Which One of the Following Does NOT Cause Eurocurrency Spreads

question 25

Multiple Choice

Which one of the following does NOT cause eurocurrency spreads to be narrower than in domestic money markets?

• A)Eurobanks don't have to maintain reserves on Eurodollar deposits
• B)Eurobanks face lower regulatory expenses
• C)national banks are often required to lend money to certain borrowers at concessionary rates
• D)U.S.Federal Reserve bank regulations to cap interest rates charged on loans in the U.S.

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