International Finance And Treasury - Study Mode

[#786] Expected worth is the
Correct Answer

(D) weighted average of all possible outcomes

Explanation

Solution: Expected worth is the weighted average of all possible outcomes. The expected value (EV) is an anticipated value for an investment at some point in the future. In statistics and probability analysis, the expected value is calculated by multiplying each of the possible outcomes by the likelihood each outcome will occur and then summing all of those values.

[#787] Liquidity risk is:
Correct Answer

(C) is risk associated with secondary market transactions

Explanation

Solution: Liquidity risk is risk associated with secondary market transactions. Liquidity is the ability of a firm, company, or even an individual to pay its debts without suffering catastrophic losses. Conversely, liquidity risk stems from the lack of marketability of an investment that can't be bought or sold quickly enough to prevent or minimize a loss.

[#788] Bondholders usually accept interest payments each
Correct Answer

(B) six months

Explanation

Solution: Bondholders usually accept interest payments each six months. A bondholder is an investor or owner of debt securities that are typically issued by corporations and governments. Bondholders are essentially lending money to the bond issuers. Bondholders receive their principal back when the bonds mature and periodic interest payments for most bonds.

[#789] When the two countries are having the gold standard, their currency units are either made of gold specified purity and weight or freely convertible into gold of given purity at fixed rate, this theory known as
Correct Answer

(B) Mint parity theory

[#790] Which of the following transactions take place in the foreign exchange market?
Correct Answer

(D) All of the above