International Finance And Treasury - Study Mode

[#136] Price which is paid by bidders and is accepted by all other bidders is classified as
Correct Answer

(B) lowest price

Explanation

Solution: Price which is paid by bidders and is accepted by all other bidders is classified as lowest price. A bidder is someone who offers to pay a certain amount of money for something that is being sold.

[#137] International bankers
Correct Answer

(C) letter of credits

Explanation

Solution: International bankers letter of credits. A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods.

[#138] In Eurodollar market, decrease in demand of Euro dollars results in
Correct Answer

(C) decrease in federal funds rate

Explanation

Solution: In Eurodollar market, decrease in demand of Euro dollars results in decrease in federal funds rate. The federal funds rate refers to the interest rate that banks charge other banks for lending them money from their reserve balances on an overnight basis.

[#139] Types of notes and bonds issued by Treasury are
Correct Answer

(D) both a and b

Explanation

Solution: Types of notes and bonds issued by Treasury are fixed principal and inflation indexed.

[#140] Number of covenants related to issued bonds are included in
Correct Answer

(B) bond indenture

Explanation

Solution: Number of covenants related to issued bonds are included in bond indenture. A bond indenture is a legal document or contract between the bond issuer and the bondholder that records the obligations of the bond issuer and benefits owed to the bondholder.