Which of the Following Statements in Relation to the Relative

question 81

Multiple Choice

Which of the following statements in relation to the relative cost of transactions in the euromarkets is incorrect?

• A) Euromarket transactions transcend country boundaries and therefore are not exposed to foreign exchange risk.
• B) They do not deal in small retail market transactions, so their administrative and operating costs per dollar transacted are lower.
• C) Loans tend to be for large amounts to medium-to-large borrowers, and so fewer resources are devoted to credit risk assessment per dollar lent.
• D) Since transactions are conducted outside the jurisdiction of central bank regulation, costs associated with regulatory controls are minimised.

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Definitions:

Falling

The action or process of moving downwards, typically rapidly and freely without control.

Interacting Individuals

Refers to people engaging with each other, influencing and being influenced by one another's actions, behaviors, and communications.

Role Sets

The array of roles attached to a single status in society, highlighting the complexity of social positions and the potential for role conflict.

Conform

To align one's behavior or beliefs with the norms, rules, or standards of a group or society, often due to social pressure or the desire for acceptance.