Eurodollars Are

question 83

Multiple Choice

Eurodollars are

• A) the exchange value of the dollar with the euro.
• B) used to pay for imports from Europe.
• C) dollars banked outside of the United States.
• D) the exchange buffer that the euro has against dollar.

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Definitions:

Discounting

The process of determining the present value of future cash flows by applying a discount rate.

Compounding

The process in which the value of an investment increases because the earnings on an investment, both capital, and interest, earn interest as time passes.

Simple Interest

Interest calculated only on the principal amount of a loan or deposit, without compounding.

Note Payable

A formal written agreement to pay a specified amount of money, including interest, by a certain date, recorded as a liability on the balance sheet.