Chapter 24 Test Bank - Static

The term foreign bond market refers to trading in:   A. issues sold in the borrower's country in a currency of another country.   B. none of the above.   C. issues sold in one country and currency by a borrower from another country.   D. issues sold in one country in a currency of another country by a borrower from another country.

A Eurobond is a Group of answer choices A. bond payable in the borrower's currency and sold inside the borrower's country. B. bond payable in the investor's currency but sold inside the borrower's country. C. bond payable in the borrower's currency but sold outside the borrower's country. D. bond payable in the investor's currency but sold outside the borrower's country.

Which one of the following terms is used to describe international bonds issued in a single country and generally denominated in that country's currency?  A.  Eurobonds   B.  American Depositary Receipts   C.  Foreign bonds   D.  Swaps   E.  Gilts

Which of the statement is incorrect? i) Eurobond is a bond issued by an international investor and sold to borrowers in countries with currencies other than the currency in which the bond is denominated. ii) Foreign bond is a bond issued in a host country’s financial market, in the host country’s currency, by a foreign borrower. iii) Eurobond is a bond issued by an international borrower and sold to investors in countries with currencies other than the currency in which the bond is denominated. iv) In contrast, a foreign bond is a bond issued in a host country’s financial market, in the foreign currency, by a foreign borrower.

Which one of the following is a Eurobond? A euro-denominated issued by a South Korean firm sold in the US A US dollar-denominated bond issued by a German firm sold in the US A US dollar-denominated bond issued by a German firm sold in Germany A US dollar-denominated bond issued by a South Korean firm sold in Canada

Finance   What do we call foreign stocks that are bought and sold in the U.S. that are also priced in U.S. dollars? What are these stocks called? Multiple Choice There is no such thing. Foreign stocks must be purchased using that countries foreign currency. They are called SDRs. They are called American Depository Receipts (ADRs) Thev are called U.S. Foreign Dollar Certificates (USDCs).   Detail explaination

1. If the European Central Bank (ECB) wished to cause the EUR to _______, it would _______EUR and _______ foreign currency. A. depreciate; buy; sell B. appreciate; sell; buy C. depreciate; sell; buy D. appreciate; buy; buy 2. In the FX market, trading: A. stops after the London markets have closed B. is restricted to the hours that the Australian banks are open C. takes place at any hour of the night or day D. stops after the London and New York markets have closed

. Which of the following is not classified as a financial instrument? Convertible bond C. Loan receivable Foreign currency contract D. Warranty provision

__________________________________ is a negotiable CD for a U.S. dollar deposit at a bank located outside the United States or in U.S. International Banking Facilities. Select one: A. Repurchase Agreements B. Eurodollar CD C. Foreign Deposits D. Treasury Bill

A: B: Issuer Fee Freddie Mac; (2) Telecom, and The Underwriter B A The entity issuing the debt obligation is the borrower in the transaction. Some of the biggest issuers in the bond market are (1) which H Purchaser corporations such as the U.S. government and the government of U.K.; (2) government-related agencies, such as Fannie Mae and , such as British , such as the state of California, Sakai City, Japan; (3) such as the European Investment Bank and the World Bank. Why do entities municipal governments ebt obligations? Economies around supranational banks ering during 2012 after the 2008-2009 recession. Governments and central banks continued their efforts to facilitate economic recovery. The U.S. rederal Reserve Bank (the Fed) kept interest rates at record lows. This, along with several other reasons, found the bond markets flooded with new bond issues. The following article highlights some reasons why firms issued debt obligations to raise funds.

Eurobonds are best defined as international bonds issued in _____ and denominated in ____.  A.  a single country; multiple currencies   B.  a single country; a single currency   C.  multiple countries; multiple currencies   D.  multiple countries; a single currency   E.  Euroland; euros

Foreign Exchange Market You wish to sell US dollars against sterling and are given the following quotes from two banks. At what price will you deal? 4356/61 4358/63

Select all of the following correct statements regarding Eurobonds and Foreign Bonds: Group of answer choices An example of a Eurobond would be if Bayer AG, a German corporation, issues EUR-denominated debt in Germany. An example of a foreign bond would be if Bayer AG, a German corporation, issues USD-denominated debt in Germany. An example of a foreign bond would be if Bayer AG, a German corporation, issues USD-denominated debt in the United States. An example of a Eurobond would be if Bayer AG, a German corporation, issues USD-denominated debt in Germany.

4 - At what rate is the valuation of demand deposit accounts in foreign currency in the bank account?A) Nominal valueB) Foreign exchange selling rateC) Exchange rateD) With effective purchase rateE) With comparable value

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A bank dealing in foreign currency tells you that the foreign currency will buy you $.80 US dollars. The bank has given you a. a direct quote. b. an indirect quote. c. the official (fixed) rate. d. a forward rate.

Find the attached file.

General Motors Inc. of the United States issues bonds in London. The bonds are denominated in sterling. This is an example of O "Bulldog" bond O "Yankee" bond O "Samurai" bond O Eurobond O none of the above

16- bonds that are sold in a foreign country anda re denominated in a currency other than that of the country in which they are sold are known as . Please select one; a) foreign bonds b) Eurobonds c) Eurocurrencies d) Eurodollars e) none of the above

32 - Which of the following is not included among foreign sources? A) Sellers B) Bonds issuedC) Deposits and Guarantees Given D) Debt securities

A Eurodollar deposit is..   a) a deposit denominated in euros at a US bank  b) a deposit denominated in dollars at a bank "outside" the US  c) a deposit denominated in dollars in the US by a European company  d) an agreement to exchange euros for dollars at a specific exchange rate  e) a deposit issued by banks in order to make loans to Europeans

Which of the following is NOT a characteristics of Eurobonds? a. They are traded on a self-regulated market. O b. They are issued in bearer form. c. They are untaxed. d. They are underwritten by syndicates of banks. e. They can only be denominated in EUR.

Eurodollar CDs would include    A. dollar investments by European entities in the Europe   B. dollars deposited in Caribbean banks   C. dollars deposited in Europe   D. all of the rest

1. Debt denomination decisions Suppose that Coleman Co., a U.S.-based MNC, has a foreign subsidiary named Mostert Co. Mostert requires debt financing for a new project, and is deciding whether to denominate the debt in Mostert's local currency or in U.S. dollars. If Mostert denominates its debt in its U.S. dollars, it True or False: If the interest rate in the United States is lower, Mostert should always denominate its debt in U.S. dollars. True exchange rate risk on its debt repayments. O False Grade It Nous Save & Continu

16. Euro credits a. are short-term and medium-term loans are denominated in Euro b. are extended by banks in Europe / the Eurozone C. are offered to corporations, sovereign governments, non-prime banks, or international organizations. d. all of the options 17. So-called subprime mortgages were typically all of the following, except for a. mortgages granted to borrowers with less-than-perfect credit. b. backed by the full faith and credit of the U.S. government. C. not held to maturity by the originating lender but instead resold to servicing banks. d. aggregated and sliced into tranches representing a different risk class.

Which of the following is (are) example(s) of a Eurocurrency market transaction? A bank in Sydney lends euros to a company in Paris. A company in New York borrows euros from a bank in London. A bank in Auckland lends US dollars to a bank in Tokyo, which then on lends the US dollars to another borrower in Jakarta. Chose 1 option from :   Only III. I and II. Only I. Only II. II and III.