International Finance And Treasury - Study Mode

[#376] Swaps that are classified as long term contracts are
Correct Answer

(A) currency swaps

Explanation

Solution: Swaps that are classified as long term contracts are currency swaps. A currency swap is an agreement in which two parties exchange the principal amount of a loan and the interest in one currency for the principal and interest in another currency. At the inception of the swap, the equivalent principal amounts are exchanged at the spot rate.

[#377] Capital gains are 14% and periodic payments to stock holder are 11% then return on stock investment for stock holder is
Correct Answer

(B) 24.00%

[#378] If price of an option is $475 and time value of money is $375 then intrinsic value of an option is
Correct Answer

(B) $100

Explanation

Solution: Untrinsic value of an option = Price of an option - Time value of money = $475 - $375 = $100.

[#379] General Agreement on Tariffs and Trade (GATT)
Correct Answer

(C) removed some tariffs over a five- to ten-year period

Explanation

Solution: General Agreement on Tariffs and Trade (GATT) removed some tariffs over a five- to ten-year period. It was a free trade agreement between 23 countries that eliminated tariffs and increased international trade.

[#380] One of biggest borrowers in globe is
Correct Answer

(C) World Bank

Explanation

Solution: One of biggest borrowers in globe is World Bank. The World Bank Group (WBG) was established in 1944 to rebuild post-World War II Europe under the International Bank for Reconstruction and Development (IBRD). It is one of a variety of organizations seeking to shape the world economy.