A London exporting firm's dollar-denominated checking account in a New York bank __________ of the eurodollar market; a London exporting firm's dollar-denominated checking account in a London bank __________ of the eurodollar market.

Question

Quizplus · Accepted Answer

The eurodollar market refers to dollars deposited outside of the United States; essentially, it is the market for dollar-denominated deposits outside of the U.S. Since the London exporting firm's dollar-denominated checking account in a New York bank is outside of the U.S., it would be considered a component of the eurodollar market. However, a London exporting firm's dollar-denominated checking account in a London bank would not count as a component of the eurodollar market, as it is located within the U.K.

A London Exporting Firm's Dollar-Denominated Checking Account in a New