The Eurocurrency market is used by multinational firms for short-term investments and financing and for currency hedging. What is the Eurocurrency market? Usually more attractive rates can be obtained both for investments and financing than in the domestic market of the firm, even in its own currency (i.e. a lower spread between deposit and borrow rates). Why is this? How can a firm hedge currency exposure in the Eurocurrency market? (250 words minimum)