If a Country Was Host to Several Eurobanks, Then It

question 36

Multiple Choice

If a country was host to several Eurobanks, then it may be reasonable to find:

• A) Strict quota enforcement on all capital leaving for the Eurozone.
• B) One set of rules for banking in domestic currency and a different one for foreign currency.
• C) Interest rate controls on deposits, but not loans.
• D) Standards on required reserves for all banks in the country.

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Definitions:

Avoidable Costs

Expenses that can be eliminated if a particular decision is made or if a particular activity is discontinued.

Irrelevant Costs

Costs that should not influence decision-making because they will not change regardless of the outcome.

Sunk Costs

Past expenditures that have already been incurred and cannot be recovered or altered by current or future actions.

Decision Making

Selecting a course of action from competing alternatives.