Affiliate Marketing Secrets

When you deposit US dollars in a Europeon bank, this would be called
Answer
A. a Eurodollar futures account
B. a Eurodollar bond
C. a Euro denominated investment
D. a Eurodollar account
E. a and d
Eurodollars deposits pay a higher interest compared with equivalent term US deposit accounts because
Answer
A. Europe has a different central bank that regulates rates paid
B. It costs more to send your money to Europe
C. European investments have exchange rate risk
D. The Eurodollars are futures contracts
E. Eurodollars are not regulated by the Fed and have more risk
What was a major source of growing Eurodollar deposits during the 1970s and early 1980s?
Answer
A. Petrodollars
B. Drug money
C. Secret CIA account deposits
D. US tourist spending in Europe
E. b and d
What role do Eurodollar futures play in the world of finance?
Answer
A. Provide a vehicle to speculate in currency markets
B. Provide a vehicle to hedge foreign currency risk
C. Provide a vehicle to reduce exposure to stock market risk
D. Provide a vehicle to reduce interest rate risk
E. b and d
If you are concerned about a fall in interest rates paid on Eurodollar deposits and would like to hedge that risk, you could
Answer
A. Buy Eurodollar futures
B. Sell Eurodollar futures
C. Buy Euros forward
D. Buy US dollars forward
E. a and d
If NY interest rates rise (relative to UK) by .25 percent (25 basis points) and you are long (a buyer) of Eurodollar futures, then
Answer
A. You will lose money in your futures account
B. You will gain money in your futures account
C. You will not see any change because the rate change is in NY not Eurodollar deposits
D. Money will flow to NY and Eurodollar deposit rates will decline
E. b and d
The growth of international financial derivatives in the past 25 years has made the world
Answer
A. more interconnected through financial markets and less risky
B. less interconnected through financial markets and more risky
C. more interconnected through financial markets and more risky
D. less interconnected through financial markets and less risky
International bond markets have grown along with growth of other financial products globally. What type of market is this?
Answer
A. equities
B. futures
C. debt
D. deposit
E. commodities
F. private
When Treasury bond prices rise, this would likely happen if and when
Answer
A. Inflation reports indicate lower prices
B. Financial worries increase
C. Inflation increases
D. US imports increase
E. a and b
To bet on a directional move in the CPI (Consumer Price Index), what trade would you do if you thought CPI would be trending higher?
Answer
A. Buy Treasury bonds
B. Sell Eurodollar futures
C. Sell Treasury bonds
D. Buy stocks
E. a and d