Author Question: The key interest rate in the Eurocurrency market is the A) London interbank offer rate. B) ... (Read 36 times)

itsmyluck

  • Hero Member
  • *****
  • Posts: 546
The key interest rate in the Eurocurrency market is the
 
  A) London interbank offer rate.
  B) Eurobank spread rate.
  C) Prime rate.
  D) C.D. rate.

Question 2

If the dollar interest rate is 10 percent, the euro interest rate is 12 percent, then
 
  A) an investor should invest only in dollars if the expected dollar appreciation against the euro is 4 percent.
  B) an investor should invest only in euros an investor should invest only in dollars if the expected dollar appreciation against the euro is 4 percent.
  C) an investor should be indifferent between dollars and euros an investor should invest only in dollars if the expected dollar appreciation against the euro is 4 percent.
  D) an investor should invest only in dollars.
  E) an investor should invest only in euros.



kusterl

  • Sr. Member
  • ****
  • Posts: 315
Answer to Question 1

A

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

For a complete list of videos, visit our video library