1.Treasury bills are money market instruments that can be bought or sold at a discount or premium 2. Withholding taxes for treasury bills should be added to the purchase price 3. In commercial pricing, the final buying rate for the base currency should be lower than the bid rate in the inter-bank market to make a profit 4. When base currency appreciates, you will need less of a terms currency to buy 1 unit of base currency 5. Fixed Rate Treasury Notes (FXTN) provide coupon semi-annually. These securities have maturities longer than treasury bills 6. A peso liquidity trader lends at the highest bid rate to maximize profit and borrows at the lowest offer rate to minimize cost 8. If one of the mandates of the central bank is to manage inflation, then the BSP may cut rates if inflation is too low 10. A quoting bank buys the commodity/base currency at the BID RATE 11. In commercial pricing, a bank is a quoting party to the client at the same time a price taker from the inter-bank market 12. Treasury makes money on trading by taking advantage of the movements in FX rates. A long USD position means you are buying USD against another currency, with the expectation or view that the value of the commodity/base currency will eventually rise 13. Unlike time deposits, government securities can be pre-terminated 14. Cash in vault is an eligible form of compliance on reserves against deposits 15. When USD/JPY quote changes from 0.85 to 0.77, then the Yen depreciated against the dollar.
TRUE OR FALSE
1.Treasury bills are
2. Withholding taxes for treasury bills should be added to the purchase price
3. In commercial pricing, the final buying rate for the base currency should be lower than the bid rate in the inter-bank market to make a profit
4. When base currency appreciates, you will need less of a terms currency to buy 1 unit of base currency
5. Fixed Rate Treasury Notes (FXTN) provide coupon semi-annually. These securities have maturities longer than treasury bills
6. A peso liquidity trader lends at the highest bid rate to maximize profit and borrows at the lowest offer rate to minimize cost
8. If one of the mandates of the central bank is to manage inflation, then the BSP may cut rates if inflation is too low
10. A quoting bank buys the commodity/base currency at the BID RATE
11. In commercial pricing, a bank is a quoting party to the client at the same time a price taker from the inter-bank market
12. Treasury makes money on trading by taking advantage of the movements in FX rates. A long USD position means you are buying USD against another currency, with the expectation or view that the value of the commodity/base currency will eventually rise
13. Unlike time deposits, government securities can be pre-terminated
14. Cash in vault is an eligible form of compliance on reserves against deposits
15. When USD/JPY quote changes from 0.85 to 0.77, then the Yen
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