International Finance Exam 1

True

(True/False) NDFs are traded and settled outside the country of the subject currency, and therefore are beyond the control of the country's government

False

(True/False) Swap and forward transactions account for an insignificant portion of the foreign exchange market.

False

(True/False) The primary motive of foreign exchange activities by most central banks is profit.

True

(True/False) With several exceptions, most interbank quotes are stated in European terms (meaning foreign currency unit per U.S. dollar).

B) Forward

A ________ transaction in the foreign exchange market requires delivery of foreign exchange at some future date. A) spot B) forward C) swap D) currency

D) spot against forward""

A common type of swap transaction in the foreign exchange market is the ________ where the dealer buys the currency in the spot market and sells the same amount back to the same bank in the forward market. A) forward against spot"" B) forspot"" C) repurchase agreement"" D) spot against forward""

C.bears direct foreign exchange risk.

A firm in the International Trade Phase of​ Globalization: A.makes all foreign payments in foreign currency units and all foreign receipts in domestic currency units. B.receives all foreign receipts in foreign currency units and makes all foreign payments in domestic currency units. C.bears direct foreign exchange risk. D.none of the above

A.selling pounds​ forward; buying dollars forward

A forward contract to deliver British pounds for U.S. dollars could be described either as​ ________ or​ ________. A.selling pounds​ forward; buying dollars forward B.selling dollars​ forward; buying pounds forward C.selling pounds​ forward; selling dollars forward D.buying dollars​ forward; buying pounds forward

D) pegged exchange rate with the United States

A small economy country whose GDP is heavily dependent on trade with the United States could use​ a(n) ________ exchange rate regime to minimize the risk to their economy that could arise due to unfavorable changes in the exchange rate. A) pegged exchange rate with the Euro B) managed float C) independent floating D) pegged exchange rate with the United States

American college students on the USA-Canadian border have discovered they can buy Canadian beer for less money than what they pay in the states. Recently Jerry paid C$5.50 for a six-pack of beer while he was in Canada while his roommate, Ben, paid $5.75 for a six-pack of the same beer in the states. If the current exchange rate is $1.0335/C$, who paid less and why? A) Jerry paid less because his purchase cost 5.68 in USD. B) Jerry paid less because his purchase cost 5.32 in USD. C) Ben paid less because his purchase cost C$5.26. D) Ben and Jerry actually paid the same amount for their beer. Markets are efficient!

A. Jerry paid less because his purchase cost 5.68 in USD.

C. forward.

A​ ________ transaction in the foreign exchange market requires delivery of foreign exchange at some future date. A) spot B) swap C) forward D) currency

BRIC" is a term coined in 2001 to refer to a group of countries at about the same stage of advanced economic development. The BRIC countries are" A) Belgium, Romania, Italy, and Canada. B) Brazil, Russia, India, and China. C) Britain, Romania, Israel, and Colombia. D) Brazil, Russia, Italy, and Chile.

B. Brazil, Russia, India, and China

The ________ includes all international economic transactions with income or payment flows occurring within the year. A) capital account B) current account C) financial account D) IMF account

B. Current Account

The euro was launched in January 1999 with an official initial value against the dollar of $1.16/€. As of January 2011 the currency exchange rate was $1.40/€. Thus, over this time period the euro has ________ against the dollar by a total of ________. A) appreciated; 82.86% B) appreciated; 20.69% C) depreciated; 82.86% D) depreciated; 20.69%

B. appreciated; 20.69%

The J-curve adjustment path for trade balance adjustments assumes that export products are predominantly priced in the ________ currency and that import products are predominantly priced in the ________ currency. A) domestic; domestic B) domestic; foreign C) foreign; foreign D) foreign; domestic

B. domestic; foreign

Of the following, which was NOT mentioned by the authors as an increase in the demands of financial management services due to increased globalization by the firm? A) evaluation of the credit quality of foreign buyers and sellers B) foreign consumer method of payment preferences C) credit risk management D) evaluation of foreign exchange risk

B. foreign consumer method of payment preferences

Special Drawing Right or SDR is A) global reserve asset created by IMF to replace the national currencies. B) international reserve asset created by IMF to supplement existing foreign exchange reserves. C) weighted average of four major currencies plus the currencies of the BRICs countries. D) none of the above

B. international reserve asset created by IMF to supplement existing foreign exchange reserves.

The two major concerns about foreign direct investment are A) national defense and taxes. B) who controls the assets and who receives the profits. C) who receives the profits and taxes. D) who pays the taxes and who receives the taxes.

