Financial Certified Examiner (CFE) CFE Dumps in PDF

Free Financial CFE Real Questions (page: 49)

The agreements under which the reporting entity purchases securities and simultaneously agrees to resell the same or substantially the same securities at a stated price on a specified date are called:

  1. Repurchase agreements
  2. Treasury bills
  3. Collateralized bills
  4. Revised agreements

Answer(s): A



The amount paid for the securities is reported as a short-term investment, and the difference between the amount paid and the amount at which the securities will be subsequently resold is reported as:

  1. mutual agreed upon income
  2. money market payment
  3. dollar-repurchase payment
  4. interest income

Answer(s): D



The intrinsic value of money, referred to as the real interest rate by economists.

  1. True
  2. False

Answer(s): A



Dollar repurchase agreements are commonly referred to as dollar roll transactions.

  1. True
  2. False

Answer(s): A



For the seller in a _agreement, a liability is recorded for the amount of proceeds of the sale and the sold mortgage-backed securities are not removed from the accounting records.

  1. investment income
  2. dollar reverse repurchase
  3. dollar-resale payment
  4. resale interest income

Answer(s): B



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