Denomination intermediation refers to: a. The efficiency with which depository institutions provide payment services such as cheque clearing. b. Converting foreign denominated currency into local currency. c. FIs allowing small investors to overcome constraints to buying assets imposed by large minimum denomination size.
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- Which below is not one of the factors determining the mix of banks loan? * a. Market size b. Regulations c. Characteristics of currency d. Characteristics of Market AreaExamples of off-balance-sheet activities include foreign exchange market transactions. Oborrowing from other banks. O extending loans to depositors. discount window operations.Write Notes on the Following A: Off Balance Sheet Assets and Liabilities B: Interest Rate Risk Management C: Sterilized Intervention in Foreign Exchange D: Unsterilized Intervention in Foreign Exchange E: Balance of Payment
- How has the development of credit and debit cards affected firms’ currency holdings?Asset-based lending is typically used to finance a. accounts receivable b. real estate. c. construction and development projects. d. accounts payable A credit facility is another name for: a. a branch bank. b. credit cards. c. Loans and agreements to make loans. d. wholesale banking. The prime rate is a. the base rate conventional loans b. the base rate on international loans c. none of the above d. the base rate on consumer loans The effective yield on the loan is the least when the loan is priced at a. 360-day year/actual number of days b. 365-days/actual number of days c. nominal rates/365 days d. 360-day year/30-day months Credit cards are one example of a. term loans b. open-end lines of credit c. closed-end lines of credit d. amortized payment loansWhat is National Savings Certificate? A. Short-term U.S. government debt obligation B. A fixed - income investment scheme C. A financial product commonly sold by banks, thrift institutions, and credit unions D. An unsecured money market instrument
- Which of the following is a matured money market instrument widely used in the USA, Europe and Asia where both cash and securities are the motivators? a. Commercial Papers b. Treasury Bills c. Repurchase Agreements d. Certificate of DepositsExplain the following: Liquidity management currency issue lender of last resort financial supervision Management of foreign currency reserves Determination of exchange rate policyExplain this function of BSP -Liquidity management -determination of exchange rate policy -lender of last resort -Currency Issue
- Which of the following is/are TRUE with respect to spot market liquidity? I. The market liquidity improves if more buyers and sellers willing to participate in the currency trading. II. The spot markets for heavily traded currencies such as the Euro and Pound are very liquid. III. A currency's liquidity affects the ease with which an MNC can obtain or sell that currency. IV. If a currency is illiquid, an MNC is typically able to quickly purchase that currency at a reasonable exchange rate. A. I, II, III B. I, III, IV C. II, III, IV D. I, IIA foreign currency loan is a typical example for O a. Currency Risk O b. Interest rate risk O c. Translation Exposure O d. Transaction ExposureWhich of the following statements is correct? A. Bitcoins are mainly used as financial investments, as opposed to a means of payment for services and goods. B. New Bitcoins are given to the miners who win by users whose transactions have been verified. C. If one exchange Bitcoins for domestic currency, the amount of Bitcoins in circulation decreases. D. Bitcoins are created by an institution that makes a loan in Bitcoins. E. Bitcoins are a liability for miners.