets are
Discuss
Answer & Solution
Answer: Option D
Solution:
Dimensions in bonds markets are treasury notes and bonds, corporate bonds and municipal bonds.
53
Yield on subordinated bonds as compared to non-subordinated bonds is considered as
Discuss
Answer & Solution
Answer: Option A
Solution:
Yield on subordinated bonds as compared to non-subordinated bonds is considered as highly risky and higher yields. Subordinated debentures are thus also known as junior securities. In the case of borrower default, creditors who own subordinated debt will not be paid out until after senior bondholders are paid in full.
54
Treasury bills are issued on
Discuss
Answer & Solution
Answer: Option D
Solution:
Treasury bills are issued on discount basis. 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.
55
Value of option issued to call debt is subtracted from rate of return on callable bond to calculate rate of return on
Discuss
Answer & Solution
Answer: Option B
Solution:
Value of option issued to call debt is subtracted from rate of return on callable bond to calculate rate of return on non-callable bonds. A noncallable security is a financial security that cannot be redeemed early by the issuer except with the payment of a penalty. The issuer of a noncallable bond subjects itself to interest rate risk because, at issuance, it locks in the interest rate it will pay until the security matures.
56
Issues sold by investment banks and guarantees issuer by buying new issue at fixed price is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Issues sold by investment banks and guarantees issuer by buying new issue at fixed price is classified as firm commitment underwriting. A firm commitment has three general meanings in finance, but is most known as an underwriter's agreement to assume all inventory risk and purchase all securities for an initial public offering (IPO) directly from the issuer for sale to the public. It is also known as "firm commitment underwriting" or "bought deal."
57
Conversion values is $8500 and conversion rate received on stock conversion is 430 then current market price of stock is
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
58
As compared to publicly placed issues, privately placed bonds are issued for
Discuss
Answer & Solution
Answer: Option B
Solution:
As compared to publicly placed issues, privately placed bonds are issued for higher paid interest rates. Privately placed securities are those that are sold directly to institutional investors instead of being offered for sale to the general public. Privately placed securities are usually bond issues, including corporate bonds; they also include other debt instruments as well as equity securities.
59
Minimum denominations of municipal bonds are
Discuss
Answer & Solution
Answer: Option A
Solution:
Typically, municipal bonds have a minimum denomination of $5,000, but some issuers may impose a higher minimum denomination, most commonly in the amount of $100,000.
60
Type of Eurobonds which are convertible are considered as
Discuss
Answer & Solution
Answer: Option B
Solution:
Type of Eurobonds which are convertible are considered as related to equity. Eurobonds are generally issued by corporation and governments needing secure, long-term funds and are sold through a geographically diverse group of banks to investors around the world.