The rate of interest paid at which high-quality borrowers can borrow at lower rates in the Reoccurring markets is known as the rate. A) LABOR b) prime c) LIB d) LIBIDO Section: Roommate trends 13. 10 Historically, most Rebounds have been b) yen c) Euro d) pound Section: Rebounds/currency denomination denominated. A) U. S. 13. 11 The , which resembles the U. S. Commercial paper market, allows borrowers to issue their own short-term Erroneous. A) Rebound market b) European c) note issuance facility d) revolving underwriter facility Section: Note issuance facilities and Erroneous eve]: Easy 13. 2 Debt denominated in a foreign currency that is launched, priced and traded in Asia is referred to as a b) samurai c) Asian-tiger d) dragon bond. A) shogun Section: The Asian currency market MEDIUM (applied) 13. 13 Which one of the following is the MOST obvious example of the globalization Of financial markets? A) the creation Of the European Union b) the rise of the Roommates c) the end of the Soviet Union d) the Asian currency crisis of 1 997 Section: Globalization Level: Medium 13. 14 Suppose the French government imposes an interest rate ceiling on French bank deposits.
What is the likely effect Of this regulation? A) reduce Europeans interest rates b) raise Europeans interest rates c) reduce the U. S. Prime rate of interest d) raise the U. S. Prime rate of interest Section: Relationship between domestic and reoccurring money markets 13. 15 If the current 1 80-day inter-bank Arteriolar rate is 15% (all rates are stated on an annulled basis) and next period’s LABOR is 13%, then a Reoccurring loan priced at LABOR plus 1% will cost a) this period and 16% next period b) 15% this period and 14% next period c) 16% this period and 14% next period ) 15% this period and 15% next period 13. 6 Suppose that the current go-day London interbrain offer rate is 11% (all rates are stated on an annulled basis). If next period’s LABOR is 10. 5%, then a Arteriolar rate priced at LABOR plus 1% will cost a) 12% this period and 1 1. 5% next period b) 1 1% this period and 10. 5% next period c) 12% this period and 12% next period d) 11% this period and 1 1% next period 13. 17 One reason for the multicultural clause in the Euro markets is to avoid a) government actions to block funds b) local traders from arbitraging away profits c) exchange rate risk ) political instability Section: Multicultural clause DIFFICULT (applied) 13. 8 Suppose the U. S. Government imposes added taxes on interest paid on American bank deposits. What is the likely effect of this regulation? A) raise Arteriolar interest rates b) reduce Arteriolar interest rates c) have no effect d) capital flight Level: Difficult 13. 19 Which one of the following has NOT led to a closer relationship between interest rates in national and Reoccurring money markets? A) tax treaties that reduce the incidence of double taxation on foreign-source income b) elimination of currency controls ) reduced cost of transatlantic telecommunications d) increased government regulation of U.
S. Interest rates Section: Rebounds versus Reoccurring loans 13. 20 Which one Of the following does NOT cause Reoccurring spreads to be narrower than in domestic money markets? A) Europeans don’t have to maintain reserves on Arteriolar deposits b) Europeans face lower regulatory expenses c) national banks are often required to lend money to certain borrowers at concessionary rates d) U. S. Federal Reserve bank regulations to cap interest rates charged on loans in the U. S.