Chapter 5
Using the numbers 1, 2, 3, and 4, rank the following four assets from most liquid (1) to least
liquid (4).
A 10,000-square-foot office building
4
$2,000 in cash
1
A $10,000 Treasury bill
2
1
Chapter 2
Evidence from business cycle fluctuations in the United States indicates that:
a. recessions have been preceded by dollar depreciation.
b. a negative relationship between money growth and ge
Chapter 6
If junk bonds are "junk," then why would investors buy them?
a. Junk bonds can provide high yields.
b. The theory of portfolio choice predicts that portfolios with junk bonds are more
divers
Chapter 3
U.S. dollar deposits in foreign banks outside the U.S. or in foreign branches of U.S. banks are
called _.
a.
b.
c.
d.
outside dollars
Atlantic dollars
foreign dollars
Eurodollars
The time an
Chapter 7
Identify the cash flows available to an investor in stock.
a.
b.
c.
d.
Net income after taxes.
Dividends and capital gains.
Corporate profits.
Retained earnings.
Suppose that increases in th
Chapter 4
The present value of an expected future payment _ as the interest rate increases.
a.
b.
c.
d.
falls
rises
is unaffected
is constant
With an interest rate of 6 percent, the present value of $
post-trade SSTI and LIS thresholds for SFPs
determined not to have a liquid market if Test 1 is
passed EN 84 EN 4. Securitised derivatives Table 4.1
Securitised derivatives classes not having a liquid
Segmentation criterion 1 - underlying interest rate
or underlying interest rate future or FRA
Segmentation criterion 2 - term of the underlying
interest rate Segmentation criterion 3 - time to
maturit
time to maturity bucket of the swap defined as
follows: Maturity bucket 1: 0 < time to maturity 1
month Maturity bucket 2: 1 month < time to
maturity 3 months Maturity bucket 3: 3 months <
time to mat
determined not to have a liquid market as per
Articles 6 and 8(1)(b) if it does not meet one or all
of the following thresholds of the quantitative
liquidity criteria. For sub-classes determined to ha
criterion 2 - time to maturity bucket of the swap
defined as follows: Maturity bucket 1: 0 < time to
maturity 1 month Maturity bucket 2: 1 month <
time to maturity 3 months Maturity bucket 3: 3
months
classes as defined below EN 89 EN Average daily
notional amount (ADNA) [quantitative liquidity
criterion 1] Average daily number of trades
[quantitative liquidity criterion 2] Additional
qualitative l
considered to have a liquid market For the purpose
of the determination of the classes of financial
instruments considered not to have a liquid market
as per Articles 6 and 8(1)(b) the following
metho
swap are denominated Segmentation criterion 2 time to maturity bucket of the swap defined as
follows: Maturity bucket 1: 0 < time to maturity 1
month Maturity bucket 2: 1 month < time to
maturity 3 mo
currencies and where the cash flows of both legs
are determined by fixed interest rates EUR
50,000,000 1 0 Asset class - Interest Rate Derivatives
Sub-asset class Each sub-class shall be determined
no
swap where two parties exchange cash flows
denominated in different currencies and where the
cash flows of both legs are determined by floating
interest rates EUR 50,000,000 1 0 Fixed-to-Float
'multi
classes as defined below EN 91 EN Average daily
notional amount (ADNA) [quantitative liquidity
criterion 1] Average daily number of trades
[quantitative liquidity criterion 2] Additional
qualitative l
have a short-term Medium-term: the underlying
deliverable bond with a term between 4 and 8 years
shall be considered to have a medium-term Longterm: the underlying deliverable bond with a term
between
class - Interest Rate Derivatives any contract as
defined in Annex I, Section C(4) of Directive
2014/65/EU whose ultimate underlying is an
interest rate, a bond, a loan, any basket, portfolio or
index
criterion 1 - underlying bond or underlying bond
future/forward Segmentation criterion 2 - time to
maturity bucket of the option defined as follows:
Maturity bucket 1: 0 < time to maturity 3 months
Ma
Float 'single currency swaps' a swap or a
future/forward on a swap where two parties
exchange cash flows denominated denominated in
the same currency and the cash flows of one leg are
determined by a
market with respect to a specific time to maturity
bucket and the sub-class defined by the next time to
maturity bucket is determined not to have a liquid
market, the first back month contract is dete
liquid market as per Articles 6 and 8(1)(b), each subasset class shall be further segmented into subclasses as defined below EN 93 EN Average daily
notional amount (ADNA) [quantitative liquidity
crite
6: over 10 years Swaptions EUR 500,000,000 1 0
Asset class - Interest Rate Derivatives Sub-asset class
Each sub-class shall be determined not to have a
liquid market as per Articles 6 and 8(1)(b) if i
LIS post-trade Threshold value Threshold value
Threshold value Threshold value EUR 100,000 EUR
250,000 EUR 500,000 EUR 1,000,000 Asset class Structured Finance Products (SFPs) Pre-trade and
post-trade
OIS multi currency swap, futures/forwards on OIS
multi currency swap Segmentation criterion 2 notional currency defined as the currency in which
the notional amount of the option is denominated
Segmen
the Rune would dare to bring more than two of these items
together. After all, the escalation of the blades power is great,
and unless it fits a plan of some depth for the Rune, it is better
to hoard
distant people of Sers are the tritons, the deep-dwelling folk
who rarely interact with the other racesthat is, until recently.
Tritons have long been the guardians of the depths, keeping
many secrets
the Nine Towers. 71 916 DR (986 TS): Rise of Esroch/
Expansion of Asarem. The shalarin of the Fourth Passing and
children of other generations found a new kingdom within the
lower depths of Easting Re