If the term structure of interest rates in two countries differ, ...

[V@ndy87]

If the term structure of interest rates in two countries differ, the differences reflect
 
  A) expected price levels over time.
  B) expected GDP differences.
  C) the absence of covered interest arbitrage.
  D) expected exchange rate changes over time.

Question 2

Besides world trade growth, what can explain the growth of international banking since the 1960s?
 
  A) war in the Middle East
  B) government focus on banking regulation.
  C) an increase in world travel.
  D) the emergence of developing countries like China.
  E) desire of depositors to hold currencies outside the jurisdiction of the countries that issue them

[31809pancho]

Answer to Question 1

D

Answer to Question 2

E

[V@ndy87]

Excellent

[raenoj]

Gracias!