Eurodollars are U.S. dollars that are deposited in banks outside of the United States, and they can be borrowed by anyone who wishes to hold U.S. dollars. They are not converted into any other currencies and can be redeemed at any bank that accepts them, not just U.S. banks or their branches in foreign countries.

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Eurodollars

Question 113

Multiple Choice

Eurodollars

A) can only be redeemed at U.S. banks or their branches in European countries.
B) are U.S. dollars that have been converted into several European currencies.
C) may be borrowed by anyone who wishes to hold U.S. dollars.
D) can only be redeemed at U.S. banks or their branches in any foreign country.

Correct Answer: