Eurodollar

Hey kiddo, let’s talk about something called eurodollar.

You remember what dollars are, right? They’re the paper money we use in the United States to buy things. But there are also dollars that are used in other countries. Eurodollars are just like regular dollars, except they're stored in banks outside the United States.

Now, why do banks store dollars outside of the United States? One reason is that sometimes big companies in other countries need to pay each other in dollars, so they keep some eurodollars to make those payments. Also, banks like to receive deposits in the form of eurodollars because they don't have to follow the same rules set by the US government and they can earn more interest.

Eurodollars are used in many international transactions, especially in the business world. They're also important for the global economy, because they help people and businesses from different countries to borrow and lend money easier.

So remember, just like how we use US dollars to buy things here, eurodollars are used in other countries and stored in banks outside the US. They help people and businesses from different countries work together and borrow and lend money easier.