Of the following, which was NOT cited by the authors as a valuable function provided by the Eurocurrency market?
A) Eurocurrency deposits are an efficient and convenient money market device for holding excess corporate liquidity.
B) Eurocurrency deposits are a tool used by the Federal Reserve to regulate the money supply of countries that peg their currency against the U.S. dollar.
C) The Eurocurrency market is a major source of short-term bank loans to finance corporate working capital needs.
D) All of the above were cited by the authors.

Question

Quizplus · Accepted Answer

The authors did not cite Eurocurrency deposits as a tool used by the Federal Reserve to regulate the money supply of countries that peg their currency against the U.S. dollar. Therefore, option B is the correct answer. Option A and C were cited by the authors as valuable functions provided by the Eurocurrency market. Option D is incorrect as all options were not cited by the authors.

Of the Following, Which Was NOT Cited by the Authors