Match the Term with the Definition

question 2

Multiple Choice

Match the term with the definition.
-A system in which corporations give shares of their stock to trustees who hold the stocks "in trust" for their stockholders, thereby coordinating the industry to ensure profits to the participating corporations and curb competition.

• A)civil service reform
• B)finance capitalism
• C)free silver
• D)Gilded Age
• E)gospel of wealth
• F)Interstate Commerce Commission (ICC)
• G)Jim Crow
• H)trust
• I)Sherman Antitrust Act
• J)social Darwinism
• K)spoils system
• L)Woman's Christian Temperance Union (WCTU)

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Definitions:

London Interbank Offer Rate

LIBOR; a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.

Covered Interest Arbitrage

A trading strategy in which an investor uses a forward contract to hedge against exchange rate fluctuations, exploiting the interest rate differentials between two countries.

Uncovered Interest Parity

A financial theory suggesting that expected differences in interest rates between two countries will equal the expected change in exchange rates between their currencies.