The drafts which are backed up by banks and are payable to seller of products or services are classified as ___________?

Related Mcqs:

1. The bankers acceptance which is usually time draft is fully backed by ___________?

   A. commercial banks
   B. Swiss banks
   C. agriculture banks
   D. functional banks

2. The economic period in which the banks have excess funds is classified as _____________?

   A. functional time line
   B. contract timing
   C. contraction period
   D. expansionary periods

3. The type of Eurodollars deposits denominated in banks outside United States is classified as __________?

   A. mutual certificate of deposit
   B. euro dollar certificate of deposit
   C. expansionary certificate of deposit
   D. euro dollar contraction deposit

4. The most flexible and liquid source of funding for savings banks is ___________?

   A. annual loan market
   B. federal funds market
   C. functional funding market
   D. secured funding market

5. The rate which is used in major banks in United States as a rate for industrial and commercial loans is _____________?

   A. London intra bank offered rate
   B. London interbank offered rate
   C. euro interbank offered rate
   D. demand intra bank rate

6. The banks that deals with reciprocal agreements and accounts are considered as ____________?

   A. correspondent banks
   B. non-correspondent banks
   C. reciprocal transactions
   D. functional banks

7. The principal issuer of the commercial papers are commercial banks and the major investors of principal investors includes ____________?

   A. brokers and dealers
   B. corporations
   C. other financial institutions
   D. all of the above

8. The short term promissory notes are unsecured and not collateralized against securities, hence it is classified as ___________?

   A. notes payable
   B. notes receivable
   C. commercial paper
   D. commercial notes

9. The type of instrument whoever holds it, gets the interest and principal amount is classified as ___________?

   A. term instrument
   B. interim instrument
   C. primary instrument
   D. bearer instrument

10. The markets which reallocate liquid funds in relatively fixed amounts are classified as ___________?

    A. capital markets
    B. debt markets
    C. secondary markets
    D. primary markets