International Finance And Treasury - Study Mode

[#131] Banks that deals with reciprocal agreements and accounts are considered as
Correct Answer

(A) correspondent banks

Explanation

Solution: Banks that deals with reciprocal agreements and accounts are considered as correspondent banks. Correspondent banks are financial institutions that act as an agent on behalf of other financial institutions, usually foreign banks.

[#132] Treasury bills have high liquidity because of
Correct Answer

(A) extensive secondary markets

Explanation

Solution: Treasury bills have high liquidity because of extensive secondary markets. A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less.

[#133] Treasury bills are issued to raise significant amount of funds by
Correct Answer

(A) US treasury

Explanation

Solution: Treasury bills are issued to raise significant amount of funds by US treasury. A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less.

[#134] Rates of certificate of deposits are mostly negotiated between
Correct Answer

(A) bank and COD buyer

Explanation

Solution: Rates of certificate of deposits are mostly negotiated between bank and COD buyer. A certificate of deposit (CD) is a product offered by banks and credit unions that offers an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.

[#135] Repurchase price is $250, selling price is $220 and number of days till maturity are 3 then yield of repurchase agreement is 2500
Correct Answer

(B) 16.36%