International Finance And Treasury - Study Mode

[#496] More instability in currency is called as
Correct Answer

(C) currency risk
(G) currency risk

Explanation

Solution: More instability in currency is called as currency risk. Currency Risk, sometimes referred to as exchange rate risk, is the possibility that currency depreciation will negatively affect the value of one's assets, investments, and their related interest and dividend payment streams, especially those securities denominated in foreign currency.

[#497] Foreign bonds issued in Japan are known
Correct Answer

(D) samurai bonds

Explanation

Solution: Foreign bonds issued in Japan are known as samurai bonds. A samurai bond is a yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations. Other types of yen-denominated bonds are Euroyens issued in countries other than Japan, typically in London.

[#498] Largest number of buyers and sellers, greater the
Correct Answer

(A) liquidity

Explanation

Solution: Largest number of buyers and sellers, greater the liquidity. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words: the ease of converting it to cash.

[#499] Exchange rate entail delivery of trade currency within two business days know as
Correct Answer

(C) spot rate

Explanation

Solution: Exchange rate entail delivery of trade currency within two business days know as spot rate. The spot rate is the price quoted for immediate settlement on a commodity, a security or a currency. The spot rate, also referred to as the "spot price," is the current market value of an asset at the moment of the quote.

[#500] Simplicity with which bondholders and shareholders can change their investments into cash is known
Correct Answer

(D) liquidity
(H) liquidity

Explanation

Solution: Simplicity with which bondholders and shareholders can change their investments into cash is known as liquidity. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words: the ease of converting it to cash.