Type of bonds which does not have U.S treasury as collateral and are swapped for outstanding loans are classified as

A collateral bonds
B sovereign bonds
C primary bonds
D secondary bonds

Correct Answer: sovereign bonds

Type of bonds which does not have U.S treasury as collateral and are swapped for outstanding loans are classified as sovereign bonds. A sovereign bond is a debt security issued by a national government. Sovereign bonds can be denominated in a foreign currency or the government’s domestic currency; the ability to issue bonds denominated in domestic currency tends to be a luxury that most governments do not enjoy the less stable of a currency denomination, the higher the risk the bondholder's faces.
Bissoy MCQ
#Management #International Finance And Treasury

Related Questions

Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as
A indenture bonds
B trustee bonds
C collateral bonds
D mortgage bonds
Principal investors of US treasury bills which are issued by US treasury does not includes
A mutual funds
B extensive funds
C corporations
D brokers and dealers
If Taka 4,500 was invested in bonds of a corporation when the price per bond was Tk. 9.00 and Taka 3,000 was invested in bonds of another corporation when the price was Tk. 10.00 per bond, what was the average price of bonds purchased?
A Tk. 9.625
B Tk. 9.50
C Tk. 9.40
D Tk. 9.375
Type of bond for which bonds present value is greater than bonds face value is classified as
A coupon bond
B interest bonds
C discount bond
D premium bond
Bonds issued for longer term and must be sold in country whom currency is not used in denomination of bonds are classified as
A interbank bonds
B intrabank bonds
C Australian bonds
D Eurobonds
Bonds which are more risky than corporate bonds and are issued by major corporations are classified as
A common stocks
B corporate stocks
C leases
D preferred stocks
Premium which is considered as difference of expected return on common stock and current yield on Treasury bonds is called
A current risk premium
B past risk premium
C beta premium
D expected premium
Fill in the blank : It is necessary to be ----while dealing with mounting outstanding loans.
A confident
B active
C prudent
D bold
Fill in the blanks : It is necessary to be -------while dealing with mounting outstanding loans.
A confident
B aggressive
C active
D bold
Answer the question on the basis of the given information. Businesses are suffering because of lack of money available for development loans.To help businesses,the government plans to modify the income- tax structure in order to induce individual tax payers to put a larger portion of their incomes into retirement savings accounts, because as more money is deposited in such accounts, more money becomes available to borrowers. Which of the following, if true, raises the most serious doubt regarding the effectiveness of the government's plan to increase the amount of money available for development loans for businesses?
A When levels of personal retirement saving increase, consumer borrowing always increases correspondingly.
B The increased tax revenue the government would receive as a result of business expansion would not offset the loss in revenue from personal income taxes during the first year of the plan.
C Even With tax incentives,some people will choose not to increase their levels of retirement savings .
D Bankers generally will not continue to lend money to Businesses whose prospective earnings are insufficient to meet their loan repayment schedules.

Next steps