ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is Eurocurrency? Eurocurrency is a currency that is deposited at a foreign bank outside of its home country. Contrary to its name, the term does not refer to euros that are deposited outside of Europe. It is a general term that applies to all currencies that are deposited anywhere outside of its local country.

Detailed explanation-2: -What Is Eurocurrency? 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-3: -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-4: -The market for Euro currency is the money market for currency outside the country where it is a legal tender. Banks, MNC’s, mutual funds, and hedge funds make use of the Eurocurrency market. They want to avoid regulatory standards, tax rules, and interest rate limits that are commonly present in domestic banking.

Detailed explanation-5: -The four main Eurocurrencies are the US dollar, the Euro, the sterling and the Japanese yen; the currencies of the major economies of the world.