Please answer all questions. These are mcq questions. I only need answers. If you didn't answer completely, I will not just give negative rating but ensure that you are removed off the platform.

The U.S. bookbuilding method of underwriting is used in the Euromarket but with some important differences:

The market does not require any waiting period while registration procedures are completed

The lead manager is unable to rely upon the pre-pricing order book as much as in the United States

It is more difficult to maintain a fixed offering price during the underwriting period, as some underwriters will sell their unsold shares in the interdealer market

None of the above

All of the above

Issuers use the Euro-equity market because:

They want to tap a different investor base

They want to tap a larger investor base

Their domestic markets may be insufficient for their needs

They want to avoid domestic regulations and expenses

All of the above

The world equity markets are not nearly so well integrated as the debt markets because:

Debt issues are commodities defined by quality, maturity, and the yield curve

Swap markets permit arbitrage activity that eliminates price differences for the same commodity in other markets

Equities are different because each stock is different

A, B and C

A and B

Issuers may tap equity markets in other countries through ________________ to supplement domestic investor interest

An international tranche

A consensus agreement

An underwritten agreement

B and C

A and B

From the issuers point of view, the negatives associated with the U.S. underwriting procedures are:

The market risk stays with the seller of the shares while the issue is prepared for the market

The result of an underwriting is not assured and the seller must rely on the underwriters best efforts in distributing the shares

Underwriting procedures are designed to obtain the highest price for the seller of the securities

A and B

B and C

A Eurobond is:

Not necessarily issued in euros

Not necessarily issued in Europe

Issued by the European Central Bank

Held mostly by foreign banks operating in Europe

A and B

When foreigners issue yen-denominated bonds registered with the Japanese Ministry of Finance they are called:

Imperial bonds

Tokyo bonds

Samurai bonds

Foreign bonds

Asian bonds

The Eurobond market is:

A very traditional market

Highly regulated

Mostly for European companies

Over 100 years old

Highly innovative

Eurobonds and foreign bonds together are referred to as:

International bonds

Global bonds

Worldwide bonds

Flexible bonds

Transfer bonds

The Eurobond market is:

Virtually unregulated

Subject to self-imposed standards of practice

Listed on the London and Luxembourg stock exchange

All of the above

A and C

The risks of derivate include:

Counterparty, risk, liquidity risk, market risk

Operational risk, settlement risk, systemic risk

Unsystematic risk, operational risk, settlement risk

A and B

A and C

Currency swaps:

Involve only the contractual exchange of interest payment obligations

Are mutual obligations to exchange principal and interest payment obligations

Involve only the exchange of principal obligations

Are always exercised on the first day of the month

Are always exercised on the last day of the month

Credit default swaps (CDSs) are essentially:

Fixed rate obligations

Floating rate obligations

Insurance policies

Forward rate agreements

All of the above

Banks use swaps:

To lower their cost of funds, improve lending profits, and manage funding gaps

For swapping opportunities from their loan book

To satisfy requirements of clients

All of the above

None of the above

Competitors in the market for swaps and other derivatives include:

Banks and investment banks

Finance companies and insurance companies

Dealers from the U.S., U.K., continental Europe, and Asia

A and C

A, B and C