8. Which of the following is not one of advantages of Eurocurrency market?

(a)a low financing cost for the international borrower

(b)no reserve requirements on Eurocurrency deposits

(c)strict regulation and surveillance for Euro-banking institutions

(d)tax advantages with offshore financing

9. Which of the following is the most widely used reference interest rate which is used in the Eurocurrency market?

(a) US prime rate

(b) Eurocurrency deposit rates

(c) Eurocurrency lending rate

(d) LIBOR

10. Which of the following interest rate pair has usually the smallest gap/spread?

(a) LIBOR -- LIBID

(b) domestic lending rate -domestic borrowing rate

(c) Eurocurrency lending rate - Euro currency deposit rate

(d) consumer loan rate - domestic deposit rate

11.Which of the following is an example of Eurobonds?

(a) Intel issues a 20-year bond in the UK pound in London.

(b) HSBC of UK issues a 10-year bond in the euro in Paris.

(c) Toyota of Japan issues a 15-year bond in the Japanese yen in Tokyo.

(d) Samsung of Korea issues a 10-year bond in the euro in New York.

12.The Ted spread measures the difference between ___ and___ .

(a) LIBOR, TB rate

(b) The Fed funds rate, the discount rate

(c)TB rate, forward premium/discount

(d)The prime rate, the 3-month CD rate

13.The largest benefit from international portfolio diversification can be obtained when

(a)The correlation coefficient between national markets are positive and close to 1.0.

(b)The covariance between national markets are zero.

(c)The correlation coefficients are negative and close to -1.0.

(d)The variances of return in each market arevery large and increasing.

14.Which of the following is one of Eurobonds.

(a)Samurai bond

(b)Panda bond

(c)Dim sum bond

(d)Yankee bond

15.Which of the following is not one of main proposals for global banking sector reforms?

(a)device early warning system

(b)impose sufficient capital requirements on banks

(c)break up too-big-to-fail banks

(d)deregulate and liberalize shadow banking and credit derivatives