Eurodollar deposits are U.S. dollar deposits held in banks outside the United States, and they are not subject to U.S. banking regulations. This allows for more flexibility in terms of interest rates and loan structures.

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Eurodollar Deposits

Question 12

Multiple Choice

Eurodollar deposits

A) are European deposits in dollars in the United States
B) are dollar deposits outside the United States subject to U.S. regulations
C) are deposits in U.S. banks outside the U.S. regulations
D) are U.S. dollar deposits outside the U.S. and not subject to U.S. regulations

Correct Answer: