2) a lack of personal contact. Ch 17-18 Extra Credit Quiz b. affiliated party. Under which scenario will the customer receive less than par value at maturity? Short-term changes in exchange rates can affect operating costs and revenues of firms engaged in international business activities. Chapter 20 Flashcards | Quizlet A) when the merchandise has not been paid for in advance B) when the transaction is being financed by a bank C) when the shipment is to an affiliate D) none of the above. Banker's Acceptance (BA): Definition, Meaning, and Types B) It acts as a contract. Ch. 16 Video- Moonworks WebFI 1 Get a hint What is a banker's acceptance? WebA bill of exchange drawn on and accepted by a commercial bank. WebStudy with Quizlet and memorize flashcards containing terms like Which one of the following best represents the transaction motive for holding cash? d) none of the above and more. Bank of America Fined $150 Million Over Junk Fees - The New - denominations range from $100,000-$10 million. What is the term for the amount a firm will pay shareholders based on the size of their investment in the company? 2 & 3. EXTENDED Questions ch5 Which of the following is NOT a requirement for a draft to become a negotiable instrument? A banker's acceptance requires payment by a specified date. Quizlet C) free the seller from any merchandise guarantees. B) unaffiliated unknown party transaction. WebA negotiable instrument commonly used in international trade. 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 WebWhich of the following statements BEST describes a banker's acceptance (BA)? Midterm 2- Set B) The historic collection risk of the importer. Study with Quizlet and memorize flashcards containing terms like reserve requirement, certificate of deposit, commercial banks and more. B) drawer. WebStudy with Quizlet and memorize flashcards containing terms like A banker's acceptance is A. a time draft drawn on the exporter's bank. The maturity on the notes is generally 2 to 5 years b. 15. - CD rates and T-bill rates track fairly closely. A 50-day maturity money market security has a bond equivalent yield of 3.60 percent. Business Law Final Review Check all that apply. WebM-2 = M-1 + money market accounts + CD. Which of the following is NOT a factor in the discounting of a securitized export receivable? The amount of money the Federal Reserve Bank makes available for people to buy goods and services. D. b.the difference between a fixed-rate yield and a floating-rate yield. d. a trade acceptance. Chapter 16 t/f: The Foreign Credit Insurance Association is a branch of the U.S. federal government. A) $250,000 B) $244,000 C) $242,500 D) $241,250. WebStudy with Quizlet and memorize flashcards containing terms like The P/E ratio of a company is:, What is a warrant?, What is a right? B) affiliated party. t/f: Today, international trade is dominated by transactions between unaffiliated parties (known or unknown). Debt Securities d. 12. Question #2 of 84Question ID: 1268990 SIE STC Ch. 5 Trades of all of the following will settle in Fed Funds, All of the following statements are true regarding the Federal Funds rate. provide a low-cost source of funds to firms, the government, and intermediaries that need a short term infusion of funds. True. This is also used extensively in foreign trade, a banker`s acceptance is like a 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. D) the exporting firm is considered of higher risk. Your customer is long 1 October 75 put at 2. A bill of exchange or draft drawn on a bank and commonly used to guarantee exporters that they will receive payment on goods delivered to importers is a/an. WebStudy with Quizlet and memorize flashcards containing terms like 1. Which one of the following is the interest rate that the largest commercial banks charge their most creditworthy corporate customers for short-term loans? However, the firms have communicated regularly since the last sale three years ago. The member must perform a reasonable basis suitability determination before the product can be recommended to some of the members customers The member must perform a customer specific suitability analysis in order to make a recommendation of a structured product to an individual customer The member must have procedures to determine that the account is eligible to purchase structured products and generally must have the account approved for options trading, Under FINRA rules, if a member firm wishes to offer a structured product to its customers, all of the following statements are true, must determine that an investment in the reference asset is suitable for that particular investor, All of the following statements are true about ETNs, -ETNs are a structured product -ETNs are suitable for investors seeking long-term capital gains. commercial paper at 7.4% with dealers commission of % and backup costs of 1/3%. A) commercial invoice B) banker's acceptance C) packing list D) bill of lading. D) any of the above. A secondary market exists for banker's acceptances. What constitutes a failed auction for an Auction Rate Security? 