Asked by Kaiulani Waikiki on Jun 26, 2024
Verified
Which of the following is the best definition of Eurobond.
A) Money deposited in a financial centre outside of the country whose currency is involved.
B) International bonds issued in multiple countries but denominated in a single currency (usually the issuer's currency) .
C) Banks that make loans and accept deposits in foreign currencies.
D) The implicit exchange rate between two currencies (usually non-U.S.) quoted in some third currency (usually the U.S. dollar) .
E) Second borrower in currency swap. Counterparty borrows funds in currency desired by principal.
Eurobond
A bond issued in a currency other than the home currency of the country or market in which it is issued, often not subject to the regulations of a single country.
International Bond
A bond issued in a country by a non-domestic entity, often in a currency other than that of the issuer's country.
- Gain insight into the attributes and purpose of Eurobonds and Eurocurrency in the domain of worldwide finance.
Verified Answer
KM
kokilaben mehtaJun 28, 2024
Final Answer :
B
Explanation :
Eurobonds are international bonds issued in multiple countries but denominated in a single currency, often the currency of the issuer. This allows issuers to raise capital in a foreign currency more easily.
Learning Objectives
- Gain insight into the attributes and purpose of Eurobonds and Eurocurrency in the domain of worldwide finance.