A large U.S. company has £500,000 in excess cash from its foreign operations. The company would like to exchange these funds for U.S. dollars

You would like to purchase a security that is issued by the British government. Which one of the following should you purchase?    A.  Samurai bond B.  kronor C.  Euro D.  LIBOR E.  gilt Refer to section 21.1

7.

On Friday evening, Bank A loans Bank B Eurodollars that must be repaid the following Monday morning. Which one of the following is most likely the interest rate that will be charged on this loan?    A.  Eurodollar yield to maturity B.  London Interbank Offer Rate C.  Paris Opening Interest Rate D.  United States Treasury bill rate E.  international prime rate Refer to section 21.1

8.	Party A has agreed to exchange $1 million U.S. dollars for $1.21 million Canadian dollars. What is this agreement called?    A.  gilt B.  LIBOR C.  SWIFT D.  Yankee agreements E.  swap Refer to section 21.1

9.

A large U.S. company has £500,000 in excess cash from its foreign operations. The company would like to exchange these funds for U.S. dollars. In which of the following markets can this exchange be arranged?    A.  ADR B.  national registry C.  national discount window D.  foreign exchange market E.  Eurobond market Refer to section 21.2

10.	The price of one Euro expressed in U.S. dollars is referred to as a(n):    A.  ADR rate. B.  cross inflation rate. C.  depository rate. D.  exchange rate. E.  foreign interest rate. Refer to section 21.2