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Question
Often Eurodollar deposits earn higher returns than U.S. bank deposits for all of the following reasons except:A. Eurodollar deposits are not subject to U.S. reserve requirements.
B. the bank does not have to pay deposit insurance premiums on these deposits.
C. regulatory compliance may be more costly for a foreign bank than a U.S. bank.
D. taxes on the profits on banks outside the U.S. may be lower on banks inside the U.S.
Answer
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