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Which of the Following Is True of a Eurodollar Deposit

Question 34

Multiple Choice

Which of the following is true of a Eurodollar deposit?


A) Eurodollar deposits tend to provide higher yields above nearly all other marketable securities with similar maturities due to the absence of an active secondary market.
B) Eurodollar deposits tend to provide yields above nearly all other marketable securities with similar maturities due to the higher risk.
C) Eurodollar deposits tend to provide yields below nearly all other marketable securities with similar maturities due to their low risk.
D) Eurodollar deposits are nonnegotiable and pay interest only at maturity, hence the yield is higher than on other marketable securities with similar maturities.

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