Asked by Sterline Pierre on May 18, 2024
Verified
Which of the following best describes Eurodollars?
A) European investments in U.S. companies
B) U.S. investment in European companies
C) U.S. dollars deposited in foreign banks
D) Euros deposited in U.S. banks
Eurodollars
U.S. dollars deposited in banks in other countries.
Foreign Banks
Banks that are based in a country different from where they provide services or conduct operations.
- Familiarize yourself with the notion and effect of Eurodollars and Eurobonds in the international financial landscape.
Verified Answer
JD
John David DelfinMay 20, 2024
Final Answer :
C
Explanation :
Eurodollars are U.S. dollars that are deposited in foreign banks, usually in countries outside of the United States and Europe. The term "Euro" in Eurodollars refers to the fact that these deposits were initially made in Europe, but now can be made in any country.
Learning Objectives
- Familiarize yourself with the notion and effect of Eurodollars and Eurobonds in the international financial landscape.
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