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-9 section-4

Each section contains 100 MCQs on International Finance and Treasury .
81
As compared to public issues, interest premiums on privately placed issues overtime have
Discuss
Answer & Solution
Answer: Option C
Solution:
As compared to public issues, interest premiums on privately placed issues overtime have decreased.
82
Price of treasury notes and treasury bonds without including accrued interest is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Price of treasury notes and treasury bonds without including accrued interest is classified as clean price. The clean price is the price of a coupon bond not including accrued interest payments.
83
Type of bonds which is fully backed by credit and faith of issuer is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Type of bonds which is fully backed by credit and faith of issuer is classified as general obligation bonds. A general obligation bond (GO) is a municipal bond backed by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project.
84
Single bid auction of TIPS securities means that all bidders
Discuss
Answer & Solution
Answer: Option B
Solution:
Single bid auction of TIPS securities means that all bidders pays same price. In the single-price format - all bids accepted by the Treasury are awarded at the same interest rate which is the highest yield of accepted competitive bids.
85
Call premium is added to face value of bond to calculate
Discuss
Answer & Solution
Answer: Option A
Solution:
Call premium is added to face value of bond to calculate call price of bond. The call price is the price a bond issuer or preferred stock issuer must pay investors if it wants to buy back, or call, all or part of an issue before the maturity date.
86
Investors who want cash flows in near terms shows preference for
Discuss
Answer & Solution
Answer: Option C
Solution:
Investors who want cash flows in near terms shows preference for interest portion of STRIPS. Interest only (IO) strips are a security where the holder receives the non-principal portion of the monthly payments on the underlying mortgages, Treasury bonds or other bonds.
87
Liquidity status of certificate of deposit which is more negotiable is considered as
Discuss
Answer & Solution
Answer: Option C
Solution:
Liquidity status of certificate of deposit which is more negotiable is considered as more liquid. Liquid certificates of deposit are a type of certificate of deposit (CD) that allow investors to make withdrawals without incurring a penalty. The funds in the account are accessible throughout the lifetime of the product where most traditional CD's apply a hefty fee for withdrawing early, reducing the interest earned to that point.
88
Commercial paper issued with low interest rate thus commercial paper are categorized as
Discuss
Answer & Solution
Answer: Option D
Solution:
Commercial paper issued with low interest rate thus commercial paper are categorized as better credit rating. Higher scores represent better credit decisions and can make creditors more confident that you will repay your future debts as agreed.
89
Maximum maturity days of holding commercial paper are
Discuss
Answer & Solution
Answer: Option B
Solution:
Maximum maturity days of holding commercial paper are 270 days. Commercial paper, in the global financial market, is an unsecured promissory note with a fixed maturity of not more than 270 days.
90
In borrowing and lending of federal funds, federal funds rate is result of function between
Discuss
Answer & Solution
Answer: Option C
Solution:
In borrowing and lending of federal funds, federal funds rate is result of function between supply and demand. The federal funds rate refers to the interest rate that banks charge other banks for lending them money from their reserve balances on an overnight basis.