A
Eurodollar deposit can be defined as
a deposit of money in United States
dollarplaced with a bank
outside the United States.A deposit
is inten with
a bank for safe keeping and possibly to earn interests on that
deposit.
LIBOR stands forLondon Interbank Offered
Rate. It can be defined as the benchmark interest rate set. It is
charged by the banks defined period of time. It may be for
overnight, one-month, three-month, six-month and
annually.
A
euro deposit can be defined as
a deposit of foreign funds into a
bank that operates as per the European banking system. These
banks function on the consolidation of European currency.
When an external investor deposits foreign currency into one
of these banks, they are technically depositing in euro.