Banks charge borrowers a lower interest rate on Eurocurrency borrowings than for borrowings in the home currency.

Name: Banks charge borrowers a lower interest rate on Eurocurrency borrowings than for borrowings in the home currency.
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Question

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The Eurocurrency market lacks government regulation. The lack of regulation allows banks to charge borrowers a lower interest rate for Eurocurrency borrowings than for borrowings in the home currency.

Banks Charge Borrowers a Lower Interest Rate on Eurocurrency Borrowings