Question

Eurodollars are _________. A. dollar denominated deposits at any foreign bank or foreign branch of an American bank B. dollar denominated bonds issued by firms outside their home market C. currency issued by Euro Disney and traded in France D. dollars that wind up in banks as a result of money laundering activities

Answer 1

Answer:

A. dollar denominated deposits at any foreign bank or foreign branch of an American bank

Explanation:

• Are dominations deposited in US dollars in banks that are outside the united states thus are not under the rule or jurisdiction or federal laws. The eurodollar rate is also known as the LIBOR rate is equal to the base rate adjusted by minimum reserve requirements.

• The eurodollar market accounts for a higher rate of interest, greater the flexibility of the maturities and has a wider range of investment in the qualities.
• It has roots in WW2 when the US gave funds from the marshall plan to rebuild the European continent.