LOS e, (Part 1): Describe the characteristics of the Eurodollar time deposit market.
Q1. Which of the following statements regarding Eurodollar time deposits is FALSE?
A) Rates are quoted as an add-on yield.
B) They are available in Switzerland.
C) Sometimes the best rates are available in New York City.
Q2. Eurodollar time deposits are:
A) priced at a discount.
B) denominated in U.S. dollars (USD).
C) actively traded in the secondary market.
Q3. Which of the following statements regarding Eurodollar time deposits is FALSE?
A) Euro denominated deposits at large banks in the U.S. are Eurodollar accounts.
B) USD denominated deposits in large banks in Tokyo are Eurodollar accounts.
C) U.S. dollar (USD) denominated deposits at large banks in London are Eurodollar accounts.
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