Which of the Following Is NOT a Reason for the Smaller

question 20

Multiple Choice

Which of the following is NOT a reason for the smaller interest rate spread in Eurocurrency markets

• A) the absence of legal reserve requirements
• B) lack of competition for deposits
• C) economies of scale
• D) risk diversification

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Definitions:

Audit

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern.

Opinion

A belief or judgment formed about something, not necessarily based on fact or knowledge.

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public; it involves practicing good citizenship through sustainable business operations and philanthropy.

Sarbanes-Oxley Act

U.S. legislation enacted in 2002 to protect investors from fraudulent financial reporting by corporations, requiring strict adherence to accounting standards and the establishment of internal controls.