Eurocurrency Markets Serve Two Valuable Purposes

question 28

True/False

Eurocurrency markets serve two valuable purposes: .1) Eurocurrency deposits are an efficient and convenient money market device for holding excess corporate liquidity; and 2) the Eurocurrency market is a major source of short-term bank loans to finance corporate working capital needs, including the financing of imports and exports.

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Definitions:

Serial Bonds

Bonds that mature at different dates, allowing the issuer to spread out the repayment over time.