Which of the following statements is correct? If the exchange rate is the price in foreign currency for a dollar, the quote is called an European or indirect quote. Yen-denominated bonds sold in Japanese financial markets by non-Japanese firms are called Yankee bonds. Eurocredit loans are made by small banks with variable maturities rates of interest that is tied to a base equity rate such as CAPM. All the answers are correct. The most widely quoted Eurocurrency interest rate is the London Interbank Offer Rate, or LIBOR, which is the long-term premium rate that major insurance firms in London charge to policyholders. Question 21 1 p Which of the following statements is correct? It is correct to say that if the value of the dollar fallen against the pound, the goods and services priced in dollars are now more expensive to someone holding pounds. The foreign exchange quote of 0.5125/$ is an indirect quote from an American perspective. All the answers are correct. The American or direct quote shows the amount of foreign currency per U.S. dollar. If the exchange rate is the price in foreign currency for a dollar, the quote is called an American or direct quote