The supply of Eurodollar deposits is the result of
A)Federal Reserve Board policy
B)World Bank policy
C)a resolution of the member governments of the Organization of Economic Cooperation and Development OECD
D)depositors holding dollars in non-US banks

Question

Quizplus · Accepted Answer

Eurodollar deposits are created when depositors holding US dollars outside of the United States deposit them into banks located in countries like Luxembourg, Switzerland, or the Cayman Islands. Therefore, the supply of Eurodollar deposits is the result of depositors holding dollars in non-US banks. The other options listed are not directly related to the creation of Eurodollar deposits.

The Supply of Eurodollar Deposits Is the Result of