Question 1

The "globalization of finance" in relatively recent years

Accepted Answer

A)  is an entirely new phenomenon in the world economy. 
B)  is not an entirely new phenomenon because a similar expansion of financial flows Occurred in the world economy in the 1930s. 
C)  is not an entirely new phenomenon because a similar expansion of financial flows Occurred in the world economy in the 1870-1914 period. 
D)  has been primarily associated with the flow of foreign direct investment across Country borders rather than with growth in financial flows such as international Bank lending. 
A)  is an entirely new phenomenon in the world economy. 
B)  is not an entirely new phenomenon because a similar expansion of financial flows Occurred in the world economy in the 1930s. 
C)  is not an entirely new phenomenon because a similar expansion of financial flows Occurred in the world economy in the 1870-1914 period. 
D)  has been primarily associated with the flow of foreign direct investment across Country borders rather than with growth in financial flows such as international Bank lending.

Question 2

Eurodollars __________ be borrowed by U.S. banks for use in the United States, and, Because of this fact, the conduct of effective monetary policy in the United States is__________ than would otherwise be the case.

Accepted Answer

A)  cannot; more difficult 
B)  cannot; easier 
C)  can; more difficult 
D)  can; easier 
A)  cannot; more difficult 
B)  cannot; easier 
C)  can; more difficult 
D)  can; easier

Question 3

A eurodollar interest rate put option, which was purchased at a strike price of 93,

Accepted Answer

A)  would not be exercised if the market interest rate was 6½ percent on the contract date. 
B)  gives the buyer the option of acquiring a lending rate of 9.3 percent on the contract Date. 
C)  gives the buyer the option of receiving a 7 percent deposit rate on the contract date. 
D)  would cost the buyer 93 basis points. 
A)  would not be exercised if the market interest rate was 6½ percent on the contract date. 
B)  gives the buyer the option of acquiring a lending rate of 9.3 percent on the contract Date. 
C)  gives the buyer the option of receiving a 7 percent deposit rate on the contract date. 
D)  would cost the buyer 93 basis points.

Question 4

A U.S. mutual fund that purchases packages of equities that contain stocks of
Corporations both in the United States and in other countries worldwide is called

Accepted Answer

A)  an international fund. 
B)  a global fund. 
C)  an emerging market fund. 
D)  a regional fund. 
A)  an international fund. 
B)  a global fund. 
C)  an emerging market fund. 
D)  a regional fund.

The "globalization of finance" in relatively recent years

Eurodollars be borrowed by U.S. banks for use in the United States, and, Because of this fact, the conduct of effective monetary policy in the United States is than would otherwise be the case.

A eurodollar interest rate put option, which was purchased at a strike price of 93,

A U.S. mutual fund that purchases packages of equities that contain stocks of Corporations both in the United States and in other countries worldwide is called

Early Trade Theories: Mercantilism and the Transition to the Classical World of David Ricardo

The Classical World of David Ricardo and Comparative Advantage

Extensions and Tests of the Classical Model of Trade

Introduction to Neoclassical Trade Theory: Tools to Be Employed

Gains From Trade in Neoclassical Theory

Offer Curves and the Terms of Trade

The Basis for Trade: Factor Endowments and the Heckscher-Ohlin Model

Empirical Tests of the Factor Endowments Approach

Post Heckscher-Ohlin Theories of Trade and Intra-Industry Trade

Economic Growth and International Trade

International Factor Movements

The Instruments of Trade Policy

The Impact of Trade Policies

Arguments for Interventionist Trade Policies

Political Economy and Us Trade Policy

Economic Integration

International Trade and the Developing Countries

The Balance-Of-Payments Accounts

The Foreign Exchange Market

The Monetary and Portfolio Balance Approaches to External Balance

Price Adjustments and Balance-Of-Payments Disequilibrium

National Income and the Current Account

Economic Policy in the Open Economy Under Fixed Exchange Rates

Economic Policy in the Open Economy Under Flexible Exchange Rates

Prices and Output in the Open Economy: Aggregate Supply and Demand

Fixed or Flexible Exchange Rates

The International Monetary System: Past, Present, and Future

Filters

Exam 21: International Financial Markets and Instruments: an Introduction

The "globalization of finance" in relatively recent years

Eurodollars __________ be borrowed by U.S. banks for use in the United States, and, Because of this fact, the conduct of effective monetary policy in the United States is__________ than would otherwise be the case.

A eurodollar interest rate put option, which was purchased at a strike price of 93,

A U.S. mutual fund that purchases packages of equities that contain stocks of Corporations both in the United States and in other countries worldwide is called

Early Trade Theories: Mercantilism and the Transition to the Classical World of David Ricardo

The Classical World of David Ricardo and Comparative Advantage

Extensions and Tests of the Classical Model of Trade

Introduction to Neoclassical Trade Theory: Tools to Be Employed

Gains From Trade in Neoclassical Theory

Offer Curves and the Terms of Trade

The Basis for Trade: Factor Endowments and the Heckscher-Ohlin Model

Empirical Tests of the Factor Endowments Approach

Post Heckscher-Ohlin Theories of Trade and Intra-Industry Trade

Economic Growth and International Trade

International Factor Movements

The Instruments of Trade Policy

The Impact of Trade Policies

Arguments for Interventionist Trade Policies

Political Economy and Us Trade Policy

Economic Integration

International Trade and the Developing Countries

The Balance-Of-Payments Accounts

The Foreign Exchange Market

The Monetary and Portfolio Balance Approaches to External Balance

Price Adjustments and Balance-Of-Payments Disequilibrium

National Income and the Current Account

Economic Policy in the Open Economy Under Fixed Exchange Rates

Economic Policy in the Open Economy Under Flexible Exchange Rates

Prices and Output in the Open Economy: Aggregate Supply and Demand

Fixed or Flexible Exchange Rates

The International Monetary System: Past, Present, and Future

Filters

Eurodollars be borrowed by U.S. banks for use in the United States, and, Because of this fact, the conduct of effective monetary policy in the United States is than would otherwise be the case.