Question

Interest spreads in the eurocurrency market are small for many reasons EXCEPT: Eurocurrency loans are secured loans. Eurocurrency deposits and loans are made in amounts of $500,000 or more on an unsecured basis. The eurocurrency is a wholesale market. Borrowers are usually large corporations or government entities

Answer 1

Eurocurrency loans are secured loans

Step-by-step explanation:

Base on the scenario been described in the question, all other interest spread are small for eurocurrency with only eurocurrency loans are secured loans which is not small for the spread of interest in eurocurrency. Normally, the rates on eurocurrency loans are lower than that of those in the domestic or local market of country for reasons which are essentially the same.