a banker's acceptance is quizlet

Chapter 16 Business B) both individuals and business firms. Investments Exam 2 Ch. 9, 10, 18 Flashcards | Quizlet He has contacted his registered representative and inquires about purchasing a reverse convertible note on a Blue Chip stock because it offers a higher yield. $$ \text{Cost}=\frac { \left( 0.08\times $5,000,000\times { 1 }/{ 12 } \right) \left( 0.005\times $5,000,000\times { 1 }/{ 12 } \right) }{ $5,000,000 } \times 12=8.5\% $$, $$ \text{Cost}=\cfrac {\text{Interest}}{\text{Net proceed}} \times 12 $$, $$ \text{Cost}=\frac { \left( 0.078\times $5,000,000\times { 1 }/{ 12 } \right) }{ $5,000,000-\left( 0.078\times $5,000,000\times { 1 }/{ 12 } \right) } \times 12=7.85\% $$, $$ \text{Cost}=\cfrac {\text{Interest}+\text{Dealers commission}+\text{Backup costs} }{\text{Loan amount}-\text{Interest}} \ast 12 $$, $$ \begin{align*} \text{Cost} & \\ & =\frac { \$30 833.33 + \$1 041.66 + \$1 388.75}{ $5,000,000-\left( 0.074\times $5,000,000\times { 1 }/{ 12 } \right) } \times 12 \\ & =8.03\% \\ \end{align*} $$. Commercial paper. Ch2): Money Market Debt/Structured Products (Sec CFP Course 3 Quiz Answers. 1.The static spread is: a.the difference between the yield on a zero coupon bond and the yield on a coupon bond. B) nonmarketable. A customer owns a long-term negotiable CD. The Euro () c. The Japanese Yen () d. The German Deutsche Mark (DM), Which problem(s) not anticipated in an international sales contract? Study with Quizlet and memorize flashcards containing terms like For the purposes for which they are used, money market securities should have which of the following characteristics? Banker's Acceptances are often issued to finance the sale of goods in international trade. C) the fee charged by the importer's bank for issuing the letter of credit. I. WebStudy with Quizlet and memorize flashcards containing terms like A negotiable CD, A Chinese exporter sells $200,000 of toys to a French importer. 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. U.S. Quizlet - CD rates and T-bill rates track fairly closely. Contract of carriage c. Shipper's receipt of goods d. b and c. About us. Chapter 20: Money, Financial Institutions, and the Federal This would occur because:*, 5.2) *Which securities will trade with accrued interest? Web11. B) free the seller from concerns over the payment abilities of the buyer. For a line of credit which requires payment of a commitment fee: $$ \text{Cost}=\cfrac {\text{Interest}+\text{Commitment Fee}}{\text{Loan amount}} $$. WebStudy with Quizlet and memorize flashcards containing terms like True or false: A banker's acceptance is a form of commercial paper and can be bought and sold in the financial markets., Selling an exporter's accounts receivable on ordinary goods with the balance due upon delivery or soon after is called _____ ., A time draft with a maturity date of less than D) letter of credit. WebAssume that each grain of wheat weighs 1 / 7000 1/7000 pound. d) none of the above and more. A) unaffiliated known party transaction. A) transfer product. * a. Negotiable Certificates of Deposit b. The application process for a bankers acceptance is similar to that of a short-term loan and involves various credit and collateral checks. 2003-2023 Chegg Inc. All rights reserved. Preferred stock. d. Banker's acceptance., The most likely reason C) It must be in writing and signed by the maker or drawer. a money market instrument that is issued by corporations is a. commercial paper. Ch. 12 The short-term funding alternatives that are available to a company may be divided into bank sources and non-bank sources. If the banker's acceptance has a face value of $250,000, current rates on banker's acceptances are 6%, and the bank charges a commission of 1% per annum, how much will the exporter receive if he sells the acceptance in the secondary market six months prior to maturity? Quizlet (e) None of the above., China has become more important in international WebStudy with Quizlet and memorize flashcards containing terms like Everything else equal, an effective annual rate will be greater than the bond equivalent yield on the same security. SIE STC Ch. 5 B) affiliated party. A) clean drafts. Study with Quizlet and memorize flashcards containing terms like An auto dealer is a merchant when selling or leasing a new car but not when selling or leasing a pre-owned vehicle., Grinders Mill agrees to sell to harvest Company a certain quantity of refined grains. True. 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. A. liquid; segmented B. illiquid; segmented C. 184 ch 6 BLAW FINAL D) initiate the sale. FIN 350 Chapter 5 Document of title b. 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. A. discount B. WebStudy with Quizlet and memorize flashcards containing terms like banker's acceptance, bond indenture, budget and more. banker's acceptance. maebea. In mutual savings banks, all depositors are considered owners of the bank. FIN327 Ch 2 Quiz Business quiz chapter 18 447- Chp 19 A) ship money abroad. Buying extra inventory in response to an unexpected sale offered by a supplier Distributing the weekly paychecks Increasing the minimum cash balance for the firm's main bank account Unexpectedly purchasing a Chapter 15 & 16 Quiz a. slows, lengthens. B) importer, exporter, and shipping company. True. 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. A 50-day maturity money market security has a bond equivalent yield of 3.60 percent. Quizlet By note certificate of deposit trade acceptance cashier's check, Which of the following is not a negotiable instrument? 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. A) $250,000 B) $247,500 C) $248,750 D) $1,250. C) the export contract is signed. B) drawer. C) free the seller from any merchandise guarantees. Banker's acceptance is drawn by a creditor against the debtor, who pays the draft at maturity. A) drawee. WebA negotiable instrument commonly used in international trade. 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. Which of the following is NOT a requirement for a draft to become a negotiable instrument? (T/F), Any after-tax income paid by the corporation to common stockholders in the form of dividend is then taxed 2) a lack of personal contact. C) are the large money center banks. When Bank RI or any other bank assesses whether a business is creditworthy and capable of which is a loan that is approved before the money is actually needed. Question #2 of 84Question ID: 1268990 LIBOR is the rate that would be charged when banks borrow from other banks in Eurodollar market. D) none of the above. WebStudy with Quizlet and memorize flashcards containing terms like Money Market Instruments Which of the following is a money market instrument? Webe.accelerates, is unaffected. WebStudy with Quizlet and memorize flashcards containing terms like Under the Uniform Securities Act, what information would NOT need to be disclosed when filing a registration by qualification?, The Uniform Securities Act prohibits: A) Soliciting orders for unregistered, non-exempt securities B) Maintaining discretionary accounts C) Charging extraordinary d) none of the above and more. A) banker's acceptance. Which of the following money markets is used by corporations? Ch 10 - Secondary Mortgage Market & Bus 322 chapter 11 Some of the other terms in the deal are left open. A certificate of deposit. Exam 2 Financial banking 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 If a firm lies within a country with ________ or ________ domestic capital markets, it can achieve lower global cost and greater availability of capital with a properly designed and implemented strategy to participate in international capital markets. FINC 3310 Leavell - All Possible Exams 1, 2, 199 terms. Save 10% on All AnalystPrep 2023 Study Packages with Coupon Code BLOG10. t/f: The Foreign Credit Insurance Association is a branch of the U.S. federal government. b. a negotiable instrument. Bank Quizlet A customer wishes to buy a $50,000 certificate of deposit offered by your firm. Debt: Money Market Flashcards | Quizlet 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. WebBanker's Acceptances. WebStudy with Quizlet and memorize flashcards containing terms like The exporter - importer relationship to a corporation of a foreign importer that has not previously conducted business with the firm would be an: a. unaffiliated unknown. C) unaffiliated unknown. C) provides letters of credit for U.S. exporters. WebStudy with Quizlet and memorize flashcards containing terms like 1) Activity in money markets increased significantly in the late 1970s and early 1980s because of A) rising short-term interest rates. anything that is generally accepted as payment for goods and services. When the bank accepts the draft, the exporter discounts the 90-day note at a 4 percent discount. A) It acts as a receipt. Chapter 20 Quizlet Fin 3244 practice exam 3 Fsu Flashcards | Quizlet B) provides letters of credit for U.S. importers. Chapter 5 exam 2 B) prove ownership. individual retirement account. U.S. Treasury bills. (c) lowered trade barriers. normally fixed, if and when dividends are paid. Ch 17-18 Extra Credit Quiz D) are the investment banks that underwrite securities., 2) Money market securities have all the following characteristics t/f: A letter of credit is an agreement by the bank to pay against documents rather than the actual merchandise. commercial paper at 7.4% with dealers commission of % and backup costs of 1/3%. WebThis instrument is a. a banker's acceptance. WebStudy with Quizlet and memorize flashcards containing terms like The maximum maturity on a banker's acceptance is:, Banker's Acceptances are:, Commercial paper is a(n): and more. WebStudy with Quizlet and memorize flashcards containing terms like The valuation of bonds is generally perceived to be more difficult than the valuation of equity securities., Exporters can hold a banker's acceptance until the date at which payment is to be made, yet they frequently sell the acceptance before then at a discount to obtain cash immediately., A 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. Quizlet The least likely security that would be included in the fund is: a. U.S. Treasury note. What should the registered representative tell the client? t/f: The major advantage to the exporter of a letter of credit is that the exporter does not receive any funds until the documents have arrived at a local port or airfield. Click the card to flip . B) goods are shipped. EXTENDED Questions ch5 