8. International money and capital markets Globalization has led to the progressive integration of capital markets around the world, allowing worldwide investors and corporations to trade with or in other countries. The following table provides descriptions of certain transactions or situations.

Based on your understanding of international capital markets and international money, choose the best term to match each description.

South Korean wons are deposited in a bank in Brazil.

A. Eurocurrency

B. Eurodollars

A U.S. corporation starts a greenfield project in Mexico.

A Direct Investment

B. Portfolio Investment

This is the tied interest rate on a Eurodollar deposit in Europe.

A. Federal Bunds Rate

B. Libor

This type of bond is issued by a European company in U.S. dollars and sold to American investors in the U.S. stock market under the SEC regulations.

A. Yankee Bond

B. Euro Bond