A Decrease in the Implied Three-Month LIBOR Yield Causes Eurodollar

question 13

Multiple Choice

A decrease in the implied three-month LIBOR yield causes Eurodollar futures price

• A)to increase.
• B)to decrease.
• C)there is no direct or indirect relationship.
• D)none of the options

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Definitions:

Relationship

A connection, association, or involvement between two or more entities.

Variables

Elements, features, or factors that are likely to vary or change within a study, experiment, or any form of research.

Illusory Correlation

The perception of a relationship between two variables when no such relationship exists or it is much weaker than perceived.

Unrelated Variables

Variables in a study or experiment that are not connected to each other, having no direct influence or correlation.