International Finance And Treasury - Study Mode

[#576] Risk arises when technology system may got malfunction is classified as
Correct Answer

(C) operational risk

Explanation

Solution: Risk arises when technology system may got malfunction is classified as operational risk. Operational risk is the prospect of loss resulting from inadequate or failed procedures, systems or policies. Employee errors. Systems failures. Fraud or other criminal activity. Any event that disrupts business processes.

[#577] Bonds that are considered investment rating bonds are given rating of
Correct Answer

(A) triple B rating bonds

Explanation

Solution: Bonds that are considered investment rating bonds are given rating of triple B rating bonds.

[#578] Considering yields of bonds, secured bonds as compared to unsecured bonds have
Correct Answer

(A) higher yields

Explanation

Solution: Considering yields of bonds, secured bonds as compared to unsecured bonds have higher yields. Unsecured bonds pay a higher rate of interest than the secured bonds.

[#579] IN negotiated sale, services provided by investment banks are
Correct Answer

(D) both a and c

Explanation

Solution: In negotiated sale, services provided by investment banks are origination services and advising services. A negotiated sale is when the issuer and an underwriter negotiate the terms of municipal bonds in lieu of groups bidding to establish the terms.

[#580] Auction of TIPS security is classified as
Correct Answer

(D) One bid auction

Explanation

Solution: Auction of TIPS security is classified as one bid auction. Bidding is competitively offering a price that the bidder or the person offering a bid is willing to pay for a commodity this commodity can be anything, cars, bikes, properties, etc. The price offered is called a bid, the person offering the price is called the bidder and the entire phenomenon is known as bidding.