PT Ch19

PT Ch19 - Exam Name_ MULTIPLE CHOICE. Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) ________ may have a subsidiary that is a finance company, which provides loans to enable individuals and businesses to acquire a wide range of products. 1) A) Captive finance companies B) Bank holding companies C) Bank property companies D) Independent finance companies 2) A medium - term note (MTN) ________. 2) A) was not traditionally used to refer to debt issues with a maturity greater than one year but less than 15 years. B) is a corporate debt instrument, with the unique characteristic that notes are offered continuously to investors by an agent of the issuer. C) cannot be registered with the SEC under Rule 415 (the shelf registration rule). D) have not been sold with maturities from nine months to 30 years, and even longer. 3) The part of the risk premium or spread attributable to credit risk is called the ________. 3) A) premium spread. B) credit spread. C) risk spread. D) investor spread. 4) In regards to a syndicated bank loan, which of the below statements is TRUE? 4) A) The banks outside the syndicate have the right to sell their parts of the loan subsequently to other banks. B) Each bank in the syndicate provides the funds for which it has committed. C) Syndicated loans are distributed by two methods: assignment or participation with each method having its relative advantages and disadvantages, with the method of participation the more desirable of the two. D) A syndicated loan is not arranged by either a bank or a securities house. 5) Sourcing alternatives for a corporation include ________. 5) A) a subsidiary of a foreign bank that is established in the corporation's home country and a domestic bank in the corporation's home country. B) a foreign bank domiciled in a country where the corporation does business and a domestic bank in the corporation's home country. C) a subsidiary of a domestic bank that has been established in a country where the corporation
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PT Ch19 - Exam Name_ MULTIPLE CHOICE. Choose the one...

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