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Forward Rate to Municipal Bonds

Total questions: 37

Worksheet time: 1hrs 14mins

Name
Class
Date
1.

What is the future rate where the hedger pays at present but receives the currencies in the future?

a)

Forward Rate

b)

Spot Rate

c)

Exchange Rate

d)

Interest Rate

2.

What is computed based on the Future Value with Additional Annuity table?

a)

Net Present Value

b)

Future Value of Sinking Fund (FVSF)

c)

Compound Interest

d)

Loan Amortization

3.

What is a legal agreement to buy and sell commodities at a specified strike price on a certain delivery date at an organized exchange?

a)

Futures Contract

b)

Options Contract

c)

Forward Rate Agreement

d)

Swap Agreement

4.

What is an intangible asset representing the excess amount paid by a company acquirer over the stockholders' equity or book value?

a)

Trademark

b)

Goodwill

c)

Brand Value

d)

Patent

5.

What is the process of floating an IPO and rights issues to the public?

a)

Underwriting

b)

Going Public

c)

Market Listing

d)

Secondary Offering

6.

What is a debt instrument issued by a government to raise funds for projects and infrastructure?

a)

Treasury Bill

b)

Corporate Bond

c)

Government Bond

d)

Convertible Bond

7.

Who are authorized to trade government securities once the award is granted by the BTr as a result of the auction resolution?

a)

Stock Brokers

b)

Government Securities Eligible Dealers (GSED)

c)

Central Bank Dealers

d)

Investment Bankers

8.

Who are the regulating institutions responsible for the success of bond issues?

a)

Stock Exchanges

b)

Private Agencies and Government

c)

Financial Advisors

d)

Capital Market Authorities

9.

What is a financial risk strategy launched to minimize losses from a financing and investing decision, involving the use of derivative securities like options and futures?

a)

Speculation

b)

Hedging

c)

Arbitrage

d)

Diversification

10.

What is a zero-coupon bond issued by a government unit to finance public infrastructure?

a)

Income Bond

b)

Treasury Bond

c)

Convertible Bond

d)

Corporate Bond

11.

What is the issuance of a company's stock to the public with the result of the company being listed at local and international stock exchanges?

a)

Rights Issue

b)

Initial Public Offering (IPO)

c)

Secondary Offering

d)

Share Buyback

12.

What is the primary process through which a private company first offers to sell shares to public investors on a stock exchange?

a)

Public Listing

b)

Initial Public Offering

c)

Stock Repurchase

d)

Direct Placement

13.

What are examples of intellectual properties like patents, copyrights, and trademarks?

a)

Tangibles

b)

Intangibles

c)

Equity Instruments

d)

Fixed Assets

14.

What are financial tools that help manage the risk of interest rate changes, like swapping fixed interest payments for variable ones?

a)

Futures Contracts

b)

Interest Rate Derivatives

c)

Equity Derivatives

d)

Commodity Swaps

15.

What is the floating rate debt that is not paid but exchanged with a fixed rate debt?

a)

Interest Rate Swap Pseudo-Refinancing

b)

Loan Repayment Swap

c)

Debt-to-Equity Swap

d)

Currency Swap

16.

What is the cost of borrowing money?

a)

Principal

b)

Interest

c)

Discount Rate

d)

Yield

17.

What represents the return of discounted future cash flows from a given investment at the present time?

a)

Net Present Value

b)

Internal Rate of Return (IRR)

c)

Profitability Index

d)

Payback Period

18.

What seeks to standardize accounting language, practices, and statement preparation?

a)

Generally Accepted Accounting Principles (GAAP)

b)

International Financial Reporting Standards (IFRS)

c)

Financial Accounting Standards Board (FASB)

d)

Securities and Exchange Commission (SEC)

19.

Which system has a lower contribution to the economy compared to the commercial banking system but plays a vital role in debt-related development financing?

a)

Retail Banking System

b)

Investment Banking System

c)

Central Banking System

d)

Cooperative Banking System

20.

What is a group of investment banks that underwrites capital market securities in the Philippines?

a)

Philippine Stock Exchange

b)

Investment Houses Association of the Philippines (IHAP)

c)

Bangko Sentral ng Pilipinas

d)

Securities and Exchange Commission

21.

What is a yardstick used to measure certain valuation elements like financial management analysis, capital structure, earnings prospective, and pricing evaluation?

a)

Return on Investment (ROI)

b)

Key Performance Index (KPI)

c)

Profitability Ratio

d)

Balance Scorecard

22.

What is the process of reducing the value of an asset in the lease agreement, based on historical cost, economic lifespan, and residual value?

a)

Depreciation

b)

Lease Amortization

c)

Loan Amortization

d)

Straight-Line Expense

23.

What is a contract where a lessee pays an amortization to a lessor with the option of owning the property at maturity?

a)

Mortgage Agreement

b)

Leasing

c)

Loan Agreement

d)

Rent-to-Own Contract

24.

Who is the party paying an amortization to the lessor with the option of owning a property at maturity?

a)

Debtor

b)

Lessee

c)

Tenant

d)

Borrower

25.

Who is the party, normally a financial institution, that receives the amortization from the lessee for a property it bridges finances for a certain period of time?

a)

Creditor

b)

Lessor

c)

Loan Officer

d)

Mortgagee

26.

What is an acquisition deal of a company financed by loan or bond financing, which is reflected on the company's balance sheet?

a)

Leveraged Buyout

b)

Equity Financing

c)

Asset Acquisition

d)

Debt Restructuring

27.

What are the short- and long-term obligations of a company, computed by deducting equity from the total assets of the company?

a)

Liabilities

b)

Current Assets

c)

Equity

d)

Reserves

28.

What is the goal of diversifying a credit portfolio?

a)

Risk Management

b)

Liquidity

c)

Profit Maximization

d)

Asset Diversification

29.

What is a company that has gone public and registered with the local or international stock exchange?

a)

Private Company

b)

Listed Company

c)

Limited Liability Company

d)

Partnership

30.

What is the inclusion of a company stock on the stock exchange's electronic board for trading on the secondary market?

a)

IPO

b)

Listing

c)

Delisting

d)

Stock Certification

31.

What is the annuity payment which consists of interest expense and periodical principal loan repayment within a certain agreed-upon loan period?

a)

Lease Amortization

b)

Loan Amortization

c)

Fixed Payment Plan

d)

Interest Expense

32.

What is the meeting place of buy and sell transactions in the stock market, as well as other organized option and futures markets?

a)

Auction

b)

Market

c)

Trading Platform

d)

Brokerage

33.

What is the ratio of the stock market price over the company's book value?

a)

Price-Earnings Ratio

b)

Market-to-Book Value

c)

Debt-to-Equity Ratio

d)

Net Asset Value

34.

What is the terminal date for the value of an asset, liability, or equity transaction, like a bond?

a)

Expiration Date

b)

Maturity Date

c)

Payment Due Date

d)

Valuation Date

35.

What is a bond collateralized by the fixed assets of the issuing company?

a)

Corporate Bond

b)

Mortgage Bond

c)

Convertible Bond

d)

Treasury Bond

36.

What measures the size of the contribution margin in comparison to the company's fixed costs?

a)

Operating Margin

b)

Multiple of Operating Leverage

c)

Cost-Volume-Profit Analysis

d)

Break-Even Ratio

37.

What are debt securities issued by state and local governments or entities they create, used to finance public projects?

a)

Treasury Bills

b)

Corporate Bonds

c)

Municipal Bonds

d)

Revenue Bonds