Which of the Following Statements Is Most Correct

question 77

Multiple Choice

Which of the following statements is most correct?

• A) Eurodollars are deposits placed in U.S. banks that remain denominated in foreign currencies.
• B) Treasury bills are rarely traded in secondary money markets.
• C) The most common trading unit for federal funds is $1 million.
• D) Federal funds are used most often by firms to finance inventories.

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Definitions:

Located Close

The condition or state of being situated near a specific point of interest or within a short distance of a particular location.

Single Firm

A business or company that operates independently without affiliations to parent or subsidiary entities.

Rivalry Among Firms

Describes competition between businesses in the same industry aimed at gaining increased market share, revenues, and customer loyalty.

Customers Locked

A situation where customers are bound to a service or product, often through contracts, making it difficult for them to switch to competitors.