Definition of Eurodollar

Eurodollar is a deposit held outside of the US denominated in US dollars.

Applying "Eurodollar" to Securities Exams:

Eurodollar deposit may be opened by investors who are looking to earn a higher rate of interest on their cash reserves. Investors may send their cash reserves to banking institutions overseas in an effort to earn a higher rate of interest. Eurodollar deposits may also be held by multi national corporations who are conducting business in a wide variety of countries.

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