B. who controls the assets and who receives the profits

False

Because countries have different financial regulations and​ customs, it is common for MNEs to apply their domestic rules and regulations when doing financial business in a foreign country. True False

False

Bretton Woods required less in the way of cooperation among countries than did the gold standard.

Which of the following is NOT an item to be considered in BOP calculations? A) A foreign resident purchases a U.S. Treasury Bill. B) A U.S.-based firm manages the development of an oil field in Kazakhstan. C) A consumer buys a VCR made in Korea from a Wal-Mart store. D) A U.S. citizen living in Minnesota travels to Winnipeg, Canada and buys a case of LaBatt's Canadian beer

C. A consumer buys a VCR made in Korea from a Wal-Mart store

According to the authors, the following types of transactions dominate the balance of payments A) the exchange of guns for butter. B) the exchange of stocks and bonds. C) the exchange of goods and services. D) the exchange of real and financial assets.

D. The exchange of real and financial assets

LIBOR is A) insignificant interest rate for global financial markets' operation. B) Madrid and Paris Interbank Offered Rate. C) published by British Bankers Association (BBA) once per year. D) adjusted average of estimated borrowing rates in the unsecured interbank market.

D. adjusted average of estimated borrowing rates in the unsecured interbank market

Under a fixed exchange rate regime, the government of the country is officially responsible for A) intervention in the foreign exchange markets using gold and reserves. B) setting the fixed/parity exchange rate. C) maintaining the fixed/parity exchange rate. D) all of the above.

D. all of the above

Which of the following firms are NOT considered to be multinational enterprises (MNEs) even if they have operations in more than one country? A) for-profit companies B) non-for-profit organizations C) non-government organizations (NGOs) D) all of the above may be considered MNEs

D. all of the above may be considered MNEs

Over the last several years, the United States has run a ________ in the goods trade balance and a ________ in the services trade balance. A) surplus; deficit B) surplus; surplus C) deficit; deficit D) deficit; surplus

D. deficit; surplus

The J-curve adjustment path for trade balance adjustments assumes that ________ products are predominantly priced in the domestic currency and that ________ products are predominantly priced in the foreign currency A) import; import B) import; export C) export; export D) export; import

D. export; import

When categorizing investments for the financial account component of the balance of payments the ________ is an investment where the investor has no control whereas the ________ is an investment where the investor has control over the asset. A) direct investment; portfolio investment B) direct investment; indirect investment C) portfolio investment; indirect investment D) portfolio investment; direct investment

D. portfolio investment; direct investment

A) $3,200 billion; day

Daily trading volume in the foreign exchange market was about ________ per ________ in 2007 A) $3,200 billion; month B) $1,000 billion; month C) $3,200 billion; day D) $1,000 billion; day

D) all of the above.

Dealers sometimes use brokers in the foreign exchange market because the dealers desire A) speed. B) accuracy. C) to remain anonymous. D) all of the above.

(True/False) Because current and financial/capital account balances use double-entry book keeping it is unusual to find serious discrepancies in the debits and credits.

False?

True

For at least the last decade, the United States has consistently run a surplus in services trade income. True False

B) ¥114.96/euro

Given the following exchange rates, which of the following choices represents a potentially profitable intermarket arbitrage opportunity? ¥129.87/$ euro 1.1226/$ euro 0.00864/¥ A) ¥115.69/euro B) ¥114.96/euro C) $0.8908/euro D) $0.0077/¥

C) undertake both of the activities identified in choices A and B.

If China wished to reduce their accumulation of foreign exchange reserves they could: A) allow their currency, the yuan, to float freely in the market place. B) reduce their current account surplus by importing more goods than they export. C) undertake both of the activities identified in choices A and B. D) dig a big hole and bury the reserves.

A) £0.699/$; £0.699/$

If the direct quote for a U.S. investor for British pounds is $1.43/£, then the indirect quote for the U.S. investor would be ________ and the direct quote for the British investor would be ________. A) £0.699/$; £0.699/$ B) $0.699/£; £0.699/$ C) £1.43/£; £0.699/$ D) £0.699/$; $1.43/£

True

The Eurocurrency market continues to thrive because it is a large international money market relatively free from governmental regulation and interference. Recent events may lead to greater regulation. True False

C) appreciated; 2.24%

The U.S. dollar suddenly changes in value against the euro moving from an exchange rate of $0.8909/euro to $0.8709/euro. Thus, the dollar has ________ by ________. A) appreciated; 2.30% B) depreciated; 2.30% C) appreciated; 2.24% D) depreciated; 2.24%

B) current account

The ________ includes all international economic transactions with income or payment flows occurring within the year. A) capital account B) current account C) financial account D) IMF account

(True/False) All exchange rate regimes must deal with the trade-off between rules and discretion.

True

(True/False) Although the world is a long way from the classical trade model, the general principle of comparative advantage is still valid.

True

(True/False) Eurocurrency deposits are an efficient and convenient money market device for holding excess corporate liquidity.

True

(True/False) If exchange rates were fixed, investors and traders would be relatively certain about the current and near future exchange value of each currency.

True

(True/False) In general, a country's exports decrease as foreign income decreases.

True

(True/False) International debt security purchases and sales are defined as portfolio investments for financial account purposes because by definition debt securities do not provide the buyer with ownership or control.

True

(True/False) The immediate impact on the balance of trade (BOT) for a country in deficit when there is an immediate devaluation of its currency is likely to be an even larger BOT deficit than prior to devaluation.

True

(True/False) Typically, a firm in its domestic stage of globalization has all financial transactions in its domestic currency.

True

False

True/False When a currency is devalued the immediate impact may be an increase in a country's trade deficit. However, this situation tends to correct itself in 2 to 5 weeks.

True

When the cross rate for currencies offered by two banks differs from the exchange rate offered by a third​ bank, a triangular arbitrage opportunity exists. True False

B.Governments attempt to achieve full employment.

Which of the following is NOT a reason governments interfere with comparative​ advantage? A.Governments promote economic development. B.Governments attempt to achieve full employment. C.national selfminus−sufficiency in defenseminus−related industries D.All are reasons governments interfere with comparative advantage.

​C. culture, history, and institutions

Which of the following is NOT always understood by MNE​ management? A.political risk B.financial instruments C.​culture, history, and institutions D.foreign exchange risk

D.All are attributes of an ideal currency.

Which of the following is NOT an attribute of the​ "ideal" currency? A.full financial integration B.exchange rate stability C.monetary independence D.All are attributes of an ideal currency.

C) The balance of trade gets worse.

Which of the following is NOT likely to occur in the quantity adjustment phase of the J-Curve adjustment path? A) Imports become relatively more expensive. B) Exports become relatively less expensive. C) The balance of trade gets worse. D) All of the above are true.

C) NDFs can only be traded by central banks.

Which of the following is NOT true regarding nondeliverable forward (NDF) contracts? A) NDFs are used primarily for emerging market currencies. B) Pricing of NDFs reflects basic interest rate differentials plus an additional premium charged for dollar settlement. C) NDFs can only be traded by central banks. D) All of the above are true

D.All of the above are true.

Which of the following is NOT true regarding the market for foreign​ exchange? A.The rate of exchange is determined in the market. B.Foreign exchange transactions are physically completed in the foreign exchange market. C.The market provides the physical and institutional structure through which the money of one country is exchanged for another. D.All of the above are true.

D.all of the above

Which of the following may be participants in the foreign exchange​ markets? A.central banks and treasuries B.bank and nonbank foreign exchange dealers C.speculators and arbitrageurs D.all of the above

D) All are example of BOP transactions.

Which of the following would NOT be considered a typical BOP transaction? A) Toyota U.S.A. is a U.S. distributor of automobiles manufactured in Japan by its parent company. B) The U.S. subsidiary of European financial giant, Credit Suisse, pays dividends to its parent in Zurich. C) A U.S. tourist purchases gifts at a museum in London. D) All are example of BOP transactions.

A) London, New York, and Tokyo

While trading in foreign exchange takes place worldwide, the major currency trading centers are located in A) London, New York, and Tokyo. B) New York, Zurich, and Bahrain. C) Paris, Frankfurt, and London. D) Los Angeles, New York, and London

B.Strip transactions

​________ is NOT one of the three categories reported for foreign exchange. A.Spot transactions B.Strip transactions C.Swap transactions D.Futures transactions

C) the higher prices of foreign goods spurs domestic competitors to cut prices.

