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MCQs

Total Questions : 50 | Page 2 of 5 pages
Question 11. These are PDIC-insured deposit accounts that are usually managed by banks or brokerages and can be a convenient place to store money that is to be used for upcoming investments
  1.    Money Market Deposit Accounts
  2.    Capital Market Deposit Accounts
  3.    Negotiable Market Deposit Accounts
  4.    Repurchase Market Deposit Accounts
 Discuss Question
Answer: Option A. -> Money Market Deposit Accounts
Question 12. It is a contractual agreement between a bank, known as the issuing bank, on behalf of the buyer (drawer)
  1.    Time Draft
  2.    International letter of credit
  3.    Commercial letter of credit
  4.    Domestic letter of credit
 Discuss Question
Answer: Option C. -> Commercial letter of credit
Question 13. These are legal contracts that involve the actual sale of securities by a borrower to a lender with a commitment on the part of the borrower to repurchase the securities at the contract price plus a stated interest charge at a later date
  1.    Repurchase agreement
  2.    Money market deposit
  3.    Certificate of Deposit
  4.    Time Draft
 Discuss Question
Answer: Option A. -> Repurchase agreement
Question 14. It is an order for the bank to pay a specified amount of money to the bearer of the time draft on a given date
  1.    Banker's acceptance
  2.    Certificate of Deposit
  3.    Negotiable certificate of deposit
  4.    Time Draft
 Discuss Question
Answer: Option D. -> Time Draft
Question 15. It is bank-issued time deposit that specifies an interest rate and maturity date and is negotiable
  1.    Banker's acceptance
  2.    Time draft
  3.    Commercial letter
  4.    Negotiable certificate of deposit
 Discuss Question
Answer: Option D. -> Negotiable certificate of deposit
Question 16. These are issued by the Bureau of the Treasury with 91-day, 182-day, and 364-day maturities
  1.    Treasury Bills
  2.    Issue price
  3.    Both A & B
  4.    None of these
 Discuss Question
Answer: Option A. -> Treasury Bills
Question 17. It is a receipt issued by a commercial bank for the deposit of money
  1.    Negotiable certificate
  2.    Certificate of deposit
  3.    Confirmation letter
  4.    Time draft
 Discuss Question
Answer: Option B. -> Certificate of deposit
Question 18. These are assets that will be converted to cash within a period one year
  1.    Current Assets
  2.    Intangible assets
  3.    Investments
  4.    None of these
 Discuss Question
Answer: Option A. -> Current Assets
Question 19. They are paper or electronic evidences of debt dealt in the money markets
  1.    Money market instruments
  2.    Cash management bills
  3.    Treasury Bills
  4.    Discount yield
 Discuss Question
Answer: Option A. -> Money market instruments
Question 20. The money market provides liquidity for deficit units; the capital market finances economic growth
  1.    True
  2.    False
 Discuss Question
Answer: Option A. -> True

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