International Finance And Treasury - Study Mode
[#621] Which of the following statement is correct? 1. The interest rate in international credit market is depended on the LIBOR rate. 2. LIBOR varies in countries due to difference in the supply demand of a particular currency. 3. LIBOR is a fixed interest rate at which banks give loans to each other.
Correct Answer
(C) Both 1 and 2
[#622] Bids of bidder which tells that how much treasury bills bidder wants to buy is classified as
Correct Answer
(C) non-competitive bids
Explanation
Solution: Bids of bidder which tells that how much treasury bills bidder wants to buy is classified as non-competitive bids. Non-competitive bidding means the bidder would be able to participate in the auctions of dated government securities without having to quote the yield or price in the bid.
[#623] Financial instrument such as commercial paper can be sold
Correct Answer
(B) directly
Explanation
Solution: Financial instrument such as commercial paper can be sold directly. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities. Maturities on commercial paper rarely range longer than 270 days.
[#624] Process of issuing treasury bills is classified as
Correct Answer
(C) treasury bills auction
Explanation
Solution: Process of issuing treasury bills is classified as treasury bills auction. Bill auction is a public auction for Treasury bills that is held weekly by the U.S. Treasury. As of 2019, there are 24 authorized primary dealers that are required to bid directly upon each issue. This is the manner in which all U.S. Treasury bills are issued.
[#625] For a particular security transaction, agreement is classified as 'reverse repo' with point of view of
Correct Answer
(B) security buyer
Explanation
Solution: For a particular security transaction, agreement is classified as 'reverse repo' with point of view of security buyer. Security Buyer is a professional security media platform that gathers the industry information and updates, and provides unique insights of the evolving security industry. We are benefiting from its strong marketing power, as well as the well-connected professional services. Security Buyers is one of the most effective media platforms in the marketplace.