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Question
General Motors, a U.S. firm, withdraws $100 million from Bank of America in New York and deposits $100 million with Eurobank X in the Bahamas. Then, Eurobank X deposits $100 million in Eurobank Y in Switzerland. A Swiss Chocolate, Inc. borrows $100 million from Eurobank Y to finance a new plant construction.
At the end, the net deposits of the Eurodollar market would be ________.
a. $100 million
b. $200 million
c. $300 million
d. $400 million
Answer
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Related questions
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