LIBOR Is Generally ________ the Fed Funds Rate Because Foreign

question 60

Multiple Choice

LIBOR is generally ________ the Fed funds rate because foreign bank deposits are generally ________ than domestic bank deposits.

• A)greater than; less risky
• B)less than; more risky
• C)the same as; equally risk
• D)greater than; more risky
• E)less than; less risky

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Definitions:

Monthly

Occurring, produced, or executed once every month.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement planning.

RRSP

Registered Retirement Savings Plan, a Canadian account for holding savings and investment assets, intended to support retirement.

Quarterly

Occurring or done every three months.