International Finance And Treasury - Study Mode
[#571] Money market where debt and stocks are traded and maturity period is more than a year is classified as
Correct Answer
(B) capital markets
Explanation
Solution: Money market where debt and stocks are traded and maturity period is more than a year is classified as capital markets. Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who are in need of capital. Capital markets consist of the primary market, where new securities are issued and sold, and the secondary market, where already-issued securities are traded between investors.
[#572] Example of derivative securities includes
Correct Answer
(D) all of above
Explanation
Solution: Example of derivative securities includes swap contract, option contract and futures contract. A derivative is an instrument whose value is derived from the value of one or more underlying, which can be commodities, precious metals, currency, bonds, stocks, stocks indices, etc.
[#573] In foreign financial markets, growth is represented by factors such as
Correct Answer
(D) all of above
Explanation
Solution: In foreign financial markets, growth is represented by factors such as savings in foreign countries, investment opportunities and accessible information.
[#574] Authority which intervenes directly or indirectly in foreign exchange markets by altering interest rates is considered as
Correct Answer
(C) central government
Explanation
Solution: Authority which intervenes directly or indirectly in foreign exchange markets by altering interest rates is considered as central government. The central government oversees finance, commerce, national defense, foreign affairs, and all laws 'necessary and proper'.
[#575] Services provided by financial institutions as providing financing to any specific sector of economy such as real estate business are classified as
Correct Answer
(D) credit allocation
Explanation
Solution: Services provided by financial institutions as providing financing to any specific sector of economy such as real estate business are classified as credit allocation. The financing (credit) which a bank or financial institution (FI) provides for particular sectors of the economy, such as small businesses, farming, services, residential real estate, etc.