International Finance and Treasury MCQ questions

International Finance and Treasury MCQ questions

Question 1
In financial markets, STRIPS are also classified as
A
treasury KIBOR notes
B
treasury KIBOR bonds
C
treasury zero coupon bonds
D
treasury LIBOR bonds






Question 2
In Eurodollar market, decrease in demand of Euro dollars results in
A
increase in KIBOR
B
decrease in KIBOR
C
decrease in federal funds rate
D
increase in federal funds rate
Question 3
Several maturities dates are involved in issued bonds if company earnings are classified as
A
parallel term income
B
pledged
C
volatile
D
non-volatile






Question 4
Financial account was earlier called as
A
capital account
B
current account
C
factor income
D
liability account
Question 5
For an investment, weighted average time to maturity is considered as
A
premium time
B
standard time
C
mean time
D
duration






Question 6
A country has a negative balance of trade it means the balance of payments on current account
A
Should also be negative
B
Should be positive
C
May be positive or negative
D
Should be same as balance of trade
Question 7
In treasury bills auction, treasury bills are sold at
A
premium basis
B
discount basis
C
competitive basis
D
federal basis






Question 8
Difference between face value of bond and call price of bond is considered as
A
call premium
B
call provision
C
discount premium
D
discount provision
Question 9
Purchasing-power parity (PPP) refers to.....
A
the concept that the same goods should sell for the same price across countries after exchange rates are taken into account
B
the concept that interest rates across countries will eventually be the same
C
the orderly relationship between spot and forward currency exchange rates and the rates of interest between countries
D
the natural offsetting relationship provided by costs and revenues in similar market environments






Question 10
In commercial banks, subordinate debentures and subordinate notes are considered as
A
stated rates
B
banks debentures
C
banks liabilities
D
banks deposits
There are 10 questions to complete.

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