Question 1) Which of the following is NOT a factor that has contributed to increased financial market integration? new technology the fall of communism financial deregulation relaxation of capital controls   Question 2 ‘Securitisation’ refers to: the deregulation of securities houses banking deregulation selling off public assets by listing on a securities exchange raising capital by issuing securities   Question 3 The global financial crisis of the 21st century is more complex than earlier crises as: financial innovation allowed the creation of complex assets which were hard to value financial innovation allowed the creation of complex assets whose risk profiles were hard to assess it spread more quickly from the US to other countries all of the answers given   Question 4 One reason for the US housing bubble in the early 2000s was the low interest rate policy of the US Federal Reserve, which: distorted interest rates and asset prices diverted funding into wrong instruments motivated a shift away from fixed rate loans in favour of adjustable rate loans all of the answers given       Question 5 Securitisation has the following benefits provides for an efficient use of capital facilitates the sale of risk to investors with an appetite for risk lowers borrowing costs all of the answers given   Question 6 Eurocurrencies are: deposits with European banks short-term assets and liabilities denominated in currencies other than those of the country in which they are located short-term assets and liabilities denominated in European currencies currencies of European countries   Question 7 A Eurodollar deposit is: a non-US dollar deposit with a European bank a US dollar-denominated deposit with a US bank a US dollar-denominated deposit with a bank located outside the US a US dollar-denominated deposit with a European bank   Question 8 The relationship between Eurobanking and international banking is that: Eurobanking is more diverse functionally international banking is more geographically diverse than Eurobanking international banking encompasses Eurobanking they are the same             Question 9 The operations of Eurobanks handicap domestic monetary policy because: these operations are not subject to the regulatory measures of the local monetary authorities they are subject to a lower reserve requirement than domestic banks they create money in excessive amounts these operations are primarily international   Question 10 If a bank in London has on its books an Australian dollar deposit, then the deposit is: a Eurocurrency deposit a Eurodollar deposit a Eurodeposit both a Eurodeposit and a Eurocurrency deposit