Chapter 11 - Chapter 11 International Financial Markets 1....

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Chapter 11 International Financial Markets 1. The Eurocurrency market consists of banks which accept deposits and make loans in foreign currencies . * A. outside the country of issue B. inside the country of issue C. in the home country D. in Europe only E. none of the above 2. Eurodollars are US dollars deposited in . A. New York B. Chicago * C. London D. San Francisco E. Detroit 3. Eurodollars can be created in . A. Europe B. Asia C. Latin America D. Africa * E. all of the above 4. Eurodollar deposits could expand indefinitely if . A. public and private depositors always keep their money in non-U.S. banks B. banks always keep their money in non-U.S. banks C. banks are able to find public and private borrowers in Eurodollars * D. all of the above E. none of the above 5. The Bank for International Settlement is a bank in that facilitates transactions among central banks. A. the United States * B. Switzerland C. Canada D. Germany E. Japan
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6. The Eurodollar market is probably the most efficient because there are no . A. reserve requirements B. interest ceilings on deposits C. FDIC (Federal Deposit Insurance Corporation) fees * D. all of the above E. none of the above 7. If the U.S. government imposes additional taxes on interest paid on US bank deposits, the likely effect of this regulation is to . * A. expand the Eurodollar market B. reduce the Eurodollar market C. have no impact on the size of the Eurodollar market D. increase U.S. bank deposits E. none of the above 8. Recent movement toward a highly integrated global financial system has caused bankers to develop three Cs of central banking. These three Cs are
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Chapter 11 - Chapter 11 International Financial Markets 1....

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