International Finance And Treasury - Study Mode
[#216] Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as
Correct Answer
(D) discount window
Explanation
Solution: Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as discount window. The discount window is a central bank lending facility meant to help commercial banks manage short-term liquidity needs.
[#217] Type of Eurodollars deposits denominated in banks outside United States is classified as
Correct Answer
(B) euro dollar certificate of deposit
Explanation
Solution: Type of Eurodollars deposits denominated in banks outside United States is classified as euro dollar certificate of deposit. A Eurodollar certificate of deposit (Eurodollar CD) is a negotiable dollar-denominated time deposit issued by a U.S. bank located outside the United States or by a foreign bank located abroad.
[#218] Repurchase price is $250, selling price is $150 and number of days till maturity are 5 then yield of repurchase agreement is 2500
Correct Answer
(C) 28.80%
[#219] Drafts which are backed up by banks and are payable to seller of products or services are classified as
Correct Answer
(A) banker acceptance
Explanation
Solution: Drafts which are backed up by banks and are payable to seller of products or services are classified as banker acceptance. A banker's acceptance requires the bank to pay the holder a set amount of money on a set date.
[#220] Deposit issued by bank, usually negotiable and have specific maturity date and interest rate is classified as
Correct Answer
(C) negotiable certificate
Explanation
Solution: Deposit issued by bank, usually negotiable and have specific maturity date and interest rate is classified as negotiable certificate. A negotiable certificate of deposit, or CD, is a marketable receipt for funds deposited in a bank for a specified period at a specified rate of interest.