As compared to US certificate of deposit, the interest rate paid on the Eurodollar certificate of deposits is ____________?
Correct answer: A. higher than other one
- A. higher than other one
- B. lower than other one
- C. contraction than other one
- D. expansionary than other one
Explanation
Eurodollar certificates of deposit generally pay higher rates because dollar deposits outside the United States are not subject to the same reserve requirements and deposit-insurance costs. The reduced regulatory burden allows banks to offer a higher return.
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