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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
Correct Answer:
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Q1: Eurocurrency market is attractive for multinational firms
Q2: In 1981, the Federal Reserves permitted U.S.
Q3: Interest rates on Eurodollar loans may be
Q4: _ is the dollar bank accounts outside
Q6: The Eurocurrency market is a market which:
A)
Q7: Bank of America in Chicago offers _
Q8: In 2010, which currency dominated the Eurocurrency
Q9: Eurobanks can offer _ rate of interest
Q10: Eurobanks operate on a narrower spread in
Q11: A Eurocurrency is:
A) a bank deposit of
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