1. Certificates of Deposit issued in the Eurodollar market tend to offer:

		Higher interest rates than CDs issued in the US market
		Lower interest rates than CDs issued in the US market
		Interest rates equal to interest rates for CDs in the US.

2. Which one of the following is a reason to use a clearing house for futures contracts?

		Reducing the volatility in futures prices
		Reducing the counter party risk in futures contracts
		Reducing the transactions costs for futures contracts

3. Speculators who trade future contracts in currency futures:

		Usually take long positions
		Usually take short positions
		Take long or short positions depending on the perceived opportunities

4. Which one of the following is a feature of the Eurodollar market?

		Availability of deposit insurance from FDIC
		Risk free borrowing and lending
		Narrow spread between borrowing and lending rates