Lowering the Cost of Capital
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Questions and Answers

Which of the following is a benefit of a global capital market for borrowers?

  • A larger pool of investors (correct)
  • Lower interest rates
  • Strict regulations
  • Limited liquidity

What is the Eurocurrency market?

  • Any currency banked outside of its country of origin (correct)
  • A market for European currencies only
  • A market for Eastern European currencies only
  • A market for US dollars only

What was the main factor that allowed the international capital market to bloom?

  • Limited liquidity
  • Information Technology and Deregulation (correct)
  • Small pool of investors
  • Strict regulations

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