Chap021

Chap021 - Chapter 21 - International Financial Markets and...

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Chapter 21 - International Financial Markets and Chapter 21 International Financial Markets and Multiple Choice Questions 1. If a French citizen places $100,000 in an Italian bank and an Italian citizen places $40,000 in a French bank, "international bank lending" has increased by __________. a. $40,000 b. $60,000 c. $100,000 D . $140,000 2. If a French citizen places $100,000 in an Italian bank and an Italian citizen places $40,000 in a French bank, "net international bank lending" increased by __________. a. $40,000 B . $60,000 c. $100,000 d. $140,000 3. Which one of the following is NOT a component of international bank lending? a. Domestic bank loans in domestic currency to nonresidents b. Domestic bank loans in foreign currency to domestic residents C . Domestic bank loans in domestic currency to a multinational corporation located in the domestic country d. Domestic bank loans in foreign currency to nonresidents 4. Which one of the following gives rise to a new eurocurrency deposit? a. A U.S. exporter receives payment from a U.K. importer in U.S. dollars drawn on a New York bank and places dollars in a London bank b. A London bank loans out 90 percent of a eurodollar deposit to a firm which then deposits the eurodollars in a French bank account (in dollars) c. A French businessman opens up a bank account in Zurich, denominated in French francs D . All of the above 21-1
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This note was uploaded on 11/27/2009 for the course ECON 421 taught by Professor Macphee,c during the Spring '08 term at UNL.

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Chap021 - Chapter 21 - International Financial Markets and...

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