6. Which of the following statements is incorrect related to Eurocurrency market?

a. The Eurodollar market was created as corporations in the United States deposited U.S. dollars
in
European banks
b. The growth of the Eurodollar market was stimulated by U.S. regulations in 1968, which limited
foreign lending by U.S. banks.
c. Eurodollar deposits were not subject to reserve requirements.
d. The Eurocurrency market is composed of several large banks (referred to as Euro banks) that
accept loans and provide deposits in various currencies.

7. Countries in the OPEC also use the Eurocurrency market to deposit a portion of their petroleum
revenues. OPEC stands for ___________________.
a. Organization of Petroleum Exporting Countries
b. Organized Petroleum Exporting Countries
c. Organized Petroleum Exporters Cooperation
d. Organization of Petroleum Exporters Cooperation

8. Although the Eurocurrency market concentrates on large-volume transactions, at times no

single Euro bank may be willing to provide the amount needed by a particular corporation or
government agency. In this case a ____________ of euro banks may be organized.
a. group
b. joint venture
c. corporation
d. syndicate

9. Which of the following is not a relevant provision of Single European Act?

a. Capital can flow freely throughout Europe.
b. Banks can offer a wide variety of lending, leasing, and securities activities in the EU.
c. Regulations regarding competition, mergers, and taxes are similar throughout the EU.
d. A bank established in any one of the EU countries has the right to expand into any or all of the
other EU countries and Asian countries.

10. Two of the more significant regulatory events allowing for a more competitive global playing
field are ______________.
a. Single Euro Currency Act of 1992 and Basel Accord of 1988
b. Single European Act and Basel Accord
c. Uniform European Act for the banking Industry and Basel Uniform Bank Standards
d. Uniform Currency Act and Basel Uniform Standards