the economics of money, banking, and financial markets

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3. 
   

   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
   Answer: A
   Diff: 1 Type: MC Page Ref: 261
   Skill: Recall
   Objective List: 11.7 Examine International Banking

   
   


4. 
   

   The main center of the Eurodollar market is ____.
   A) London
   B) Basel
   C) Paris
   D) New York
   Answer: A
   Diff: 1 Type: MC Page Ref: 261
   Skill: Recall
   Objective List: 11.7 Examine International Banking

   
   


5. 
   

   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
   Answer: A
   Diff: 1 Type: MC Page Ref: 261
   Skill: Recall
   Objective List: 11.7 Examine International Banking

   
   


6. 
   

   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
   Answer: B
   Diff: 1 Type: MC Page Ref: 261
   Skill: Recall
   Objective List: 11.7 Examine International Banking