国际金融英文版试题chapter7汇编

INTERNATIONAL FINANCE

Assignment Problems (7) Name: Student#:

I. Choose the correct answer for the following questions (only correct answer) (4 credits for each question, total credits 3 x 21 = 63)

1. __________ are domestic currencies of one country on deposit in other countries.

A. LIBORs

B. Eurobonds

C. Eurocurrencies

D. Euronotes

2. Eurocredits are __________.

A. bank loans to MNCs or others denominated in a currency other than that of a country where the bank is located

B. typically variable rates which are tied to the LIBOR

C. usually for maturities of six months or less

D. all of the above are true

3. A Japanese firm had chosen to deposit money in a German bank and have it denominated in Japanese yen, this is an example of a __________ deposit.

A. Eurobond

B. Euronote

C. Euroyen

D. foreign yen

4. If a bond is issued by a domestic borrower, denominated by domestic currency, marketed and regulated by domestic monetary authorities, this is a __________.

A. foreign bond

B. Eurobond

C. domestic bond

D. global bond

5. A bond that trades in the Eurobond market as well as in one or more national bond markets is a __________.

A. Eurobond

B. global bond

C. foreign bond

D. domestic bond

6. __________ are issued in a domestic market by a foreign borrower, denominated in domestic currency, marketed to domestic residents, and regulated by domestic authorities.

A. foreign bonds

B. Eurobonds

C. domestic bonds

D. Yankee bonds

7. The Federal National Mortgage Association (Fannie Mae) issued a dollar-denominated bond with a 7.25% annual coupon and a maturity date in 2030 to non-U.S. investors in an external market. This bond is typically a __________.

A. foreign bond

B. Eurobond

C. domestic bond

D. Yankee bond

8. A euro-denominated loan is traded in Eurocurrency market. This loan is called __________.

A. euro loan

B. Euroeuro loan

C. foreign euro loan

D. none of the above

9. Which of the following is true for a Eurocurrency market?

A. A Eurocurrency market is not subject to any countries’ interest rate regulations.

B. A Eurocurrency market does not need to meet any countries’ reserve requirements.

C. A Eurocurrency market enjoys the privilege of free flow of capitals

D. All of the above must be true

10. Citigroup in Los Angeles borrows a Canadian dollar-denominated deposit from Union Bank of Switzerland (UBS) in Geneva. This is a __________ deposit.

A. Euronote

B. Euro-Swiss franc

C. Euro-Canadian dollar

D. Eurobond

11. Which of the following is NOT true about the original Eurodollar?

A. The Soviet Union maintained dollar-denominated deposits in U.S. banks in the early 1950s. The Soviet government feared that U.S. might freeze those deposits because of the Cold War.

B. The Soviet Union moved those dollars to banks in London.

C. Since the dollars were in Europe, they were called “Eurodollars”.

D. The Soviet Union worried that the U.S. would not convert the U.S. dollar into the gold as promised.

12. There are many ways to classify financial markets. The category of money market and capital market is made according to __________.

A. whether or not they are regulated by a single country

B. whether or not a financial intermediary stands between borrowers and savers