✅ The correct answer is option B.
Overnight loans transaction are part of trading of federal funds. Federal funds, often referred to as fed funds, are excess reserves that commercial banks and other financial institutions deposit at regional Federal Reserve banks; these funds can be lent, then, to other market participants with insufficient cash on hand to meet their lending and reserve needs.

✅ The correct answer is option C.
Sum of capital gains and dividend payments which are paid to stock holders on periodic basis is equal to return to stock holder. The return on shareholders’ equity ratio shows how much money is returned to the owners as a percentage of the money they have invested or retained in the company.

✅ The correct answer is option C.
Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as non-cumulative preferred stock. Noncumulative preferred stock is a type of preferred stock that allows the issuing company to skip dividends and which then cancels the company’s obligation to eventually pay those dividends.

✅ The correct answer is option B.
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.