Identify the INCORRECT Statement Below Regarding Global Capital Markets

question 113

Multiple Choice

Identify the INCORRECT statement below regarding global capital markets.

• A)Eurobonds are denominated in a currency external to the country where they are issued and traded.
• B)USD financing dominates the eurocurrency markets.
• C)American depository receipts (ADRs)enable a non-US firm to be listed on a US stock exchange.
• D)The main reference rate in eurocurrency markets is the London inter-bank offer rate (LIBOR).
• E)Financing in eurocurrency markets is arranged by offshore banking units (OBUs).

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Definitions:

Interest Rate

The cost of borrowing money or the return on investment, expressed as a percentage of the amount borrowed or invested.

Usury Law

A law that establishes the highest interest rates that lenders can apply to borrowed money.

Loaned Out

Refers to resources or money that has been borrowed out to individuals or entities under an agreement to be repaid, typically with interest, over a certain period.

Usury Law

Legislation that sets maximum interest rates that lenders can charge borrowers to prevent exploitation.