Which one of the four proposals is (much) more true than the 3 others?
Interest rates on bank loans a) b) c) d) Represent the remuneration of the bank for the credit risk Are always variable Are the same for each client of a given bank Are determined by the market if there is enough competition
A financial future a) b) c) d) Is an option on the forward value of a financial instrument Is always settled by a real settlement of the underlying transaction Is a financial instrument economically similar to a forward transaction Is settled every 6 months
In order to perform its banking function property, when considering a loan a) A bank should analyse the purpose of the borrowing, the borrower and its capacity to repay b) A bank should earn at least o.5 % gross margin on any loan c) A bank should never make a loan to a company that cannot offer any collateral d) A bank should request the benefit of all the collateral available from the borrower
A trade bill or bill of exchange a) b) c) d) Is similar to an invoice, but legally less secure Cannot be discounted before its maturity Is not valid if not guaranteed by the central bank Is like a kind of promissory note, but it can only be written in a commercial transaction