1) Deposits in European banks denominated in dollars for the purpose of international transactions are known as
A) Eurodollars.
B) European Currency Units.
C) European Monetary Units.
D) International Monetary Units.
2) The main center of the Eurodollar market is
A) London.
B) Basel.
C) Paris.
D) New York.
3) Eurodollars are
A) dollar dominated deposits held in banks outside the United States.
B) deposits held by U.S. banks in Europe.
C) deposits held by U.S. banks in foreign countries.
D) dollar dominated deposits held in U.S. banks by Europeans.
4) Reasons for holding Eurodollars include
A) the fact that Eurodollar deposits are insured by the FDIC.
B) the fact that dollars are widely used to conduct international transactions.
C) the fact that minimum transaction sizes are very low, making Eurodollars an attractive savings instrument for consumers.
D) the fact that Eurodollar deposits are heavily regulated.