Banking and Securitization Techniques Quiz
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Questions and Answers

What does a bank assume when it lends money?

  • Market risk
  • Liquidity risk
  • Operational risk
  • Credit risk (correct)

What is securitization in the context of banking?

  • Creating loans and selling them as bond issues (correct)
  • Acquiring other financial institutions
  • Selling off physical assets
  • Investing in government securities

In finance, what do eurocurrencies refer to?

  • Digital currencies like Bitcoin
  • Currencies used in international trade
  • Currencies issued by European Union countries only
  • Currencies held as deposits outside their country of issue (correct)

What is the Euromarket in commerce associated with?

<p>Trading of goods and services within the EU (C)</p> Signup and view all the answers

Where did many developments that led to today’s international marketplace for money originate?

<p>London (B)</p> Signup and view all the answers

What was London's role immediately after the Second World War?

<p>Capital raising hub for large-scale overseas investments (C)</p> Signup and view all the answers

What boosted the Euromarkets significantly in the early 1970s?

<p>The oil crisis (A)</p> Signup and view all the answers

Where were the dollars held that formed the basis of the international market in London?

<p>Eurodollars (C)</p> Signup and view all the answers

What financial instruments were created through the recycling of dollars as loans to borrowers?

<p>Eurodollar bonds (B)</p> Signup and view all the answers

Which institution largely allowed the Euromarkets to develop unhindered?

<p>Bank of England (B)</p> Signup and view all the answers

What type of market boomed in 1975 following the development of Eurodollars and Eurodollar bonds?

<p>Eurobond market (D)</p> Signup and view all the answers

What feature was observed in the development of the banks involved in the Euromarkets?

<p>Increased innovation in financial instruments (D)</p> Signup and view all the answers

Which international center, other than London, is mentioned as having markets for Euromarkets?

<p>Singapore (B)</p> Signup and view all the answers

Which bank is given as a counter-example to the idea that most successful players in the London market are foreigners?

<p>Barclays Capital (A)</p> Signup and view all the answers

What type of banks emerged from a round of mega-mergers around the new millennium?

<p>Universal banks (D)</p> Signup and view all the answers

Which investment bank is classified in the text as a 'pure' investment bank?

<p>Morgan Stanley (B)</p> Signup and view all the answers

Which bank acquired the famous trading firm of Salomon Brothers, according to the text?

<p>Citigroup (D)</p> Signup and view all the answers

In the context of Euromarkets, which countries are highlighted as major participants in the London market?

<p>US, Germany, and Switzerland (B)</p> Signup and view all the answers

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