Question

State whether the following statements are true or false.

Statements	​True/False
Eurodollars are U.S. dollars deposited in U.S. banks.	▼ False True
All the bonds denominated in euros are called Eurobonds.	▼ False True
Eurocurrencies are similar to​ short-term Eurobonds.	▼ False True

Answer 1

Eurodollars are U.S. dollars deposited in U.S. banks.

FALSE

Eurodollars are U.S. dollars deposited in foreign banks (In banks other than the U.S. banks.)

Example: Eurodollars are U.S. dollars deposited in an Indian bank.

All the bonds denominated in euros are called Eurobonds.

FALSE

Eurobonds are the bonds that are denominated in a currency other than the currency of the country in which it is issued.

Example: U.S. dollar denominated bond issued in Japan is a eurobond.

Eurocurrencies are similar to​ short-term Eurobonds.

FALSE

Eurocurrencies are similar to Eurobonds.

Eurocurrencies are currencies held in a foreign bank.

Example: U.S. dollar held in an European bank