Which of the Following Is a Drawback of the Eurocurrency

question 82

Multiple Choice

Which of the following is a drawback of the eurocurrency market?

• A)High reserve ratio requirements
• B)Higher cost of transaction
• C)Lower interest rates on deposits
• D)Exposure to foreign exchange risk

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Definitions:

Consumer Surplus

The variance between the aggregate sum consumers are prepared and capable of spending for a product or service and the aggregate sum they end up paying.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive following trade.

Marginal Benefit

The boost in pleasure or utility a person gets from purchasing one more unit of a product or service.

Output

The aggregate output of products or services generated by an enterprise, sector, or economic system over a defined time frame.