ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Eurocurrency
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Eurodollar
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Euroyen
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Europound
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Detailed explanation-1: -The term eurocurrency refers to currency deposits held at banks outside of their country of origin. The most famous example of eurocurrency is the eurodollar, which involves U.S. dollar (USD) deposits held outside the United States.
Detailed explanation-2: -The Eurodollar is considered to be the initial origin of Eurocurrency. The Eurodollar was initially a term that refers to how USD was deposited in banks in Europe, especially London. European banks held a lot of USD after World War II, as the United States provided financial aid to Europe.
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: -Understanding the Euromarket A eurocurrency is any currency held or traded outside its country of issue.
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.