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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-4

Each section contains 100 MCQs on International Finance and Treasury .
51
Rate of return on non-callable bonds is $890 and value of issuer option is $670 then return on callable bond is
Discuss
Answer & Solution
Answer: Option B
Solution:
Return on callable bond = Rate of return on non-callable bonds + Value of issuer option
= $890 + $670 = $1,560
52
Private placement of issues is consisted as
Discuss
Answer & Solution
Answer: Option B
Solution:
Private placement of issues is consisted as unregistered issue. Private placement (or non-public offering) is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors.
53
Temporary imbalances between operating receipts and operating expenditures are funded with help of
Discuss
Answer & Solution
Answer: Option C
Solution:
Temporary imbalances between operating receipts and operating expenditures are funded with help of municipal bonds. Municipal bonds are loans investors make to local governments. They are issued by cities, states, counties, or other local governments. For that reason, the interest they pay on the bonds is tax-free.
54
Type of bonds that have tangible property as a collateral are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Type of bonds that have tangible property as a collateral are classified as equipment trust certificates. An equipment trust certificate (ETC) refers to a debt instrument that allows a company to take possession of and enjoy the use of an asset while paying for it over time. The debt issue is secured by the equipment or physical asset. During this time, title for the equipment is held in trust for the holders of the issue.
55
Municipal bonds are traded to finance
Discuss
Answer & Solution
Answer: Option B
Solution:
Municipal bonds are traded to finance long term capital outlays. Municipal bonds are loans investors make to local governments. They are issued by cities, states, counties, or other local governments. For that reason, the interest they pay on the bonds is tax-free.
56
For municipal bonds, trading in secondary markets are classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
For municipal bonds, trading in secondary markets are classified as infrequent trading. Infrequent trading Comprehensive databases have recently become 'available for stock ex- changes in which many securities are traded only intermittently.
57
Holders of debentures receive their payments or bonds yields only after holders of
Discuss
Answer & Solution
Answer: Option B
Solution:
Holders of debentures receive their payments or bonds yields only after holders of secured debt holders. Secured debt is debt backed or secured by collateral to reduce the risk associated with lending, such as a mortgage. If the borrower defaults on repayment, the bank seizes the house, sells it and uses the proceeds to pay back the debt.
58
Information about sovereign borrowers and corporate borrowers is generated by the
Discuss
Answer & Solution
Answer: Option A
Solution:
Information about sovereign borrowers and corporate borrowers is generated by the bond rating agencies. Bond rating agencies are companies that assess the creditworthiness of both debt securities and their issuers. Credit rating agencies publish the ratings and used by investment professionals to assess the likelihood that the debt will be repaid.
59
Bonds with coupon are attached to bond for paying interest when it becomes due are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Bonds with coupon are attached to bond for paying interest when it becomes due are classified as bearer bonds. A bearer bond is a fixed-income instrument that is owned by whoever is holding it, rather than having a registered owner.
60
In New York Stock exchange, fully automated information and trading system which allows to execute orders for bonds is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
In New York Stock exchange, fully automated information and trading system which allows to execute orders for bonds is classified as automated bond system. The Automated Bond System automatically records any and all movements in the bid and ask prices for inactive bonds until they are bought, sold, or canceled.