The preferences of corporations and governments to borrow in foreign currencies and of investors to make short-term investments in foreign currencies resulted in the creation of the international bond market.

Question

Quizplus · Accepted Answer

The preferences described led to the development of the Eurocurrency market, not the international bond market. The international bond market involves the issuance of bonds in foreign currencies, but it is distinct from the Eurocurrency market, which deals with deposits and loans in foreign currencies.

The Preferences of Corporations and Governments to Borrow in Foreign