Use the Following Information to Answer Questions

question 48

Multiple Choice

Use the following information to answer questions
General Motors, a U.S. firm, withdraws $100 million from Bank of America in New York and deposits $100 million with Eurobank X in the Bahamas. Then, Eurobank X deposits $100 million in Eurobank Y in Switzerland. A Swiss Chocolate, Inc. borrows $100 million from Eurobank Y to finance a new plant construction.
-At the end, these transactions would make the gross deposits in the Eurodollar market to be _______.

• A) $100 million
• B) $200 million
• C) $300 million
• D) $400 million

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Definitions:

Insurance Policy

A contract between an insurer and a policyholder in which the insurer agrees to compensate the policyholder for specific losses in exchange for a premium.

Adjusting Entry

A journal entry made at the end of an accounting period to record unpaid expenses or revenues that have accrued, ensuring the accounts reflect the true financial position.

Purchased

Acquired goods or services in exchange for money or other compensation, indicating a transaction where ownership changes hands.

Payroll

Payroll is the total sum of all compensation a business must pay to its employees for a set period or on a given date, including salaries, wages, bonuses, deductions, and withholdings.