International Finance And Treasury - Study Mode

[#326] Match the following. List-I List-II a. Euro currency 1. Euro lent in USA b. Euro bond 2. Securities offered in other currency c. Euro 3. Currency of EU
Correct Answer

(B) a-1, b-2, c-3

[#327] Exchange rate entail delivery of trade currency within two business days known as
Correct Answer

(C) current/spot rate

[#328] Match the following. List-I List-II a. Increase in inflation 1. Appreciation of home currency b. Increase in interest rate 2. Reduction in home currency c. lncrease in exports 3. Reduction in foreign currency
Correct Answer

(D) a-2, b-1, c-3

[#329] Under foreign exchange risk measurement, economic risk emerges out of which of the following? 1. Riskiness of company's foreign exchange positions resulting from its business activities. 2. The holding period or length of time over which the foreign exchange position is planned to be held. 3. A change in the present value of the future after tax cash flows due to changes in exchange rates. 4. The unit of currency to be used for the denomination of the value of currency.
Correct Answer

(C) Only 3

[#330] Type of market in which securities with less than one year maturity are traded is classified as
Correct Answer

(A) money market

Explanation

Solution: Type of market in which securities with less than one year maturity are traded is classified as money market. The money market is the trade in short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.