1) Eurocurrency markets serve two valuable purposes: 1) Eurocurrency deposits are an efficient and convenient money market device for holding excess corporate liquidity; and 2) the Eurocurrency market is a major source of short-term bank loans to finance corporate working capital needs, including the financing of imports and exports

2) Eurobank is a A) bank incorporated in the European Union. B) financial intermediary that simultaneously bids for time deposits and makes loans in a currency other than that of its home currency. C) a department of a large commercial European bank making loans in Euros. D) All of the above are true.

3) LIBOR is A) insignificant interest rate for global financial markets' operation. B) Madrid and Paris Interbank Offered Rate. C) published by British Bankers Association (BBA) once per year. D) adjusted average of estimated borrowing rates in the unsecured interbank market.