16. Euro credits a. are short-term and medium-term loans are denominated b. are extended by banks in Europe / the Eurozone C. are offered to corporations, sovereign governments, non-prime banks, or international organizations. d. all of the options 17. So-called subprime mortgages were typically all of the following, except for a. mortgages granted to borrowers with less-than-perfect credit. b. backed by the full faith and credit of the U.S. government. C. not held to maturity by the originating lender but instead resold to servicing banks. d. aggregated and sliced into tranches representing a different risk class.
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- q17 Which of the following types of loans has lower interest rate compared to others? a. Line of Credit b. All the options are wrong c. Long Term Loan d. Short-Term Loan q18 Which of the following is not a Money Market Instrument? a. Certificate of Deposit b. Debentures c. Commercial Paper d. Treasury BillTypical features of a Syndicated Loan are Select one: Oa. Floating Rate of Interest b. Based on London Interbank Offer Rate C. Arranged by a group of banks d. All of the above O e. Only a and c f. Only b and cThe rate of interest charged on loans from a country perceived to have no risk of defaulting is called Group of answer choices the interest rate parity the MNC adjusted rate the risk free rate the weighted average cost of capital
- a) What is the difference between a Foreign Bond and a Eurobond? Explain you answer with examples. b) Define Equity, Debt and Derivative. c) Describe the main types of non-bank Financial Institutions (FI). Give two examples of non-bank FI’s that are allowed to accept deposits.1. Which of the following is not a way in which banks lend short-term unsecured loans? Choices: By sending the amount earned from trust and investment products offered by the bank Through a guaranteed credit line that has a commitment fee for any unused amount for the year Through credits cards lines with a certain credit limit By lending a single date maturity loan to a debtor 2. The following are methods of acquiring funds through long-term financing, except Choices: Issuing bonds with semi-annual coupon payment at a discounted price Selling equity securities at an amount above the par value indicated in the stock certificate Issuing a note that indicates a promise to pay the indicated supplier in a future date Selling equity securities with a characteristic of both debt and equity security 3. Which is false about long-term sources of a firm's capital? Choices: Preferred shares are securities whose intrinsic value is based on prospective earnings All types of…A Eurobond is a Group of answer choices A. bond payable in the borrower's currency and sold inside the borrower's country. B. bond payable in the investor's currency but sold inside the borrower's country. C. bond payable in the borrower's currency but sold outside the borrower's country. D. bond payable in the investor's currency but sold outside the borrower's country.
- A credit default swap (CDS) is a privately negotiated contract which you can use to: Question 2 options: hedge prepayment risk on a pool of mortgages. hedge default risk on fixed income assets. hedge interest rate risk on fixed income assets. hedge exchange rate risk on euroyen deposits.Which of the following is NOT a form of long-term debt financing? Question 12 options: 1) Bond issue. 2) Bank term loans. 3) Accounts Payable. 4) Leasing.7- which of the statements given below is true? Please select one; a) every financial market allows loans to be made b) The New York Stock Exchange is an example of a primary market c) the capital market is a financial market in which only short term debt instruments (generally those with an original maturity of less than one year) are traded d) a pansion fund is not a contractual savings instution e) in the US financial intermediaries are restricted in what they are allowed to do and what assets m m they can hold
- Which of the following are characteristics of consumer closed credit (installment debt)? 1. generally the loan is larger than what is available with revolving credit 2. flexibility in the amount and timing of the debt repayment 3. the loan repayment is often fully amortized 4. the interest rate on a collateralized installment loan is typically lower than the interest rate on unsecured revolving credit 5. if the loan is paid before the grace period, then no interest applies 1 and 2 O 2, 4 and 5 O 1, 3 and 4 O 3 and 4Which one of the following is the rate that most international banks charge when they loan Eurodollars to other banks? A. ADR B. LIBOR C. Cross-rate D. Gilt rate E. Swap rateWhich interest rate is used on very short term loans from one bank to another? A. PRIME INTEREST RATE B.TREASURY BILL RATE C. COMMERCIAL PAPER RATE D. FED FUNDS RATE