Multiple Choice
Which of the following is a drawback of the Eurocurrency market?
A) Borrowing funds within their home country can expose a company to foreign exchange risk.
B) The probability of a bank failure that would cause depositors to lose their money is greater.
C) The system is over-regulated and, therefore, more costly.
D) The higher interest rate received on home-country deposits reflects the costs of insuring against bank failure.
Correct Answer:
Verified
Correct Answer:
Verified
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