International Finance And Treasury - Study Mode
[#256] To improve attractiveness for investors, bonds are partially backed by
Correct Answer
(A) US.T-Bonds
Explanation
Solution: To improve attractiveness for investors, bonds are partially backed by US.T-Bonds. United States Treasury securities are government debt instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation. Treasury securities are often referred to simply as Treasurys.
[#257] Financial securities which are issued to finance government expenditures and national debt are classified as
Correct Answer
(A) treasury notes and bonds
Explanation
Solution: Financial securities which are issued to finance government expenditures and national debt are classified as treasury notes and bonds. Treasury bills, notes, and bonds are fixed-income securities issued by the U.S. government. They are sold at auction and on the secondary market.
[#258] As compared to general obligation bonds, revenue bonds are considered as
Correct Answer
(D) more risky
Explanation
Solution: As compared to general obligation bonds, revenue bonds are considered as more risky. Revenue bonds are generally of higher risk than general obligation bonds, and as a result, they typically offer higher yields.
[#259] Marginal income tax rate is 35% and before tax rate of return is 12.5% then after tax rate of return is
Correct Answer
(C) 8.13%
[#260] In best efforts offering, price offered by investment banks is originally set by
Correct Answer
(A) municipality
Explanation
Solution: In best efforts offering, price offered by investment banks is originally set by municipality. Best efforts is a contractual term in which an underwriter promises to make their best effort to sell as much of a securities offering (e.g., IPO) as possible. Best-effort agreements are used mainly for securities in a less-than-ideal market condition or with higher risk, such as an unseasoned offering.