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Which of the Following Is True of a Eurodollar Deposit

Question 89

Multiple Choice

Which of the following is true of a Eurodollar deposit?


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

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