ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Eurocurrency is currency held on deposit by governments or corporations operating outside of their home market. For example, a deposit of U.S. dollars (USD) held in a British bank would be considered eurocurrency, as would a deposit of British Pounds (GBP) made in the United States.

Detailed explanation-2: -The eurocurrency market is the money market for currency outside of the country where it is legal tender. The eurocurrency market is utilized by banks, multinational corporations, mutual funds, and hedge funds.

Detailed explanation-3: -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.

Detailed explanation-4: -A eurobank is a financial institution that accepts deposits and makes loans in foreign currencies.

Detailed explanation-5: -Eurocredit refers to a loan whose denominated currency is not the lending bank’s national currency. The concept is closely linked to that of eurocurrency, which is any currency held or traded outside its country of issue.