Management

✅ The correct answer is option B.
Larger fluctuations in portfolio value of foreign exchange of financial institutions leads to greater volatility of rates. It is the money value of your investment portfolio.

✅ The correct answer is option D.
According to demand for funds curve, demand curve shifts down and to left if there is decrease in equilibrium interest rate. The equilibrium interest rate is the rate at which the quantity of money demanded is equal to the quantity of money supplied. The Federal Reserve can alter the equilibrium interest rate by adjusting the supply of money. The demand for money and supply of money can be graphed to determine the equilibrium interest rate.

✅ The correct answer is option C.
Interest rate on Eurobonds are paid annually. A Eurobond is debt instrument that’s denominated in a currency other than the home currency of the country or market in which it is issued.

✅ The correct answer is option C.
Process of issuing treasury bills is classified as treasury bills auction. Bill auction is a public auction for Treasury bills that is held weekly by the U.S. Treasury. As of 2019, there are 24 authorized primary dealers that are required to bid directly upon each issue. This is the manner in which all U.S. Treasury bills are issued.

✅ The correct answer is option A.
Foreign Exchange Regulation Act was replaced with The Foreign Exchange Management Act in the year 1973 and it came in force from January 1, 1974. It was amended by the Foreign Exchange Regulation (Amendment) Act 1993 and later in 2000, was replaced by FEMA.

✅ The correct answer is option B.
When characteristics of bonds are perceived as unfavourable or favourable to holders of bond then differences of yield spread must changes. Organizations in order to raise capital issue bond to investors which is nothing but a financial contract, where the organization promises to pay the principal amount and interest (in the form of coupons) to the holder of the bond after a certain date. (Also called maturity date).Some Bonds do not pay interest to the investors, however it is mandatory for the issuers to pay the principal amount to the investors.

✅ The correct answer is option B.
Change in interest rate measured in percentage for given interest rate change is classified as elasticity. Elasticity is a measure of a variable’s sensitivity to a change in another variable. In business and economics, elasticity refers the degree to which individuals, consumers or producers change their demand or the amount supplied in response to price or income changes.