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Chako Chako
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8 years ago
Risk averse people
A) may hold bonds denominated in several different currencies only if satisfying the well known interest party condition.
B) may hold bonds denominated in several different currencies.
C) will never hold bonds denominated in several different currencies because of transaction costs.
D) will hold only domestic bonds because of the home bias effect.
E) will always hold bonds denominated in several different currencies because of transaction costs.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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8 years ago
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Chako Author
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#2
8 years ago
Correct!
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#3
7 years ago
Good luck
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