CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

When there is demand for a sovereign issuer's bonds, but not in the sovereign's local currency, the national government may issue ______.

A. domestic bonds
B. foreign bonds
C. Eurobonds
Correct Answer: B

The national government will most likely issue bonds in foreign currency.

User Contributed Comments 2

User Comment
dbedford I thought a foreign bond was a foreign country issuing a bond in the domestic country's currency.

So how is B correct when the people don't want the domestic country's currency?

A Eurobond is issued domestically in a foreign country's currency so the answer should be C
khalifa92 its domestic when its issued in the same currency by a company in the same country.
but its foreign if issued to a different country in their currency.
and if its outside the country of issue in the country of issue's currency; eurobond.
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