International Finance And Treasury - Study Mode
[#446] In New York Stock exchange, fully automated information and trading system which allows to execute orders for bonds is classified as
Correct Answer
(D) automated bond system
Explanation
Solution: In New York Stock exchange, fully automated information and trading system which allows to execute orders for bonds is classified as automated bond system. The Automated Bond System automatically records any and all movements in the bid and ask prices for inactive bonds until they are bought, sold, or canceled.
[#447] Negotiable deposit certificate are traded in
Correct Answer
(A) secondary markets
Explanation
Solution: Negotiable deposit certificate are traded in secondary markets. The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.
[#448] Type of bidding in which bids are met before allocation of competitive bidders is considered as
Correct Answer
(B) preferential basis
Explanation
Solution: Type of bidding in which bids are met before allocation of competitive bidders is considered as preferential basis. Bidding is an offer to set a price by an individual or business for a product or service or a demand that something be done.
[#449] Negotiable certificate of deposit with one year maturity pays interest
Correct Answer
(B) semi-annually
Explanation
Solution: Negotiable certificate of deposit with one year maturity pays interest semi-annually. A negotiable certificate of deposit (NCD) is a certificate of deposit with a minimum face value of $100,000. They are guaranteed by the bank and can usually be sold in a highly liquid secondary market, but they cannot be cashed in before maturity.
[#450] Obligations that are issued by US governments and are obligated for short term are classified as
Correct Answer
(B) treasury bills
Explanation
Solution: Obligations that are issued by US governments and are obligated for short term are classified as treasury bills. Treasury Bills, also known as T-bills are the short-term money market instrument, issued by the central bank on behalf of the government to curb temporary liquidity shortfalls. These do not yield any interest, but issued at a discount, at its redemption price, and repaid at par when it gets matured.