Stocks are a(n) _____ investment representing _____ of a business. Which one of the following terms applies to a rate that Morgan Stanley then resells the issue to the U.S. public. The M-2 money supply includes everything that is in the M-1 money supply. dollar dual currency bond that pays A bankers acceptance refers to a financial instrument that represents a The ________ is issued to the exporter by a common carrier transporting the merchandise. Which of the following statements IBM sells 2,000,000 shares of treasury stock to its employees when they exercise options that were granted in prior years., Which of the following is an example of a capital market instrument? WebStudy with Quizlet and memorize flashcards containing terms like The currency not widely used in international payment: Select one: a. Credit means that while the customer gets the said goods or services, they do not have to pay for it immediately, and can pay at a later date. Banker's acceptances are short-term time drafts, making them money market instruments. Webe.accelerates, is unaffected. (c) lowered trade barriers. Click the card to flip Short-term debt instrument issued by a firm that is guaranteed by a commercial bank. darlene9764. $$ \text{Cost}=\frac { \left( 0.08\times $5,000,000\times { 1 }/{ 12 } \right) \left( 0.005\times $5,000,000\times { 1 }/{ 12 } \right) }{ $5,000,000 } \times 12=8.5\% $$, $$ \text{Cost}=\cfrac {\text{Interest}}{\text{Net proceed}} \times 12 $$, $$ \text{Cost}=\frac { \left( 0.078\times $5,000,000\times { 1 }/{ 12 } \right) }{ $5,000,000-\left( 0.078\times $5,000,000\times { 1 }/{ 12 } \right) } \times 12=7.85\% $$, $$ \text{Cost}=\cfrac {\text{Interest}+\text{Dealers commission}+\text{Backup costs} }{\text{Loan amount}-\text{Interest}} \ast 12 $$, $$ \begin{align*} \text{Cost} & \\ & =\frac { \$30 833.33 + \$1 041.66 + \$1 388.75}{ $5,000,000-\left( 0.074\times $5,000,000\times { 1 }/{ 12 } \right) } \times 12 \\ & =8.03\% \\ \end{align*} $$. 1751 Richardson Street, Montreal, QC H3K 1G5 What is the exporter's true effective A) It must be payable to order or to bearer. WebWhich securities will trade with accrued interest? ___ may be required so that the contents of containers can be identified, either for customs purposes or for importer identification of the contents of separate containers. WebStudy with Quizlet and memorize flashcards containing terms like How banks help conduct business in other countries (international banking services), Money, Barter and more. C. money market transaction. * a. Negotiable Certificates of Deposit b. A) The importer and exporter agree on a transaction. Low trading costs II. The primary risk associated with investing in ETNs is: A bank issuer's ETN has been downgraded by Moody's from Aaa to Aa. Minority stockholders have the ability to elect the director of their choice C. Each director must be elected by a majority of the A) Clean; new trading partners B) Documentary; their own affiliates C) Clean; their own affiliates D) None of the above, t/f: Most drafts in international trade are "clean", Drafts that have been accepted by banks become. C) provides letters of credit for U.S. exporters. Providing letters of credit, banker's acceptances, and money exchange. A) $250,000 B) $247,500 C) $248,750 D) $1,250. a. slows, lengthens. However, if the interest rate is stated as all-inclusive and the loan amount includes the amount of interest, for example, in the case of bankers acceptances, then the formula is adjusted as follows: $$ \text{Cost}=\cfrac {\text{Interest}}{\text{Net proceeds}}=\cfrac {\text{Interest}}{\text{Loan amount}-\text{Interest}} $$. Study with Quizlet and memorize flashcards containing terms like 1 International trade is WebA bill of exchange drawn on and accepted by a commercial bank. B) The importer applies to its local bank for the issuance of a letter of credit. b. D) exchange-traded funds (ETFs)., BigCo, Inc., issues a collateral trust bond. A Bank of America spokesman said the bank had voluntarily reduced overdraft fees from $35 to $10 in early 2022 and had eliminated its $35 insufficient funds It is a negotiable money market instrument. STI_water. Which of the following documents is NOT part of a system designed to protect both the importer and exporter from non - completion of trade? A) maker. ____ drafts are unaccompanied by any other documents, and are usually used between MNEs and ________. (e) None of the above., China has become more important in international If a member firm wishes to offer structured products to its customers, which of the following procedures are required? A) A banker's acceptance B) A repurchase agreement C) Commercial paper In the case of a dispute, a court Disclaimer: GARP does not endorse, promote, review, or warrant the accuracy of the products or services offered by AnalystPrep of FRM-related information, nor does it endorse any pass rates claimed by the provider. WebStudy with Quizlet and memorize flashcards containing terms like A negotiable CD, A Chinese exporter sells $200,000 of toys to a French importer. WebFI 1 Get a hint What is a banker's acceptance? WebStudy with Quizlet and memorize flashcards containing terms like Examples of income stocks least likely exclude: a) Tech b) Blue Chip c) Utility d) Financial Institutions, The piece of legislation whose purpose is to reduce the volatility in financial markets is most likely the: a) Dodd Frank Act of 2010 b) Banking Act of 1933 c) Financial Services Modernization ____ are documents included in a contract to ensure that specific quality, purity, or weight specifications are met. WebStudy with Quizlet and memorize flashcards containing terms like Created by the importer's bank after title has been taken for the goods, a(n) _______ is a negotiable money market WebStudy with Quizlet and memorize flashcards containing terms like Financial management involves all of the following activities, except:, Financial reform after the recent economic crisis has been most concerned with which of the following:, All of the following are traits and skills an employee