Risk averse people
A) will never hold bonds denominated in several different currencies because of transaction costs.
B) will always hold bonds denominated in several different currencies because of transaction costs.
C) may hold bonds denominated in several different currencies.
D) may hold bonds denominated in several different currencies only if satisfying the well known interest party condition.
E) will hold only domestic bonds because of the home bias effect.
C
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An increase in the monetary base that goes into ________ is not multiplied, while an increase that goes into ________ is multiplied
A) deposits; currency B) excess reserves; currency C) currency; excess reserves D) currency; deposits
Margin requirements on stocks are set by
A) the New York Stock Exchange. B) the National Association of Securities Dealers. C) the Federal Reserve System. D) the Securities Exchange Commission.