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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