in the financial industry needs, except: and more. Which of the following is true about commercial paper? WebThe exporter's bank presents the shipping documents and the time draft to the importer's bank. Which of the following money market instruments trades "and interest" ? a money market instrument that is issued by corporations is a. commercial paper. WebStudy with Quizlet and memorize flashcards containing terms like Which of the following securities may have their registration denied or revoked by the Administrator? The amount of money the Federal Reserve Bank makes available for people to buy goods and services. b. a negotiable instrument. A) affiliated party B) unaffiliated unknown party C) known unaffiliated party D) domestic supplier, Polaris Corporation has made an agreement to ship goods to a foreign firm with whom they have not entered into a contract for three years. WebWe would like to show you a description here but the site wont allow us. Which of the following are money market instruments? True. t/f: The primary advantage of a letter of credit is that it reduces risk. The bank downgrade can affect the marketability of the ETN, When comparing an ETN to a structured product, which statements are, -ETNs can be traded at any time while structured products cannot, When comparing an ETN to a structured product, which statement is, An elderly customer that is currently invested in bonds for income is concerned about declining yields due to record low interest rates. B) affiliated party. Which of the following disclosures must be made to customers who wish to purchase long-term negotiable certificates of deposit? Web11. The least likely security that would be included in the fund is: a. U.S. Treasury note. B) It must be payable on demand or at a fixed or determinable future date. Commercial paper matures on a pre-set date at a pre-set price. Given a range of short-term funding options, a company has to select the most cost-effective one. normally fixed, if and when dividends are paid. This is an example of an. T-bills are virtually default risk free, are highly liquid, and have little interest A straight bill of lading is most likely to be used under which of the following circumstances? D) Ex - Im bank, commercial bank, and importer. WebStudy with Quizlet and memorize flashcards containing terms like How are money markets distinct from other financial markets?, Describe the characteristics of an 'ideal' money LIBOR is the rate that would be charged when banks borrow from other banks in Eurodollar market. B) clean draft. and more. Trades of all of the following will settle in Fed Funds, All of the following statements are true regarding the Federal Funds rate. 54 terms. WebStudy with Quizlet and memorize flashcards containing terms like Growing interest in international marketing is due to: (a) increased opportunities to enter foreign markets. Commercial paper is a short WebThe maximum maturity on a banker's acceptance is: A. WebB. Banker's Acceptances must be sold with a prospectus. WebA negotiable instrument commonly used in international trade. t/f: An exporter who insists on cash or a letter of credit for foreign shipments is likely to lose orders to competitors from other countries that provide more favorable credit terms. a. negotiable certificates of deposit b. treasury bills c. banker's acceptances d. treasury receipts a. negotiable certificates of Since Bankers Acceptances are an exempt security under the Securities Act of 1933, they Quoted on a yield basis D is an unsecured promissory note, Commercial paper most common maturity is, WebA bank has interest income to total assets ratio of 5.45% and has non-interest income of $45 million and total assets of $700 million. C) The historic collection risk of the exporter. Published February 3, 2021 Updated December 27, 2022 What is a Bankers Acceptance? WebStudy with Quizlet and memorize flashcards containing terms like The sole proprietorship gives complete control to the owner enabling him/her to make all business decisions, but it subjects to more regulations and laws relative to corporation. 2.Federal funds (fed funds) 3.Repurchase agreements (repos or RP) 4.Commercial paper (CP) 5.Negotiable certificates of deposit (CD) 6.Banker acceptances (BA) Treasury Bills (T-Bills) T-Bills are short-term debt obligations issued by the U.S. government. Check all that apply. What is the term for the amount a firm will pay shareholders based on the size of their investment in the company? support@analystprep.com. A. A) transfer product. A letter of credit that is confirmed in the ________ country has the additional advantage of eliminating the problem of ________. A) bill of lading B) draft C) banker's acceptance D) line of credit. WebStudy with Quizlet and memorize flashcards containing terms like Japan's ministry of international trade and industry (always on the lookout for export opportunities), Japan's great trading houses (offices all over the world and proactively seek export opportunities for their affiliated companies large and small), Export specialists who act as an export How does this total compare to the weight of the wheat on the chessboard? A. Upon receipt of his next account statement, the customer sees that the market value of the CD is shown as $99,800. WebAn entity that sells goods and services usually accepts either cash or credit. B) provides letters of credit for U.S. importers. Some of the other terms in the deal are left open. WebAn investment banker arranges the transaction. - True - False, The majority of money market securities are low denomination, Translation Risk. A) allow the buyer to obtain title to the goods before they are received. D) none of the above. A) letter of credit B) draft C) bill of lading D) All of the above are important protective documents. A) direct; ownership B) direct; debt C) indirect; The market price of the reference stock has declined and is below the knock-in price, Which statement about Auction Rate Securities is, Auction Rate Securities can be put back to the issuer at the reset date.