Which of the following is NOT a reason for the smaller interest rate spread in Eurocurrency markets
A) the absence of legal reserve requirements
B) lack of competition for deposits
C) economies of scale
D) risk diversification
Correct Answer:
Verified
Q1: An increase in the pound price of
Q8: A capital outflow from New York to
Q9: The currency of the nation with the
Q10: Hedging refers to:
A)the acceptance of a foreign
Q15: When the interest differential in favor of
Q16: Commercial bank deposits outside the country of
Q21: Discuss the reasons for the existence and
Q22: Explain what carry trade is.
Q23: The U.S.interest rate is 2%.The U.K.interest rate
Q24: (a)If the positive interest rate differential in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents