Which one of the following terms best describes Eurodollars?

A) Dollar-denominated deposits only in European banks.
B) Dollar-denominated deposits at branches of foreign banks in the U.S.
C) Dollar-denominated deposits at foreign banks and branches of American banks outside the U.S.
D) Dollar-denominated deposits at American banks in the U.S.
E) Dollars that have been exchanged for European currency.

Eurodollars

Deposits denominated in U.S. dollars at banks outside the United States, thus not subject to U.S. banking regulations.

Dollar-denominated Deposits

Bank deposits made in U.S. dollars rather than the local currency, often used in international trade or by investors seeking currency stability.

European Banks

Financial institutions based in Europe, playing significant roles in the European and global economy through various banking services.