Companies receive a higher interest rate on deposits and pay less for loans when using the Eurocurrency market.

Question

Quizplus · Accepted Answer

This statement is true. The Eurocurrency market allows companies to access funds at a lower cost than traditional domestic markets, resulting in lower borrowing costs. Additionally, deposits made in the Eurocurrency market often receive higher interest rates due to the global nature and competitiveness of the market.

Companies Receive a Higher Interest Rate on Deposits and Pay