Which of the following is a major benefit of international lending?
A. It requires reducing restrictive international trade practices in the lending and the borrowing countries.
B. It allows some lenders to shift their lending to foreign borrowers who are willing to pay higher interest rates on the loans..
C. It eliminates exchange rate risk in financial activities.
D. It allows both small countries and large countries to apply similar levels of optimal taxes on the international loans.
Answer: B
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If the gadget industry is a constant cost industry, one would expect that the long run result of an increase in demand for gadget to include ____ firms and a(n) ____ in price. a. more; increase
b. more; no change. c. more; decrease. d. fewer; increase.
The South's economy was based on production of
A. iron, steel and textiles. B. corn, wheat and soybeans. C. tobacco, cotton and rice. D. iron, wheat and cotton.
Suppose Bob withdraws money from his checking account and deposits it into his savings account. What happens to M2?
A. It decreases. B. It increases. C. It stays the same. D. The effect is unknown.
Banks do NOT need to keep all of their deposits on hand as reserves because
A. they can always generate new reserves through the money creation process. B. only a fraction of deposits are withdrawn at any one time. C. FDIC protects banks from excessive withdrawal demands. D. there is too much risk of bank robberies.