The Higher Yields on Eurodollar Deposits Compared with Nearly All

question 302

True/False

The higher yields on Eurodollar deposits compared with nearly all other marketable securities, governmental or nongovernmental, with similar maturities are attributable to (1) the fact that the depository banks are generally less closely regulated than U.S. banks and are therefore more risky, and (2) some foreign exchange risk may be present.

---

Definitions:

New Information

Refers to data or knowledge received or discovered which was previously unknown, often changing understanding or perspective.

Fifth-grade Teacher

A teacher specialized in educating students who are typically in the fifth grade, around 10-11 years old.

Freud

Austrian neurologist known for founding psychoanalysis, a method for treating psychopathology.

Repression

The psychological defense mechanism of unconsciously blocking unpleasant feelings, desires, or experiences from awareness.