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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-7 section-4

Each section contains 100 MCQs on International Finance and Treasury .
61
Types of notes and bonds issued by Treasury are
Discuss
Answer & Solution
Answer: Option D
Solution:
Types of notes and bonds issued by Treasury are fixed principal and inflation indexed.
62
Number of covenants related to issued bonds are included in
Discuss
Answer & Solution
Answer: Option B
Solution:
Number of covenants related to issued bonds are included in bond indenture. A bond indenture is a legal document or contract between the bond issuer and the bondholder that records the obligations of the bond issuer and benefits owed to the bondholder.
63
In US treasury, inflation indexed bond is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
In US treasury, inflation indexed bond is classified as treasury inflation protection securities. Treasury Inflation-Protected Securities (TIPS) are a form of U.S. Treasury bond designed to help investors protect against inflation. These bonds are indexed to inflation, have U.S. government backing, and pay investors a fixed interest rate as the bond's par value adjusts with the inflation rate.
64
Non-competitive bids of securities are submitted through
Discuss
Answer & Solution
Answer: Option C
Solution:
Non-competitive bids of securities are submitted through Federal Reserve banks. The Federal Reserve System is the central bank of the United States and arguably the most powerful financial institution in the world. The Federal Reserve System was founded by the U.S. Congress in 1913 to provide the nation with a safe, flexible, and stable monetary and financial system.
65
Type of markets which trades underwritten bonds syndicated by some other countries is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Type of markets which trades underwritten bonds syndicated by some other countries is classified as international markets. An international market is defined geographically as a market outside the international borders of a company's country of citizenship. A company, to the extent that it is a legally distinct entity from its owners like a corporation, is usually a citizen of the country where it is organized.
66
Year in which Eurobonds are issued for first time in financial markets is
Discuss
Answer & Solution
Answer: Option A
Solution:
Year in which Eurobonds are issued for first time in financial markets is 1963. On July 1, 1963, Autostrade had issued the world's first eurobond. Despite its name, the bond was dollar-denominated and pitched at US currency investors operating across national borders.
67
When bonds are called and redeem, they must be ceased to
Discuss
Answer & Solution
Answer: Option A
Solution:
When bonds are called and redeem, they must be ceased to earn interest. Investors who purchase a company's bonds receive interest on the bond and are promised a return on their investment at a future date. The future date is when a bond matures. Usually, the bond issuer repays the bond principal to the investor on the maturity date.
68
Foreign bonds that are issued before Eurobonds are also called as
Discuss
Answer & Solution
Answer: Option A
Solution:
Foreign bonds that are issued before Eurobonds are also called as traditional international bonds. An international bond is a debt investment that is issued in a country by a non-domestic entity. International bonds are issued in countries outside of the United States, in their native country's currency. They pay interest at specific intervals and pay the principal amount back to the bond's buyer at maturity.
69
Issued bond which is considered as hybrid bond is called
Discuss
Answer & Solution
Answer: Option D
Solution:
Issued bond which is considered as hybrid bond is called convertible bonds. A convertible bond is a fixed-income debt security that yields interest payments, but can be converted into a predetermined number of common stock or equity shares. The conversion from the bond to stock can be done at certain times during the bond's life and is usually at the discretion of the bondholder.
70
Suppliers and demanders of long term investment funds are work closely in
Discuss
Answer & Solution
Answer: Option A
Solution:
Suppliers and demanders of long term investment funds are work closely in bond markets. The bond market is the environment in which the issuance and trading of debt securities occur.