Question

Write short notes on Euro Currency Market.

Answer 1

The eurocurrency market is the money market in which currency held in banks outside of the country where it is legal tender is borrowed and lent by banks. The eurocurrency market is utilized by banks, multinational corporations, mutual funds and hedge funds that wish to circumvent regulatory requirements, tax laws and interest rate caps often present in domestic banking, particularly in the United States. The term eurocurrency has nothing to do with the euro currency or Europe, and the market functions in many financial centers around the world

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