International Finance And Treasury - Study Mode

[#606] Type of sale in which investment bank got rights to underwrite, distribute and originate new bonds is classified as
Correct Answer

(C) negotiated sale

Explanation

Solution: Type of sale in which investment bank got rights to underwrite, distribute and originate new bonds is classified as negotiated sale. 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.

[#607] Which of the following is not an example of an international trade draft?
Correct Answer

(C) Both the first and second answers are correct

Explanation

Solution: Time draft and Sight draft is not an example of an international trade draft. A sight draft is a type of bill of exchange, in which the exporter holds the title to the transported goods until the importer receives and pays for them. Sight drafts are used with both air shipments and ocean shipments for financing transactions of goods in international trade.

[#608] The first Indian company raised the fund by issuing Bond in US dollar in United States
Correct Answer

(C) Reliance

Explanation

Solution: Reliance is the first Indian company raised the fund by issuing Bond in US dollar in United States. It is first corporation in Asia to issue 50- and 100-year bonds in the United States.

[#609] Purchasing-power parity (PPP) refers to__________
Correct Answer

(A) the concept that the same goods should sell for the same price across countries after exchange rates are taken into account

Explanation

Solution: Purchasing-power parity (PPP) refers to the concept that the same goods should sell for the same price across countries after exchange rates are taken into account. Purchasing power parity (PPP) is an economic theory that compares different countries' currencies through a "basket of goods" approach.

[#610] A group of European countries have formed a union and created a common currency known as __________
Correct Answer

(D) the Euro

Explanation

Solution: A group of European countries have formed a union and created a common currency known as the Euro. The European Union (EU) is a group of 28 countries that operates as a cohesive economic and political block. Nineteen of the countries use the euro as their official currency.