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Answer Posted / sunil tyagi
eurodllars are basically the dollar denominated deposits
which are outside the US or in foreign branches of american
banks.these are the dollars which escape the regulation of
federal reserve.initially these dollar denominated deposits
were in europe and hence wre known as eurodollars, nowdays
theses eurodolars are also in some other countries and but
mainly are known as eurodollars.as these are escape the
federal reserve so banks can trade on them with narrower
margin.
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