Author Question: The fact that assets of the political opponents of the U.S. were frozen in U.S. banks A) was ... (Read 73 times)

SAVANNAHHOOPER23 · **on:** Jun 30, 2018

The fact that assets of the political opponents of the U.S. were frozen in U.S. banks

A) was challenged as unconstitutional.
B) lead to an increased amount of funds being placed in Eurobanks.
C) lead to a violation of the Law of One Price.
D) lead to the Cold War.
E) lead to a violation of Regulation Q.

Question 2

Why may equity finance be preferred to debt finance for developing countries?

A) A fall in domestic income automatically reduces the earnings of foreign shareholders without violating any loan agreement.
B) There are laws insuring against any default with equity finance.
C) The risk is shared between debtor and creditor with debt finance.
D) The tax structure leaves equity finance unconstrained.
E) Repayments are unaffected by falls in real income.