Q406
The type of market in which Eurodollar are traded is classified as
A.
brokerage market
B.
contraction market
C.
expansion market
D.
Eurodollar market
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The type of market in which Eurodollar are traded is classified as Eurodollar market. The term eurodollar refers to U.S. dollar-denominated deposits at foreign banks or at the overseas branches of American banks. Because they are held outside the United States, eurodollars are not subject to regulation by the Federal Reserve Board, including reserve requirements.