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Often Eurodollar Deposits Earn Higher Returns Than U

Question 19

Multiple Choice

Often Eurodollar deposits earn higher returns than U.S.bank deposits for all of the following reasons except:


A) Eurodollar deposits are not subject to U.S.reserve requirements
B) The bank does not have to pay deposit insurance premiums on these deposits
C) Regulatory compliance may be more costly for a foreign bank than a U.S.bank
D) Taxes on the profits at foreign banks may be lower than those for U.S.banks, allowing for higher returns

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