International Finance And Treasury - Study Mode

[#586] Financial securities issued by local and state governments are classified as
Correct Answer

(A) municipal bonds

Explanation

Solution: Financial securities issued by local and state governments are classified as municipal bonds. Municipal bonds are loans investors make to local governments. They are issued by cities, states, counties, or other local governments. For that reason, the interest they pay on the bonds is tax-free.

[#587] Numerous European nations accepted Euro as their currency in
Correct Answer

(C) 1999

Explanation

Solution: Numerous European nations accepted Euro as their currency in 1999. On January 1, 1999, one of the largest steps toward European unification took place with the introduction of the euro as the official currency in 12 countries (Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain).

[#588] Financial account was earlier called as
Correct Answer

(A) capital account

Explanation

Solution: Financial account was earlier called as capital account. The capital account shows the net worth of a business at a specific point in time. It is also known as owner's equity for a sole proprietorship or shareholders' equity for a corporation, and it is reported in the bottom section of the balance sheet.

[#589] Factor proceeds are part of which section of balance of payments
Correct Answer

(B) current account

Explanation

Solution: Factor proceeds are part of which section of balance of payments current account. The current account records a nation's transactions with the rest of the world specifically its net trade in goods and services, its net earnings on cross-border investments, and its net transfer payments over a defined period of time, such as a year or a quarter.

[#590] Structural Adjustment Lending boosts country's
Correct Answer

(B) long-term economic growth

Explanation

Solution: Structural Adjustment Lending boosts country's long-term economic growth. Economic growth is the long-run trend of an increase in output over time, not just a temporary fluctuation in output or using previously underutilized resources.