Ⅳ.Reading Comprehension (20%)
A.Read the passage and answer the questions.
The Euromarkets are international money and capital markets; they are concerned with Eurocurrencies, that is, currencies traded in Europe (and elsewhere) outside their home countries. The most important Eurocurrency is the Eurodollar. The Eurodollar market developed in the second half of the 1950s. When the London banks, during the sterling crisis of 1957, were prohibited from using sterling funds to finance non-British trade, they offered high interest rates to attract dollars deposits from both non-American and American holders of dollars. The Eurodollar market was given another major boost when the American Federal Reserve Board placed limits on deposits interest rates in the United States. To avoid these restrictions, dollar deposits were transferred from banks in the United States to European banks and to the foreign branches of American banks, mainly those in London.
The chief participants in the Euromarkets are the London banks, the overseas branches of American banks and commercial banks on the Continent and in other parts of the world. These banks accept deposits of dollars and other convertible currencies from other banks, including central banks, companies and individuals. The funds thus obtained are traded among the banks and lent out to non-banks, either in the original currency or after having been converted into another currency. Eurocurrency loans involve large sums of money; they may be short-term, medium-term or long-term. Long-term Eurocurrency funds can also be raised by an issue of Eurobonds on the Eurobond market.
26. The Euromarkets are concerned with ____. （ ）
A. currencies B. Eurodollars
C. bonds D. money and capital
27. The Eurodollar market developed ____. （ ）
A. from 1950 to 1959 B. from 1950 to 1955
C. from 1955 to 1959 D. from 1955 till now
28. The Eurodollar market developed rapidly when ____. （ ）
A. the London banks offered high interest rates to attract dollar deposits.
B. the AFRB imposed limits on deposit interest rates in the United States.
C. dollar deposits were transferred from banks in the United States to European banks and to the foreign branches of American banks.
D. All the above
29. ____ play the chief role in the Euromarkets. （ ）
A. Commercial banks
B. The London banks
C. The overseas branches of American banks
D. All the above
30. Eurocurrency funds can be raised by ____. （ ）
A. issuing Eurobonds
B. both large and small sums of money
C. limited loans
D. All of the above
