The Eurocurrency market is a market for short-term bank deposits denominated in U.S. dollars or other easily convertible currencies.

Question

Quizplus · Accepted Answer

The statement is true. The Eurocurrency market is an international financial market where banks and corporations can deposit, lend, or borrow money in a currency other than the currency of the country where the market is located. The most common currencies traded in this market include the U.S. dollar, euro, yen, and pound sterling. This market is typically used for short-term lending or borrowing, and it operates outside the jurisdiction of any single regulatory body.

The Eurocurrency Market Is a Market for Short-Term Bank Deposits