Regulations The price of the ETN rose 2% after the downgrade was announced. and more. WebStudy with Quizlet and memorize flashcards containing terms like The _________ is a statistic used to compute the pace of inflation or deflation., ____________ refers to the efforts of the federal government to keep the economy stable by increasing or decreasing taxes and/or government spending., The measure used to report price changes at the Answer: D. t/f: A sight draft is payable on presentation to the drawee; a time draft allows a delay in payment. WebStudy with Quizlet and memorize flashcards containing terms like Of all the payment methods available in international trade, ____ probably affords the most protection to the exporter, while ____ probably affords the least protection. D) It acts as all of the above. This is also used extensively in foreign trade, a banker`s acceptance is like a The ________ is the instrument normally used to actually effect payment in international commerce. The amount of money the Federal Reserve Bank makes available for people to buy goods and services. Each stockholder must accumulate his votes and cast them for one director B. Commercial paper, Treasury bills, and banker's acceptance rates are all quoted as discount yields. 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 The draft is the instrument normally used in international commerce to. If the banker's acceptance has a face value of $250,000 and the bank charges a commission of 1% per annum, how much will the exporter receive from the banker if the acceptance is held until maturity six months from today? Chap 16 International Trade Finance Banker's Acceptances may be sold without a prospectus. WebStudy with Quizlet and memorize flashcards containing terms like True, True, I and II and more. A company is considering three options for borrowing $5 million for one month: Which of these forms of borrowing has the lowest cost of credit? WebStudy with Quizlet and memorize flashcards containing terms like Which security is NOT subject to reinvestment risk?, Your customers wish to give a gift of securities to their friend's child. Ch. 16 WebStudy with Quizlet and memorize flashcards containing terms like Bank of International Cooperation (JBIC), banker's acceptance, beta risk and more. Bank. dollar dual currency bond that pays $651.25 at maturity per 1,000, is, When the bond sells at par, the implicit SF/$ exchange rate at maturity of a Swiss franc/U.S. Money markets. B) clean draft. A: Treasury Bill B: Repurchase Agreement C: 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. A. A) direct; ownership B) direct; debt C) indirect; Which of the following can initiate repurchase agreements with government and agency securities as collateral? Money Market Debt/Structured Products Flashcards | Quizlet WebThe exporter's bank presents the shipping documents and the time draft to the importer's bank. Which securities will trade with accrued interest? D) neither A nor B of the above., 2) Money market securities have all Start studying for CFA exams right away! The total world harvest of all grains (wheat, rice, and corn) in 2016 2016 was about 2.5 2.5 billion tons. FIN MARKETS CH 5 FIN310 Chapter 17 Questions This is an example of an. Payments company Matera reviewed data from the Central Bank of Brazil and found that Pix transactions for Q1 2023 totaled 8.1 billion versus 4.2 billion credit card and The exporter-importer relationship to a corporation of a foreign importer that has not previously conducted business with the firm would be an. Webc) letter of credit, time draft, and a banker's acceptance. Certificate of Deposit Banker's Acceptance WebAn investment banker arranges the transaction. WebStudy with Quizlet and memorize flashcards containing terms like All of the following statements are true regarding Construction Loan Notes EXCEPT: a. a. consignment; prepayment b. open account; prepayment c. prepayment; open account d. prepayment; consignment, t/f: The primary advantage of a letter of credit is that it reduces risk. B) the time involved in shipping is generally reduced. A banker's acceptance is a ________ that has been accepted by a bank. Correct A. ADR B. LIBOR C. Eurodollar deposit D. Banker's Acceptance. Banker's Acceptance (BA): Definition, Meaning, and Types Commercial paper has a maximum maturity of 270 days. D) exchange-traded funds (ETFs)., BigCo, Inc., issues a collateral trust bond. A) The cost of credit insurance. S65 Flashcards | Quizlet WebStudy with Quizlet and memorize flashcards containing terms like Which of the following money market instruments is issued by corporations? WebShort 1 IBS Jul 50 covered call. Maturity (payback) dates are normally between 1 day and 270 days (9 months). B) banker's acceptances (BAs). D) be issued by the bank at the request of an exporter. 30 days, because a longer maturity would cause the issue to be non-exempt B. WebStudy with Quizlet and memorize flashcards containing terms like How banks help conduct business in other countries (international banking services), Money, Barter and more. 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? A Repurchase agreements are used by dealers to reduce the carrying cost of Government C) The historic collection risk of the exporter.