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Company Y, which is domiciled in the U.S., borrows $10 million dollars from the New York branch of Deutsche Bank and posts 9 million euros

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Company Y, which is domiciled in the U.S., borrows $10 million dollars from the New York branch of Deutsche Bank and posts 9 million euros as collateral for the loan with Deutsche Bank in Germany. The effect of this transaction on the German balance of payments is: A. A credit to the financial account (portfolio investments) and a debit to the financial account (other) B. A credit to the current account (services) and a debit to the financial account (portfolio investments) C. A credit to the financial account (other) and a debit to the financial account (other) D. No effect Which of the following is true? A. Not all "Eurodollar" deposits are actually denominated in dollars B. Instead of having a bid/offer spread, global banks charge fees on Eurodollar deposits C. The Eurodollar market is popular due to the nature of domestic regulations D. Interest is calculated differently for Eurodollar deposits than it is for Eurodollar loans

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