International Finance And Treasury - Study Mode

[#556] The activity of making profit through buying a currency cheap in one market and selling it dear in the other market at a particular point of time is known as
Correct Answer

(B) Currency arbitrage

[#557] Which of the following organsations play an active role to prevent the contagion situation of crisis, such as the Greek Sovereign debt crisis?
Correct Answer

(A) IMF

[#558] Bonds that are not pledged against revenue stream or specific assets are classified as
Correct Answer

(A) general obligation bonds

Explanation

Solution: Bonds that are not pledged against revenue stream or specific assets are 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. General obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects.

[#559] Markets in which bonds are traded and issued are classified as
Correct Answer

(C) bond markets

Explanation

Solution: Markets in which bonds are traded and issued are classified as bond markets. The bond market—often called the debt market or credit market is a financial marketplace where investors can trade in government-issued and corporate-issued debt securities.

[#560] Current market price of common stock is $18 and conversion rate received on conversion is $410 to calculate
Correct Answer

(D) $7,380

Explanation

Solution: Conversion Price = Conversion rate received on conversion × Current market price = $410 × $18 = $7,380.