Question

Jackson Drilling Company (JDC) is a U.S. multinational firm that conducts business and holds funds throughout Europe and Asia. To support its Asian operations, Marshall has deposited several million U.S. dollars in a Tokyo bank. This is an example of: a. A money market mutual fund b. A Eurodollar deposit c. A certificate of deposit d. A banker's acceptance e. A commercial paper

Answer 1

Answer:

The correct answer is letter "B": An Eurodollar deposit.

Explanation:

A Eurodollar deposit refers to the act of depositing large amounts of money outside the U.S. most of the time to avoid levies and responsibilities. The deposits are not necessarily sent to European countries, it could be anywhere around the world. Most preferred destinations are the Bahamas and Cayman Islands which are considered tax havens.