Explain why a London Eurobank has a competitive advantage over a bank in New York in attracting dollar deposits
What will be an ideal response?
It can pay more because the London bank is not subject to any reserve requirements (neither American nor British), whereas the New York bank is subject to U.S. reserve requirements.
You might also like to view...
The reason that the coffeehouse market is monopolistically competitive rather than perfectly competitive is because:
Lack of formal training or education, by itself, is a very significant cause of poverty
Indicate whether the statement is true or false
Which of the following is NOT necessarily true in a market equilibrium?
A. Both rich and poor have adequate access to the good. B. All mutually beneficial trades have been made. C. Price represents the cost of an extra unit of production. D. Price represents the value of an extra unit of consumption.
Refer to the information provided in Table 23.8 below to answer the question(s) that follow. Table 23.8
Refer to Table 23.8. If aggregate output equals ________, there will be a $200 million unplanned decrease in inventories.
A. $3,000 million B. $4,000 million C. $5,000 million D. $6,000 million