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Question
Which of the following is an example of a Eurocurrency?a. A branch of a Canadian bank located in Paris accepts a deposit in U.S. dollars.
b. A branch of a U.S. bank located in Tokyo accepts a deposit in Japanese yen.
c. A branch of a U.S. bank located in New York accepts a deposit in U.S. dollars.
d. A branch of a London bank located in Paris accepts a deposit in Euros.
e. A branch of a Swiss bank located in Mexico City accepts a deposit in Mexican pesos.
Answer
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Related questions
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Which of the following is not true regarding collateralized mortgage obligations (CMOs)?
a. Interest earned on CMOs is exempt from state income taxes.
b. CMO yields are generally higher than comparable Treasury yields.
c. CMOs exhibit little default risk.
d. All of the above are true.
e. Only a. and c. are true.
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Regulators generally prohibit banks from purchasing ____________ for income purposes.
a. Treasury bills
b. commercial paper
c. common stock
d. repurchase agreements
e. bankers' acceptances
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a. A Hays County general obligation bond to modernize the county fire department.
b. A Lubbock County general obligation bond to build a new sewer plant.
c. A City of San Marcos general obligation bond to pay for street repairs.
d. A City of El Paso general obligation bond to pay for a new city jail.
e. A State of Texas bond to finance road repairs.
Q:
Banks can effectively improve their portfolios by:
a. shortening maturities when yields are expected to fall.
b. obtaining less call protection when rates are expected to fall.
c. reducing diversification when the economy is slowing down.
d. increasing bond quality when quality yield spreads are low.
e. all of the above
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An investor can invest in either a tax-exempt security that pays 5% or a taxable corporate security of comparable risk and maturity that pays 8%. At what marginal tax rate will the investor be indifferent between these two securities?
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The static spread is:
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b. the difference between a fixed-rate yield and a floating-rate yield.
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Eurobonds are subject to fewer regulations than U.S. issued bonds.
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b. currencies in the future at a specified time at an unknown exchange rate.
c. currencies in the future at an unspecified time at an unknown exchange rate.
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Q:
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d. the U.S. government has strongly discouraged U.S. banks from making international loans.
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The risk that a foreign government will suspend debt service payments is known as:
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Q:
The first type of international office that a bank forms outside its home country that is exploratory in nature is known as:
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b. a head office.
c. a representative office.
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Q:
Historically, what has prevented universal banks from operating in the United States?
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b. The Glass-Stegall Act
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Q:
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a. France
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Q:
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b. 2.0%.
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Q:
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Q:
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Q:
Venture capital financing that comes in the "later rounds" of financing may take the form of:
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c. automobile financing.
d. seed money.
e. staff financing.
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Q:
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a. protect the borrower from lender interference in management.
b. are limited to "negative" provisions.
c. may limit discretionary cash outlays by borrowers.
d. are seldom enforced.
e. often result in the lender's bankruptcy.
Q:
In the credit process, which of the following activities falls under Credit Execution and Administration?
a. Financial statement analysis
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a. International risk
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c. Continent risk
d. Country risk
e. Government risk
Q:
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Q:
In regards to repurchase agreements, the margin is:
a. a good faith deposit.
b. a loan against the repurchase agreement.
c. a risk-free guarantee.
d. the difference between the market value of the collateral and the amount of the loan.
e. all of the above.