Question: The answer bold is the wrong one. Can you show the correct one and possibly provide why if you have time? Which loan in the

The answer bold is the wrong one. Can you show the correct one and possibly provide why if you have time?

Which loan in the international money market might have the longest maturity?

Eurodollar futures contract

Euronots

Eurobonds

Eurocredits

Eurocommercial papers

2. Which market is the credit market of U.S. dollars?

Fed funds market

Equity market

Eurodollar market

Asian currency market

Bond market

3. All the following except ___ are characteristics of bonds with warrants.

must be sold at expiration

offer an option to buy a stated number of common shares

have no voting rights

become worthless at expiration unless the price of common stock exceeds exercise price

pay no dividends

4. Which of the following statement is Wrong?

Dollars used within the United Stated are regulated by the FDIC

Eurodollar deposits pay higher interest rates than deposits in US

Eurodollar deposits have higher volatility and are riskier than deposits in US

Dollars held outside the United Stated are regulated by the FDIC

There are two markets of U.S. dollars.

5.Brady bonds include all provisions except ___.

compel debtor to purchase zero coupon US treasury bonds

these bonds are made marketable

extend debt maturities by 25 to 30 years

convert bonds to stocks at prevailing market price

an interest rate of 6.5% is applicable

6. Why does the interbank market exist?

Because the interbank market helps domestic banks to access international financial markets

Because banks want to make a profit in the interbank market

Because the demand for Eurodollars is higher than the demand for dollars in the US.

Because some banks have surplus of Eurodollars, and some banks have deficit of Eurodollars, and interbank loans move surplus of money to feed the deficit.

Because the supply of Eurodollars is lower than the supply of dollars in the US.

7. The functions of the money market do not include _

Central bank can perform its policy-making function through the money market

It provides financing to local and international traders

It allows corporations to issue stocks to raise funds.

It allows business to obtain short-term loans to finance their working capital needs

It provides commercial banks with a ready market where they can invest excess reserves and earn interest while maintaining liquidity

8.What instruments are not traded in the money market?

Treasury bills

Banker's acceptance

Repurchase agreement

Certificate of Deposit

Corporate bonds

The international capital market consists of the following ______ .

Eurodollar market

Euro commercial paper market

Eurocurrency market

international equity market

international money market

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