FIN308 - chap 11- international money market

Eurobonds sold in the United States may not be sold to U.S citizens

• True

• False

What is ICE LIBOR?

• An interest rate set by central banks

  
  

• A new currency issued by the European Central Bank

• A bank-linked yield, administered by ICE, reflecting the short-term borrowing costs between banks

  
  

• A fixed-term bond

In which areas is ICE LIBOR commonly used?

• Pricing of loans, bonds, financial derivatives

  
  

• Cryptocurrency trading

• Pricing of crude oil

• Real estate trading

What are Euronotes?

• Long-term bonds issued in a single currency

• Short-term notes underwritten by international banks

• Government bonds denominated in Euros

• Corporate bonds sold only to European investors

  
  

What is the typical maturity of a Euronote?

• 10-30 years

• 1-2 years

• Three to six months

• Less than one month

What is Eurocommercial paper?

• Long-term secured bond

• Short-term unsecured promissory note

• Equity stock

• Government bond

How does the credit quality of Eurocommercial paper issuers compare to U.S. commercial paper issuers?

• Higher quality

• Same quality

• Lower quality

• No comparison available

In an FRA, the seller agrees to pay the buyer if interest rate ......... above / below an agreement rate

• increase

• decrease

• Stable

In which year was LIBOR (London Interbank Offered Rate) officially discontinued?

• 2019

• 2020

• 2021

• 2022

....................is established when two banks maintain a correspondent bank account with one another

• representative office

• Foreign Branches

• Affiliate Banks

• correspondent bank