--%>

Deposit-loan rate spread in Eurodollar -US banking market

Explain, how does deposit-loan rate spread within the Eurodollar market as compared to the deposit-loan rate spread in domestic U.S. banking system and why?

E

Expert

Verified

Deposit-loan spread in Eurodollar market is narrower as compare to that in the domestic U.S. banking system.  It says that, in Eurodollar market deposit rate is higher than deposit rate of the dollars in U.S. banking system and also that the lending rate is low. Eurodollar market may operate at the lower cost than can the U.S. banking system since it is not related to the Federal Reserve Bank reserve requirements on the deposits or FDIC deposit insurance.

   Related Questions in Financial Accounting

  • Q : Super Profit Method in Goodwill Super

    Super Profit Method: (Goodwill method): When a firm earns huge profit in comparison to normal profit (usually earned by other firms of similar industry) then the difference is termed as Super Profit. Goodwill is computed on the basis

  • Q : Digital Image Processing Homework Using

    I am just trying your services to get one very small project done for Digital Image Processing Homework Using Matlab.I need the code and the approach of the code.The Homework is :A. Import a color image.B. Convert color image to gray-level image.C. create

  • Q : Purpose of foreign branch bank Discuss

    Discuss the purpose of the foreign branch bank.

  • Q : Define Factitious Assets Factitious

    Factitious Assets: When any asset that has no market price which asset is termed as factitious assets. This is illustrated as expenditures of capital expenditure. The main illustration of such factitious assets is: Preliminary expenses, discount on is

  • Q : What bid price per widget should you

    You are required to submit a bid to supply 200,000,000 widgets per year to the State of Illinois for the next five years. Your company has an idle tract of real estate that cost $1,500,000 ten years ago; if your company sold the land

  • Q : Find the expected dividend for each of

    Suppose a firm's common stock paid a dividend of $1.75 yesterday. You expect the dividend to grow at the rate of 8% per year for the next 3 years, if you buy the stock, you plan to hold it for 3 years and then sell it.

    Q : Calculating Dixons Retail plc in

    Q : Retail or client market and wholesale

    Distinguish between retail or client market and wholesale or interbank market for foreign exchange?

  • Q : Define status and role Define status

    Define status and role, explain the difference between the two, provide illustrations.

  • Q : Explain accounting equation in brief..

    what is accounting equation? explain accounting equation and explain its importance?