Question 1

Bonds that pay no coupon and are sold at a discount are called

Select one:

a. convertible bonds.

b. interest free bonds.

c. debenture bonds.

d. zero coupon bonds.

Question 2

The theory of purchasing power parity states that

Select one:

a. in the long run, the relative purchasing power of various currencies adjust until they are equalized.

b. currencies will adjust quickly to changes in the demand and supply until equilibrium prices are reached.

c. changes in inflation will equalize the value of currencies around the world.

d. changes in interest rates will equalized the purchasing power of currencies around the world.

Question 3

Characteristics of money market instruments include all the following except

Select one:

a. low default risk.

b. small denominations.

c. short-term maturity.

d. high liquidity.

Question 4

Eurodollar deposits

Select one:

a. are dollar deposits outside United States subject to U.S. regulations.

b. are U.S. dollar deposits outside U.S. not subject to U.S. regulations.

c. are European deposits in dollars in the United States.

d. are deposits in U.S. banks outside the U.S. regulations.

Question 5

Any bond denominated in a currency other than the country it is sold is called a ____.

Select one:

a. Euroloan

b. Eurobond

c. Foreign bond

d. Yankee bond

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Please answer ALL correctly! I will rate! Thank you;)