IB chapter 12

a eurocurrency

any currency banked outside of its country of origin

the risk associated with a portfolio

decreases as the investor increases the number of stocks in her portfolio

an italian corporation issues a bond denominated in dollars, this is an example of

eurobond

___ are international bonds, normally underwritten by an international syndicate of banks and placed in countries other than the one in whose currency the bond is denominated.

eurobonds

which of the following is a drawback of the eurocurrency market?

exposure to foreign exchange risk

which of the following statements is true of the use of information technology in financial services

financial services are in information-intensive industry

united states sells bonds that are denominated in dollars in europe. this is an example of an

foreign bond

the cost of capital is

higher in a purely domestic capital market than a global market

perform a direct connection function in capital markets

investment banks

a factor that makes the eurocurrency market attractive to both depositors and borroweres is

its lack of government regulation

the cost of capitol is the

price of borrowing money

which of the following is a disadvantage of the integration facilitated by technology

shocks that occur in one financial center will spread globally

when an investor purchases a corporate bond, he purcahses the righ tot recieve a

specified fixed stream of income from the corporation

which of the following statements is true of foreign bonds?

such bonds are denominated in the issuing country's currency

foreign bonds sold in the US are called

yankee bonds