International Finance And Treasury - Study Mode

[#116] SIBOR refers to
Correct Answer

(D) Singapore interbank offered rate

Explanation

Solution: SIBOR refers to Singapore interbank offered rate. It is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Singapore wholesale money market (or interbank market).

[#117] The market where long term securities (shares, bonds, etc. are bought and sold is called as
Correct Answer

(D) secondary market

Explanation

Solution: The market where long term securities (shares, bonds, etc. are bought and sold is called as secondary market. The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.

[#118] A bank located usually in another country that provides service for another bank is
Correct Answer

(C) Correspondent bank

Explanation

Solution: A bank located usually in another country that provides service for another bank is Correspondent bank. A correspondent bank is a bank that provides services on behalf of another, equal or unequal, financial institution. It can facilitate wire transfers, conduct business transactions, accept deposits, and gather documents on behalf of another financial institution.

[#119] The maximum amount that an Indian company can issue as ADR/GDR in a year is
Correct Answer

(D) No monetary ceiling

Explanation

Solution: The maximum amount that an Indian company can issue as ADR/GDR in a year is No monetary ceiling. The Monetary Ceiling is the maximum amount for which a Member can be held liable (ie. the cap) where a Court determines that the Member is compliant with all relevant obligations.

[#120] Issuers that are not involved directly in funds transferring are classified as
Correct Answer

(B) corporate issuers

Explanation

Solution: Issuers that are not involved directly in funds transferring are classified as corporate issuers. An issuer is a legal entity that develops, registers and sells securities to finance its operations. Issuers may be corporations, investment trusts, or domestic or foreign governments.