In Eurodollar market, decrease in demand of Euro dollars results in
A. increase in KIBOR
B. decrease in KIBOR
C. decrease in federal funds rate
D. increase in federal funds rate
Answer: Option C
Solution(By Examveda Team)
In Eurodollar market, decrease in demand of Euro dollars results in decrease in federal funds rate. The federal funds rate refers to the interest rate that banks charge other banks for lending them money from their reserve balances on an overnight basis.Related Questions on International Finance and Treasury
A. The British Pound
B. The Japanese Yen
C. The Spanish Peso
D. The US Dollar
Not a profit maximizing business is
A. International Monetary Fund
B. International bank for Reconstruction and Development
C. International Financial Corporation
D. World Trade Organisation
A. Merchandise Payment
B. Service Payment
C. Factory Income
D. Transfer payment
Nations that have major economic expansion attract
A. Imports
B. Direct Foreign Investment
C. Exports
D. Privatization
Join The Discussion