Vidyalelo
Management · Q962

Financial Management

Graduate and Post Graduate · Management · question 962

Q962

Financial security issued by banks operating outside U.S is classified as

A.
dollar bonds
B.
euro deposits
C.
Eurodollar market deposits
Answer
D.
euro bonds

Answer: Option C

Solution

Answer: Option C
Solution:
Financial security issued by banks operating outside U.S is classified as Eurodollar market deposits. Eurodollars are time deposits denominated in U.S. dollars at banks outside the United States, and thus are not under the jurisdiction of the Federal Reserve.