The Current Structure of Financial Markets Can Be Best Understood

question 57

Multiple Choice

The current structure of financial markets can be best understood as the result of attempts by financial market participants to

• A)adapt to continually changing government regulations.
• B)deal with the great number of small firms in the United States.
• C)reduce transaction costs.
• D)cartelize the provision of financial services.

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Definitions:

Forward Trade

Agreement to exchange currency at some time in the future.

Agreed-upon

Something that has been mutually accepted or concurred by all parties involved.

LIBOR

An average interest rate calculated through submissions of interest rates by major banks in London, used as a benchmark for short-term interest rates around the world.

Eurodollars

U.S. dollars deposited in banks outside the United States, often used for international transactions.