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Question 5

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Use the following information to answer questions
General Motors, a U.S. firm, withdraws $100 million from Bank of America in New York and deposits $100 million with Eurobank X in the Bahamas. Then, Eurobank X deposits $100 million in Eurobank Y in Switzerland. A Swiss Chocolate, Inc. borrows $100 million from Eurobank Y to finance a new plant construction.
-At the end, the net deposits of the Eurodollar market would be ________.


A) $100 million
B) $200 million
C) $300 million
D) $400 million

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