International Finance And Treasury - Study Mode

[#331] Type of structured market through which funds flow with help of financial instruments such as bonds and stocks is classified as
Correct Answer

(A) financial markets

Explanation

Solution: Type of structured market through which funds flow with help of financial instruments such as bonds and stocks is classified as financial markets. A financial market is a broad term describing any marketplace where trading of securities including equities, bonds, currencies, and derivatives occur.

[#332] Type of risk in which payments are interrupted by intervention of foreign governments is considered as
Correct Answer

(D) country risk

Explanation

Solution: Type of risk in which payments are interrupted by intervention of foreign governments is considered as country risk. Country risk is the risk that a foreign government will default on its bonds or other financial commitments. Country risk also refers to the broader notion of the degree to which political and economic unrest affect the securities of issuers doing business in a particular country.

[#333] Risk of financial institutions which states mismatching assets maturities and liabilities maturities is classified as
Correct Answer

(B) maturity intermediation

Explanation

Solution: Risk of financial institutions which states mismatching assets maturities and liabilities maturities is classified as maturity intermediation. Maturity intermediation is an investment term that describes a bank's long-term lending on funds borrowed for a short-term investment.

[#334] Legal document required by Securities Exchange Commission stating associated risks and detailed description of issues is classified as
Correct Answer

(A) prospectus

Explanation

Solution: Legal document required by Securities Exchange Commission stating associated risks and detailed description of issues is classified as prospectus. A prospectus is a formal document that is required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering for sale to the public. A prospectus is filed for stock, bond, and mutual fund offerings.

[#335] Process of selling and buying of stocks and bonds is classified as
Correct Answer

(C) e-trade

Explanation

Solution: Process of selling and buying of stocks and bonds is classified as e-trade. Electronic trading company designed to provide investors with a service to actively manage their portfolios and execute trades at their discretion. Trades are executed with a computer or smartphone device and are made quickly.