Imports have the potential to lower a country's inflation rate because of each of the following EXCEPT: A) the import of lower priced goods limits what domestic competitors can charge for goods. B) the import of lower priced services limits what domestic competitors can charge for services. C) the higher prices of foreign goods spurs domestic competitors to cut prices. D) all of the above

B) the last two digits of the typical forward rate.

In a standard forward terminology, Pips" stands for" A) vulture profit seekers. B) the last two digits of the typical forward rate. C) a difference between the swap and forward rate. D) a difference between the swap and the spot rate.

C) speculators; arbitragers

In the foreign exchange market, ________ seek all of their profit from exchange rate changes while ________ seek to profit from simultaneous exchange rate differences in different markets. A) wholesalers; retailers B) central banks; treasuries C) speculators; arbitragers D) dealers; brokers

True

Regime structures like the gold standard required no cooperative policies among​ countries, only the assurance that all would abide by the​ "rules of the​ game." True False

True

Several of the​ world's major currency exchange rates follow a specific quotation convention that is the result of tradition and history. The exchange rate between the U.S. dollar and the British pound is always quoted as​ "dollars per​ pound." True False

Which of the following is NOT a required convergence criteria to become a full member of the European Economic and Monetary Union (EMU)? A) National birthrates must be at 2.0 or lower per person. B) The fiscal deficit should be no more than 3% of GDP. C) Nominal inflation should be no more than 1.5% above the average inflation rate for the three members with the lowest inflation rates in the previous year. D) Government debt should be no more than 60% of GDP.

A. National birthrates must be at 2.0 or lower per person

A country experiencing a serious BOP ________ is more likely to ________ exports than otherwise. A) surplus; contract B) deficit; contract C) deficit; expand D) none of the above

A. Surplus; Contract

The balance of payments is most like a(an) A) cash flow statement. B) balance sheet. C) income statement. D) proxy statement.

A. cash flow statement

The IMFs exchange rate regime classification identifies ________ as the most rigidly fixed, and ________ as the least fixed. A) exchange arrangements with no separate legal tender; independent floating B) crawling pegs; managed float C) currency board arrangements; independent floating D) pegged exchange rates within horizontal bands; exchange rates within crawling pegs

A. exchange arrangements with no separate legal tender; independent floating

The subcategory that typically dominates the current account is A) goods (merchandise) trade. B) services trade. C) income trade. D) transfer accounts.

A. goods (merchandise) trade

The authors describe the multinational phase of globalization for a firm as one characterized by the A) ownership of assets and enterprises in foreign countries. B) potential for international competitors or suppliers even though all accounts are with domestic firms and are denominated in dollars. C) imports from foreign suppliers and exports to foreign buyers. D) requirement that all employees be multilingual.

A. ownership of assets and enterprises in foreign countries

The theory that suggests specialization by country can increase worldwide production is A) the theory of comparative advantage. B) the theory of foreign direct investment. C) the international Fisher effect. D) the theory of working capital management.

A. the theory of comparative advantage

C) foreign exchange transaction

A/An ________ is an agreement between a buyer and seller that a fixed amount of one currency will be delivered at a specified rate for some other currency. A) Eurodollar transaction B) import/export exchange C) foreign exchange transaction D) interbank market transaction

D) indirect; direct

A/an ________ quote in the United States would be foreign units per dollar, while a/an ________ quote would be in dollars per foreign currency unit. A) direct; direct B) direct; indirect C) indirect; indirect D) indirect; direct

False

According to the terminology associated with changes in currency​ values, depreciation is a case when a​ currency's value relative to other currencies is changed by a government.

D.soft peg.

Among IMF member countries since​ 2010, the dominating exchange rate regime has​ been: A.hard peg. B.residual agreement. C.floating arrangements. D.soft peg.

Based on the premise that, other things equal, countries would prefer a fixed exchange rate, which of the following statements is NOT true? A) Fixed rates provide stability in international prices for the conduct of trade. B) Fixed exchange rate regimes necessitate that central banks maintain large quantities of international reserves for use in the occasional defense of the fixed rate. C) Fixed rates are inherently inflationary in that they require the country to follow loose monetary and fiscal policies. D) Stable prices aid in the growth of international trade and lessen exchange rate risks for businesses.

