International Finance And Treasury - Study Mode

[#141] In US treasury, inflation indexed bond is classified as
Correct Answer

(A) treasury inflation protection securities

Explanation

Solution: In US treasury, inflation indexed bond is classified as treasury inflation protection securities. Treasury Inflation-Protected Securities (TIPS) are a form of U.S. Treasury bond designed to help investors protect against inflation. These bonds are indexed to inflation, have U.S. government backing, and pay investors a fixed interest rate as the bond's par value adjusts with the inflation rate.

[#142] Non-competitive bids of securities are submitted through
Correct Answer

(C) Federal Reserve banks

Explanation

Solution: Non-competitive bids of securities are submitted through Federal Reserve banks. The Federal Reserve System is the central bank of the United States and arguably the most powerful financial institution in the world. The Federal Reserve System was founded by the U.S. Congress in 1913 to provide the nation with a safe, flexible, and stable monetary and financial system.

[#143] Type of markets which trades underwritten bonds syndicated by some other countries is classified as
Correct Answer

(A) international markets

Explanation

Solution: Type of markets which trades underwritten bonds syndicated by some other countries is classified as international markets. An international market is defined geographically as a market outside the international borders of a company's country of citizenship. A company, to the extent that it is a legally distinct entity from its owners like a corporation, is usually a citizen of the country where it is organized.

[#144] Year in which Eurobonds are issued for first time in financial markets is
Correct Answer

(A) 1963

Explanation

Solution: Year in which Eurobonds are issued for first time in financial markets is 1963. On July 1, 1963, Autostrade had issued the world's first eurobond. Despite its name, the bond was dollar-denominated and pitched at US currency investors operating across national borders.

[#145] When bonds are called and redeem, they must be ceased to
Correct Answer

(A) earn interest

Explanation

Solution: When bonds are called and redeem, they must be ceased to earn interest. Investors who purchase a company's bonds receive interest on the bond and are promised a return on their investment at a future date. The future date is when a bond matures. Usually, the bond issuer repays the bond principal to the investor on the maturity date.