Question

Which of the following statements is NOT CORRECT?

a. Foreign bonds and Eurobonds are two important types of international bonds.
b. A Eurodollar is a U.S. dollar deposited in a bank outside the U.S.
c. The term Eurobond applies only to foreign bonds denominated in U.S. currency.
d. Any bond sold outside the country of the borrower is called an international bond.
e. Foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold.

Answer 1

b. A Eurodollar is a U.S. dollar deposited in a bank outside the U.S.

Step-by-step explanation:

A Eurodollar is a bond issued by a foreign company in US dollars instead of heir own domestic currency. Eurodollars are issued and redeemable at the foreign country, no the US. It has nothing to do with money deposited in banks outside of the US, since it refers to bonds, not deposits.