International Finance And Treasury - Study Mode

[#691] In syndicate, leading bank which negotiates transaction to issuing bank on behalf of syndicate is called
Correct Answer

(A) originating house

Explanation

Solution: In syndicate, leading bank which negotiates transaction to issuing bank on behalf of syndicate is called originating house. Originating house is an investment brokerage firm or several investment bankers joined together to manage the underwriting and sale of a new issue of stock to the general public.

[#692] Financial instruments traded in money markets are then traded in
Correct Answer

(B) capital markets

Explanation

Solution: Financial instruments traded in money markets are then traded in capital markets. Financial instruments are assets that can be traded, or they can also be seen as packages of capital that may be traded. Most types of financial instruments provide efficient flow and transfer of capital all throughout the world's investors.

[#693] Principal issuer of commercial papers are commercial banks and major investors of principal investors includes
Correct Answer

(D) all of above

Explanation

Solution: Principal issuer of commercial papers are commercial banks and major investors of principal investors includes brokers and dealers, corporations and other financial institutions.

[#694] Government issues treasury bills at discounted rate from
Correct Answer

(A) face value

Explanation

Solution: Government issues treasury bills at discounted rate from face value. U.S. Treasury bills (T-bills) are typically sold at a discount from their par value. The level of discount is determined during Treasury auctions. Unlike other U.S. Treasury securities such as Treasury notes (T-notes) and Treasury bonds (T-bonds), T-bills do not pay periodic interest at six-month intervals.

[#695] Transactions in market of treasury bills is mostly transacted over telephone and hence classified as
Correct Answer

(A) decentralized

Explanation

Solution: Transactions in market of treasury bills is mostly transacted over telephone and hence classified as decentralized. It is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.