EURODOLLAR TIME DEPOSITS

Eurodollar time deposits: translation

U.S. dollars on deposit outside the United States, either with a foreign bank or a subsidiary of a U.S. bank. The interest paid for these dollar deposits generally is higher than that for funds deposited in U.S. banks because the foreign banks are riskier_they will not be supported or nationalized by the U.S. government upon default. Furthermore, they may pay higher rates of interest because they are not regulated by the U.S. government. The CENTER ONLINE Futures Glossary