You need to answer every question. The last tutor didn\'t answer completely and

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You need to answer every question. The last tutor didn't answer completely and he is now on probabtion because i complaint about him also gave negative rating. Please only answer if you are going to answer all questions.

In the Euromarket a nonbank borrower is expected to pay a _________________ of _______________ over __________________

Discount, ¼ % Libor

Premium, ¼ % Libor

Discount, ¼ % Libid

Premium, ¼ % Libid

Discount, ½ % Libid

Euro Commercial Paper (ECP):

Is exempt from maturity restrictions

Is exempt from use-of proceeds restrictions

Is offered in bearer form

A, B and C

A and C

The Eurocurrency marker is:

Informal

Unregulated

Over the counter

None of the above are true

All of the above are true

The original Eurodollar depositors included:

The Soviet Union

England

France

Eastern-bloc countries

A and D

Banks will charge the _____________ price for selling a currency to its customers and pay the ___________ price for buying a currency from its customers

Bid, ask

Ask, bid

Binding, forward

Forward, binding

Bid, forward

Some syndicated loans use deliveries to protect borrowers and lenders from interest rate risk.

TRUE or FALSE

Over subscribed loan participants are prorated among interested participating banks.

TRUE or FALSE

When a syndicated loan is over subscribed, the borrower will have to make with a lower amount.

TRUE or FALSE

After signing the loan agreement, lead banks usually wait three months before collecting management fees.

TRUE or FALSE

Syndicated loans are kept on banks’ books because they are fairly illiquid.

TRUE or FALSE

For relatively unknown companies, sums raised through syndicated lending tend to be smaller than borrowing directly from large commercial banks.

TRUE or FALSE

Explanation / Answer

ECPs are short-term unsecured notes issued by corporates. The borrowing is limited to up-to 270 days by law. It is exempt from maturity, offered in bearer form and use-of-proceeds restrictions.

Thus, the correct answer is “A, B and C”.

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