4.Because of fewer regulations, the Eurobanking has gained more popu-
larity among investors and grown rapidly.
5. The Eurocurrency market improves efficiency of international
finances. Efficiency comes from access to low-cost borrowing, lack of
government regulations, and strong competition among the
Eurobanks.
6. LIBOR is an important interest rate that the Eurodollar market uses
as a benchmark interest rate to set its loan rates.
7. International banking facilities (IBFs) are departments of U.S. banks
that are permitted to engage in Eurocurrency banking.
8. The net size of the Eurodollar market measures the amount of credit
actually extended to nonbanks.
9. Large Eurocurrency loans are made by bank syndicates.