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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-8 section-3

Each section contains 100 MCQs on International Finance and Treasury .
71
Type of rating to which all credit rating agencies does not consider is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Type of rating to which all credit rating agencies does not consider is classified as split rating. A condition that occurs when the same bond is rated differently by the rating agencies.
72
Promised payments on Eurobonds will be paid in
Discuss
Answer & Solution
Answer: Option A
Solution:
Promised payments on Eurobonds will be paid in currency of denomination. Eurobonds are usually offered at fixed interest rates, offering a clear fixed-payment debt structure for the issuer even in the long term.
73
Value of conversion option to bond holder is $550 and rate of return on non-convertible bond is $270 then rate of return on convertible bond is
Discuss
Answer & Solution
Answer: Option C
Solution:
Rate of return on convertible bond = Value of conversion option to bond holder - Rate of return on non-convertible bond
= $550 - $270 = $280.
74
Eurobonds are issued by financial firms to
Discuss
Answer & Solution
Answer: Option A
Solution:
Eurobonds are issued by financial firms to avoid taxes. A eurobond is denominated in a currency other than the home currency of the country or market in which it is issued. These bonds are frequently grouped together by the currency in which they are denominated, such as eurodollar or euroyen bonds.
75
Price accepted in single bid auction system is one which is
Discuss
Answer & Solution
Answer: Option A
Solution:
Price accepted in single bid auction system is one which is most lowest.
76
Names of foreign bonds are used to denote
Discuss
Answer & Solution
Answer: Option B
Solution:
Names of foreign bonds are used to denote country of origin. A foreign bond is a bond that is issued in a domestic market by a foreign entity, in the domestic market's currency.
77
Type of bond in which coupon payment is mailed registered bondholders and owner is recorded by issuing company is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Type of bond in which coupon payment is mailed registered bondholders and owner is recorded by issuing company is classified as registered bonds. A registered bond is a bond which has its owner registered with the bond's issuer. The owner's name and contact information is recorded and kept on file with the company, allowing it to pay the bond's coupon payment to the appropriate person.
78
If maturity date of bond is closer than premium of bond will be
Discuss
Answer & Solution
Answer: Option A
Solution:
If maturity date of bond is closer than premium of bond will be relatively lower. The maturity date is the date on which an investor can expect to have his or her principal repaid. It is possible to buy and sell a bond in the open market prior to its maturity date.
79
Foreign bonds issued in Japan financial institutions are classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Foreign bonds issued in Japan financial institutions are classified as samurai bonds. A samurai bond is a yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
80
In financial markets, bond indenture results in
Discuss
Answer & Solution
Answer: Option D
Solution:
In financial markets, bond indenture results in lower risk. A bond indenture is the contract associated with a bond. The terms of a bond indenture include a description of the bond features, restrictions placed on the issuer, and the actions that will be triggered if the issuer fails to make timely payments.