When lending or borrowing occurs in a currency that is not the domestic currency of the country where the transaction takes place,the transaction is said to have taken place in the:
A)eurocurrency market.
B)foreign market.
C)domestic market.
D)foreign exchange market.

Question

Quizplus · Accepted Answer

The eurocurrency market refers to the market where lending and borrowing occurs in a currency that is not the domestic currency of the country where the transaction takes place. It is called the eurocurrency market because it originated in Europe, but now includes transactions denominated in currencies from all over the world. The other choices are not correct because the foreign market and domestic market do not specifically refer to lending and borrowing in foreign currencies, and the foreign exchange market is where currencies are bought and sold, but not necessarily lent or borrowed.

When Lending or Borrowing Occurs in a Currency That Is