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</p> Signup and view all the answers

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

    <p>London</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</p> Signup and view all the answers

    What boosted the Euromarkets significantly in the early 1970s?

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

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

    <p>Eurodollars</p> Signup and view all the answers

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

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

    Which institution largely allowed the Euromarkets to develop unhindered?

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

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

    <p>Singapore</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</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</p> Signup and view all the answers

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

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

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

    <p>Citigroup</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</p> Signup and view all the answers

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