60.1K

Verified Solution

Link Copied!

2.Which of the following is not true of global capital markets a) they benefit borrowers b) they benefit sellers c) they raise the cost of capital d) they provide a wider range of investment opportunities

3.Compared to developed nations, less developed nations have a) smaller capital markets b) more investment opportunities c) similar costs of capital d) greater liquidity

4.Historically, the most tightly regulated industry has been a) agriculture b) consumer electronics c) automotives d) financial services

5. The term eurocurrency refers to a) the currency used by the European Union countries b) any currency banked outside its country of origin c) currencies purchased in the international equities market d) bonds sold outside the borrowers country that are denominated in the currency of the country in which they are issued

6. Approximately two-thirds of all Eurocurrencies are A) Euro-yen. B) Euro-pound. C) Euro-euro. D) Euro-dollars.

7. Which of the following is a drawback of the Eurocurrency market? A) Borrowing funds within its home country can expose a company to foreign exchange risk. B) There is a greater probability of a bank failure that would cause depositors to lose their money. C) The system is overregulated and, therefore, more costly. D) The higher interest rate received on homecountry2

8.Which of the following is true of the Eurobond market? A) There are many regulations that protect investors. B) Government limitations are generally more stringent for securities denominated in foreign currencies. C) There are less stringent disclosure

9.________ can inject risk into foreign currency borrowing. A) Movements in exchange rates B) Use of fixed-exchange rates C) Issue of domestic bonds D) Use of pegged exchange rates

v10. Borrowers can hedge against foreign exchange risks by entering into a ________ contract. A) hedge fund insurance B) prevailing exchange rate C) forward D) global capital market requirements than in most domestic bond markets. D) They have an unfavorable tax status. deposits reflects the costs of insuring against bank failure.

Answer & Explanation Solved by verified expert

See Answer