The lower borrowing costs in the Eurodollar market as compared to the U.S. are often attributed to

Question

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The lower borrowing costs in the Eurodollar market can be attributed to the absence of a compensating balance requirement and smaller overhead costs. Compared to the U.S., borrowing in the Eurodollar market is less costly due to the absence of regulatory burdens and requirements. This allows borrowers to access funds at lower interest rates, making it a more attractive option for global borrowers.

The Lower Borrowing Costs in the Eurodollar Market as Compared