3 18.10 International Investment If financial markets are perfectly competitive and the Eurodollar rate is above that offered in the U. S. loan market, you would immediately want to borrow money in the United States and invest it in Eurodollars. True or false

False

Explanation:

Based on the information given, the statement that "If financial markets are perfectly competitive and the Eurodollar rate is above that offered in the U.S. loan market, one would borrow money in the United States which will then be invested in Eurodollars is incorrect.

When the financial markets are perfectly competitive, it should be noted that the difference between the Eurodollar rate and the rate in the United States will be as a result of the differences in the government regulations and risk and hence, speculation wont be beneficial. Therefore, the answer is false.

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forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.