Eurodollars refers to dollar deposits when the depository bank is located in

Question

Quizplus · Accepted Answer

Eurodollars refer to dollar deposits that are held in banks outside of the United States. The term "Euro" here is not referring to the European continent or the European Union, but rather to the fact that these deposits are denominated in US dollars but held outside of the US. Therefore, options A and B are not accurate as they suggest that the depository bank must be located in Europe. Option D is also incorrect as it suggests that Eurodollars can be deposited in US banks, which is not the case. Only option C accurately describes where Eurodollars are held.

Eurodollars Refers to Dollar Deposits When the Depository Bank Is