In Eurodollar market, decrease in demand of Euro dollars results in
A. increase in KIBOR
B. decrease in KIBOR
C. decrease in federal funds rate
D. increase in federal funds rate
Answer: Option C
Solution (By Examveda Team)
In Eurodollar market, decrease in demand of Euro dollars results in decrease in federal funds rate. The federal funds rate refers to the interest rate that banks charge other banks for lending them money from their reserve balances on an overnight basis.This Question Belongs to Management >> International Finance And Treasury
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