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. FINC 409 Ch. 2 WebStudy with Quizlet and memorize flashcards containing terms like The two basic components of the U.S. money supply (M1) are physical money and demand deposits., Representative full-bodied money consists of paper money fully backed by a precious metal, Fiat money must be backed by a specific amount of gold or silver. ___ 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. Activity in the secondary WebStudy with Quizlet and memorize flashcards containing terms like Exporters may not know if importers are good credit risks. B) importer, exporter, and shipping company. Is funded debt of the issuer B. Matures on a pre set date and at a pre set price C . True. Banker's Acceptances are often issued to finance the sale of goods in international trade. The customer wishes to know if the CD is FDIC insured. WebStudy with Quizlet and memorize flashcards containing terms like A ____________ is a specialized form of promise to pay money given by a maker in which the bank is the maker. True. Low trading costs II. B) nonmarketable. represents the most basic form of company ownership and includes voting rights and dividends, if and when the firm elects to pay dividends. C) the export contract is signed. WebStudy with Quizlet and memorize flashcards containing terms like A "blue chip" corporation experiencing a short term cash flow shortage could issue: A. banker's acceptances B. WebStudy with Quizlet and memorize flashcards containing terms like 5.1) *A customer buys a Brokered CD for $100,000. WebAn entity that sells goods and services usually accepts either cash or credit. What is the bank's asset utilization ratio? A) clean drafts. Debt: Money Market Flashcards | Quizlet WebWhich of the following indicates a firm will be able to pay its bills in a satisfactory manner? WebShort 1 IBS Jul 50 covered call. Fin 3244 practice exam 3 Fsu Flashcards | Quizlet Select one: a. A) banker's acceptance B) bill of exchange C) bill of lading D) letter of credit, The person or company initiating the draft or bill of exchange is known as the. Quizlet Federal funds C. prime D. bid E. call money, 2. D) neither A nor B of the above., 2) Money market securities have all B. an add-on instrument. 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 They have formal legal agreements; collateralized loans these loans require a borrower to list a collateral in the form of an asset; a line of credit at 8% with a 0.5% commitment fee on the full amount and no compensating balances; a bankers acceptance at an all-inclusive rate of 7.8%; and. Quizlet c. a promissory note. Quizlet Ch 10 - Secondary Mortgage Market & WebStudy with Quizlet and memorize flashcards containing terms like The current yield on a bond with a coupon rate of 7.5% currently selling at 105 1/2 is approximately: - 8.5% - 8% - 7.1% - 7.5 %, If your customer holds ten KP 6% bonds, how much money will he receive in total at the debenture's maturity?, Which of the following statements regarding Treasury C) transfer title. Money Market Debt Review Questions Flashcards | Quizlet Which of the following documents is NOT part of a system designed to protect both the importer and exporter from non - completion of trade? WebStudy with Quizlet and memorize flashcards containing terms like 1. A repo is in essence a collateralized A. banker's acceptance. $$ \text{Cost}=\frac { \left( 0.08\times $5,000,000\times { 1 }/{ 12 } \right) \left( 0.005\times $5,000,000\times { 1 }/{ 12 } \right) }{ $5,000,000 } \times 12=8.5\% $$, $$ \text{Cost}=\cfrac {\text{Interest}}{\text{Net proceed}} \times 12 $$, $$ \text{Cost}=\frac { \left( 0.078\times $5,000,000\times { 1 }/{ 12 } \right) }{ $5,000,000-\left( 0.078\times $5,000,000\times { 1 }/{ 12 } \right) } \times 12=7.85\% $$, $$ \text{Cost}=\cfrac {\text{Interest}+\text{Dealers commission}+\text{Backup costs} }{\text{Loan amount}-\text{Interest}} \ast 12 $$, $$ \begin{align*} \text{Cost} & \\ & =\frac { \$30 833.33 + \$1 041.66 + \$1 388.75}{ $5,000,000-\left( 0.074\times $5,000,000\times { 1 }/{ 12 } \right) } \times 12 \\ & =8.03\% \\ \end{align*} $$.