a currency issued by European Monetary Union
Incorrect Answer time deposits denominated in U.S. dollars and held in banks outside of the United States.
Correct AnswerU.S. dollars circulating In Europe
Incorrect AnswerEuropean currencies exchanged for the U.S. dollar in U.S.
Incorrect AnswerExplanation:
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. Dollar-denominated deposits not subject to U.S. banking regulations were originally held almost exclusively in Europe (hence, the name eurodollar).
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By: Kamal Kashyap