International Finance And Treasury - Study Mode

[#701] Banks, mutual funds and insurance companies are considered as
Correct Answer

(A) major suppliers

Explanation

Solution: Banks, mutual funds and insurance companies are considered as major suppliers.

[#702] Conversion values is $9500 and conversion rate received on stock conversion is 460 then current market price of stock is
Correct Answer

(D) $20.65

Explanation

Solution: Current market price of stock = Conversion values ÷ Conversion rate received on stock conversion = $9500 ÷ 460 = $20.65.

[#703] Considering coupon rate, Brady bonds pays
Correct Answer

(B) lower than promised

Explanation

Solution: Considering coupon rate, Brady bonds pays lower than promised. Brady bonds are bonds that are issued by the governments of developing countries. Brady bonds are some of the most liquid emerging market securities.

[#704] Bonds issued for longer term and must be sold in country whom currency is not used in denomination of bonds are classified as
Correct Answer

(D) Eurobonds

Explanation

Solution: Bonds issued for longer term and must be sold in country whom currency is not used in denomination of bonds are classified as Eurobonds. A eurobond is denominated in a currency other than the home currency of the country or market in which it is issued. These bonds are frequently grouped together by the currency in which they are denominated, such as eurodollar or euroyen bonds.

[#705] Foreign bonds, sovereign bonds and Eurobonds are classified as types of
Correct Answer

(C) international markets

Explanation

Solution: Foreign bonds, sovereign bonds and Eurobonds are classified as types of international markets. An international market is defined geographically as a market outside the international borders of a company's country of citizenship. A company, to the extent that it is a legally distinct entity from its owners like a corporation, is usually a citizen of the country where it is organized.