International Finance And Treasury - Study Mode

[#236] Not a profit maximizing business is
Correct Answer

(B) International bank for Reconstruction and Development

Explanation

Solution: International bank for Reconstruction and Development is not a profit maximizing business. The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to middle-income developing countries. The IBRD is the first of five member institutions that compose the World Bank Group, and is headquartered in Washington, D.C. in the United States.

[#237] Gifts and Relief are
Correct Answer

(D) Transfer payment

Explanation

Solution: Gifts and Relief are Transfer payment. A transfer payment is money paid to an individual who has not performed any service or rendered any goods for it. Transfer payments are ways for local, state, and federal governments to redistribute money to those in need. Transfer payments are considered income and are potentially taxable.

[#238] Nations that have major economic expansion attract
Correct Answer

(B) Direct Foreign Investment

Explanation

Solution: Nations that have major economic expansion attract Direct Foreign Investment. Foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.

[#239] The term Euro currency Market refers to
Correct Answer

(C) The market where the borrowing and lending of currencies take place outside the country of issue

Explanation

Solution: The term Euro currency Market refers to the market where the borrowing and lending of currencies take place outside the country of issue. The eurocurrency market is the money market in which currency held in banks outside of the country where it is legal tender is borrowed and lent by banks.

[#240] Bond issued simultaneously in several global financial center is
Correct Answer

(C) Global Bond

Explanation

Solution: Bond issued simultaneously in several global financial center is Global Bond. A global bond is a type of bond that can be traded in a domestic or European market. It is a bond issued and traded outside the country where the currency of the bond is denominated. This type of bond is issued by a non-European company but sells in a European country or any other foreign market.