A Eurodollar transaction

Question

Quizplus · Accepted Answer

A Eurodollar transaction involves dollars that are deposited outside of the U.S. Typically, these deposits are made in banks that are located in Europe or other countries outside of the U.S. However, the transaction itself can occur between parties located anywhere in the world. It is important to note that a Eurodollar transaction does not involve the exchange of Euros for dollars, but rather the use of dollar-denominated accounts that are held outside of the U.S.

A Eurodollar Transaction