Which One of the Following Was NOT a Cause for the Creation

question 6

Multiple Choice

Which one of the following was NOT a cause for the creation of the Eurodollar market?

• A)reserve requirements that lower a bank's profits
• B)special charges and taxes levied on domestic banking transactions
• C)interest rate ceilings on deposits and loans
• D)the lack of a requirement to hold a fractional reserve at the Federal Reserve of all deposits

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Current Obligations

Short-term financial liabilities or debts that are due within one year or within the normal operating cycle of a business.

Firm's Operations

The day-to-day activities involved in the running of a business for the purpose of producing value for the stakeholders.

Quick Ratio

An indicator of a firm's capacity to fulfill its immediate liabilities using its most easily convertible assets.