Section A-40 marks 1. The majority of financial instruments in the euromarkets are currently denomina A: Euros B: Japanese yen C: British pounds D: US dollars 2. Which of the following best defines a euromarket-type transaction? A: a transaction conducted in European currency units' within the European union B: a financial transaction denominated in a currency outside the currency of the country where the debt issue is made C: a wholesale foreign exchange transaction of a government or institutional investor D: a financial transaction in USD, conducted solely within the European markets 3. When an Australian company borrows in the euromarkets and the Australian dollar depreciates more than the interest rate advantage, then the actual cost of the loan is: A: lower than if the company had borrowed in Australia B: higher than if the company had borrowed in Australia C: unaffected, as the company has a natural hedge D: offset by the principal increase 4. The main role of a lead manager for a syndicated loan facility program for a eurocurrency bank loan is to: A: provide the funds to the issuer B: act as an arranger of the debt issue, and structure the facility C: act as an underwriting syndicate, and purchase paper not taken up by the market. D: provide a supporting guarantee for the issue. 5. If a government's income from tax receipts exceeds its expenditure, the government is running A: a deficit, and is a net borrower of funds B: a surplus, and is a net borrower of funds C: a deficit, and is a net saver of funds D: a surplus, and is a net saver of funds