Which of the Following Statements Concerning a Eurodollar Deposit Is

question 74

Multiple Choice

Which of the following statements concerning a eurodollar deposit is correct?

• A) Eurodollar deposits tend to pay yields below all marketable securities with similar maturities owing to their low risk.
• B) Eurodollar deposits are highly liquid and pay interest only at maturity; hence the yield is higher than on marketable securities.
• C) Eurodollar deposits tend to provide yields above nearly all marketable securities with similar maturities owing to the higher FX risk.
• D) Eurodollar deposits tend to provide yields above nearly all marketable securities with similar maturities owing to the lack of a secondary market.

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Definitions:

Narcissistic

Pertaining to narcissism, a personality trait characterized by an inflated sense of self-importance, need for admiration, and a lack of empathy for others.

Extraverted

A personality trait characterized by high levels of outgoingness, sociability, and energy in social situations.

Impulsive

Acting on instincts or desires without considering consequences or deliberation, often leading to hasty and sometimes regrettable decisions.

Reward

A positive reinforcement or incentive given in response to desired behavior, often used to motivate or encourage.