The lower borrowing costs in the Eurocurrency market as compared to Canada are often attributed to:

Question

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The lower borrowing costs in the Eurocurrency market are often attributed to smaller overhead costs and the absence of reserve requirements abroad. These factors allow Eurocurrency lenders to offer lower interest rates compared to domestic lenders. Factors such as inflation and money growth also contribute to interest rates, but in this case, the absence of regulatory costs plays a more significant role.

The Lower Borrowing Costs in the Eurocurrency Market as Compared