C. Fixed rates are inherently inflationary in that they require the country to follow loose monetary and fiscal policies.

According to the authors, what is the single most important mandate of the European Central Bank? A) Promote international trade for countries within the European Union. B) Price, in euros, all products for sale in the European Union. C) Promote price stability within the European Union. D) Establish an EMU trade surplus with the United States.

C. Promote price stability within the European Union

In 2001 the United States posted a current account deficit of -$393 billion. The bulk of the negative value came from A) a net transfer deficit. B) an income balance deficit. C) a goods trade deficit. D) an income trade deficit.

C. a goods trade deficit

The financial account consists COMPLETELY of which three components? A) stock investment, bond investment, and mutual fund investment B) direct investment, stock investment, and bond investment C) direct investment, portfolio investment, and other asset investment D) mutual fund investment, portfolio investment, and stock investment

C. direct investment, portfolio investment, and other asset investment

The role of official reserves is ________ under a ________ exchange rate regime. A) enhanced; floating B) diminished; fixed C) enhanced; fixed D) None of the above apply.

C. enhanced; fixed

True

Comparative advantage is one of the underlying principles driving the growth of global business. True False

According to the authors, one of the concerns for Peoples Republic of China driving restrictions on its capital flows is that A) RMB can appreciate to an extent of eroding PRC's export competitiveness. B) PRC can face rapid capital flight of Chinese Savings in search of high yielding returns. C) growing unease over the ability of the US dollar and the Euro to maintain value over time. D) All of the above

D. All of the above

Balance of payment (BOP) data may be important for any of the following reasons A) BOP data helps to forecast a country's market potential, especially in the short run. B) The BOP is an important indicator of a country's foreign exchange rate. C) Changes in a country's BOP may signal a change in controls over payment of dividends and interest. D) All of the above.

D. All of the above

Which of the following is a way in which the euro affects markets? A) Countries within the Euro zone enjoy cheaper transaction costs. B) Currency risks and costs related to exchange rate uncertainty are reduced. C) Consumers and business enjoy price transparency and increased price-based competition. D) All of the above.

D. All of the above

Which of the following does NOT represent a possible mechanism by which capital can be moved from country to country? A) transfers via the usual international payments mechanism such as regular bank transfers B) transfers via a physical bearer such as smuggling C) the transfer of cash into collectibles D) All of the above are mechanisms for moving capital from country to country.

D. All of the above are mechanisms for moving capital from country to country

Which of these issues must be addressed by domestic financial managers but may be ignored by international financial managers? A) capital budgeting decisions B) capital structure decisions C) working capital management decisions D) All of the above must also be addressed by international financial managers.

D. All of the above must also be addressed by international financial managers

Which of the following groups of countries have replaced their individual currencies with the Euro? A) France, Germany, and the United Kingdom B) Sweden, Denmark, and Greece C) The United Kingdom, The Netherlands, and Austria D) Germany, The Netherlands, and Italy

D. Germany, The Netherlands, and Italy

(True/False) Almost every nation today (over 90%) has a floating or perhaps a managed floating currency for the purposes of international currency exchange.

False

(True/False) Based on the premise that, other things equal, countries would prefer a fixed exchange rate: Variable rates provide stability in international prices for the conduct of trade.

False

(True/False) Since adopting the euro, all member nations have realized a significant reduction in unemployment rates.

False

(True/False) The Euro currency is fixed against other currencies on the international currency exchange markets, but allows member country currencies to float against each other.

False

(True/False) The global recession of 2009/2010 saw the major global economic players (USA, China, and Europe) each choose the same international currency goals from the impossible trinity. Meaning each felt an independent monetary policy was the most important goal followed by free movement of capital, and third, a policy of free floating currencies.

False

(True/False) The use of EURO is obligatory to member countries of the European Union.

False

(True/False) Today, the United States has been ejected from the International Monetary Fund for refusal to pay annual dues.

False

A) short term interest rate differentials

Long-term capital flows reflect the following factors EXCEPT: A) short term interest rate differentials B) fundamental economic expectations C) growth prospects D) perceptions of political stability

B) pounds and euros.

Major exceptions to using European terms in foreign exchange include A) trading yen and euros. B) pounds and euros. C) Mexican pesos and euros. D) all of the above.

B.European​ terms; American terms

Most foreign exchange transactions are through the U.S. dollar. If the transaction is expressed as the foreign currency per dollar this known as​ ________ whereas​ ________ are expressed as dollars per foreign unit. A.European​ terms; indirect B.European​ terms; American terms C.American​ terms; direct D.American​ terms; European terms

True

Multinational enterprises​ (MNEs) are​ firms, both forminus−profit companies and notminus−forminus−profit ​organizations, that have operations in more than one​ country, and conduct their business through foreign​ subsidiaries, branches, or joint ventures with host country firms. True False

D) Each of the above is part of the J-Curve adjustment path.

Of the following, which is NOT a part of J-Curve adjustment path? A) the currency contract period B) the exchange rate pass-through period C) the quantity adjustment period D) Each of the above is part of the J-Curve adjustment path.

C.full financial integration and monetary independence

The authors discuss the concept of the​ "Impossible Trinity" or the inability to achieve simultaneously the goals of exchange rate​ stability, full financial​ integration, and monetary independence. If a country chooses to have a pure float exchange rate​ regime, which two of the three goals is a country most able to​ achieve? A.monetary independence and exchange rate stability B.exchange rate stability and full financial integration C.full financial integration and monetary independence D.A country cannot attain any of the exchange rate goals with a pure float exchange rate regime.

C) interbank and client markets

The authors identify two tiers of foreign exchange markets A) bank and nonbank foreign exchange B) commercial and investment transactions C) interbank and client markets D) client and retail market

C) records all international transactions for a country over a period of time.

The balance of payments: A) determines the eligibility of countries for IMF aid. B) adds up the value of all assets and liabilities of a country on a specific date. C) records all international transactions for a country over a period of time. D) all of the above

B.agreed to use a single currency ​(exchange rate stability​), allow the free movement of capital in and out of their economies ​(financial integration​), but give up individual control of their own money supply ​(monetary independence​).

The countries that use the euro as their currency​ have: A.agreed to use a single currency ​(exchange rate stability​), allow individual control of their own money supply ​(monetary independence​), but give up the free movement of capital in and out of their economies ​(financial integration​). B.agreed to use a single currency ​(exchange rate stability​), allow the free movement of capital in and out of their economies ​(financial integration​), but give up individual control of their own money supply ​(monetary independence​). C.gained control over their own money supply ​(monetary independence​), allowed the free movement of capital in and out of their economies ​(financial integration​), but give up exchange rate stability. D.none of the above

True

The members of the EU do have relative freedom to set their own fiscal policieslong dash—government ​spending, taxation, and the creation of government surpluses or deficits. They are expected to keep deficit spending within limits.

B.World War II.

The modern eurocurrency market was born shortly​ after: A.Bosnian War. B.World War II. C.Korean War. D.World War I.

D.Bretton Woods Agreement.

The post WWII international monetary agreement that was developed in 1944 is known as​ the: A.United Nations. B.League of Nations. C.Yalta Agreement. D.Bretton Woods Agreement.

A.corporate insiders and rulers of sovereign states

The twin agency problems limiting financial globalization are caused by these two groups acting in their own selfminus−interests rather than the interests of the firm. A.corporate insiders and rulers of sovereign states B.attorneys and unsavory customs officials C.rulers of sovereign states and unsavory customs officials D.corporate insiders and attorneys

A.foreign exchange market

The​ ________ is the mechanism by which participants transfer purchasing power between​ countries, obtain or provide credit for international trade​ transactions, and minimize exposure to the risks of exchange rate changes. A.foreign exchange market B.federal open market C.LIBOR D.futures market

A.dollarization

You have been hired as a consultant to the central bank for a country that has for many years suffered from repeated currency crises and depends heavily on the U.S. financial and product markets. Which of the following policies would have the greatest effectiveness for reducing currency volatility of the client country with the United​ States? A.dollarization B.an exchange rate pegged to the U.S. dollar C.an internationally floating exchange rate D.an exchange rate with a fixed price per ounce of gold

A) Speculators and arbitragers

________ seek to profit from trading in the market itself rather than having the foreign exchange transaction being incidental to the execution of a commercial or investment transaction. A) Speculators and arbitragers B) Foreign exchange brokers C) Central banks D) Treasuries