International Finance And Treasury - Study Mode

[#176] Certificate of deposits which are usually negotiable are issued by
Correct Answer

(A) banks

Explanation

Solution: Certificate of deposits which are usually negotiable are issued by banks. 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.

[#177] Investors held commercial papers generally from
Correct Answer

(A) issuance to maturity

Explanation

Solution: Investors held commercial papers generally from issuance to maturity. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities. Maturities on commercial paper rarely range longer than 270 days.

[#178] The primary component of the current account is the.
Correct Answer

(A) balance of trade

Explanation

Solution: The primary component of the current account is the balance of trade. The balance of trade is the difference between the value of a country's imports and exports for a given period. The balance of trade is the largest component of a country's balance of payments. Economists use the BOT to measure the relative strength of a country's economy.

[#179] ______________ is (are income received by investors on foreign investments in financial assets securities
Correct Answer

(D) Factor income

Explanation

Solution: Factor income are income received by investors on foreign investments in financial assets securities. Factor income is income received from the factors of production: the inputs used in the production of goods or services in order to make an economic profit. Factor income on the use of land is called rent, income generated from labor is called wages, and income generated from capital is called profit.

[#180] LIBOR refers
Correct Answer

(A) London Inter Bank Offered Rate

Explanation

Solution: LIBOR refers to London Inter Bank Offered Rate. The London Interbank Offered Rate (LIBOR) is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.