International Finance And Treasury - Study Mode

[#126] Type of markets in which derivative securities are traded is classified as
Correct Answer

(A) derivative security markets

Explanation

Solution: Type of markets in which derivative securities are traded is classified as derivative security markets. Derivative securities (also called derivatives) are financial contracts whose values are derived from the values of underlying financial assets (such as securities).

[#127] Institutions classified as depository ones and have loans as their major assets are classified as
Correct Answer

(A) commercial banks

Explanation

Solution: Institutions classified as depository ones and have loans as their major assets are classified as commercial banks. A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A commercial bank is where most people do their banking, as opposed to an investment bank.

[#128] Major assets of commercial banks are
Correct Answer

(D) both a and c

Explanation

Solution: Major assets of commercial banks are commercial loans and deposits.

[#129] Exchange rate of foreign currency fluctuate day to day because of
Correct Answer

(A) demand and supply

Explanation

Solution: Exchange rate of foreign currency fluctuate day to day because of demand and supply. An exchange rate is the value of one nation's currency versus the currency of another nation or economic zone.

[#130] Markets which reallocate liquid funds in relatively fixed amounts are classified as
Correct Answer

(C) secondary markets

Explanation

Solution: Markets which reallocate liquid funds in relatively fixed amounts are classified as secondary markets. 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.