1- A Eurodollar loan is a(n): a. ECU-denominated loan issued by a U.S. bank. b.
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Question
1- A Eurodollar loan is a(n):
a. ECU-denominated loan issued by a U.S. bank.
b. dollar-denominated loan payable to a European bank.
c. ECU-denominated loan that is subject to banking regulations in both the United States and Europe.
d. dollar-denominated loan issued outside the U.S. domestic banking system.
e. loan by the European Community to the U.S. government.
2-Which of the following is true of unit banking?
a. It is the dominant form of banking in the United Sates.
b. It occurs when national banks open interstate branch offices.
c. It implies that every financial institution should maintain its account with the Federal Reserve.
d. It occurs when a bank is not allowed to operate in more than one location.
e. It refers to the monopolization of the banking industry.
3-Which of the following is not true about a special drawing right (SDR)?
a. The SDR is a composite currency.
b. The value of the SDR is an average of the values of the currencies of the major industrial countries.
c. The SDR was created in 1980 by the World Bank.
d. The SDR is an international reserve asset.
e. The SDR is used to settle international debts.
4-Which of the following is the official policy-making body of the Federal Reserve System?
a. Federal Advisory Council
b. The U.S. Treasury
c. The Federal Open Market Committee
d. The Board of Governors
e. The Federal Reserve district banks
5- Which of the following statements is incorrect?
a. The Federal Reserve Open Market Committee determines fiscal policy actions for the Congress.
b. The Board of Governors of the Federal Reserve is appointed, not elected.
c. The Federal Reserve System was designed to be independent of the executive branch of the government.
d. The chairman of the Board of Governors serves a four-year term.
e. The Federal Reserve districts are distributed geographically to serve the particular interests
of each region.
Explanation / Answer
A eurodollar loan is a dollar-denominated loan issued outside the U.S. domestic banking system.
As Eurodollar by definition means american dollar which is deposited outside the american domestic banking system which even includes the foreign branshed of U.S. banks.
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