Describe how the Eurodollar market's early growth was spawned by the Cold War between the United States and the U.S.S.R
What will be an ideal response?
During the Cold War, the Soviets feared the United States might confiscate dollars placed in American banks if the events were to escalate. So, Soviet dollars were placed in Europeans banks, outside the jurisdiction of the United States.
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We have achieved production efficiency if we can produce more of one good without producing less of some other good
Indicate whether the statement is true or false
One should expect the forward exchange market to flourish
A) under a fixed exchange rate regime. B) under a flexible exchange rate regime. C) under neither fixed nor flexible exchange rate regimes. D) under both fixed and flexible exchange rate regimes. E) only under a gold standard.
When the staff of the account manager at the Fed's Open Market Trading Desk analyzes forecasts on Treasury deposits and information on the timing of future Treasury sales of securities, what agency does it interact with?
A) The Securities and Exchange Commission B) The Treasury's Office of Government Finance C) The Treasury's Office of Federal Reserve Relations D) The Federal Deposit Insurance Corporation
MC increases because
A) MC naturally increases as the firm nears capacity. B) labor is paid overtime wages when volume increases. C) in the short run, MC always increases. D) the law of diminishing returns takes effect.