The history of the Eurocurrency Market dates back specifically to the World War II period. Due to political tension and economic boundaries, many people around the globe were looking for ways to avoid regulatory costs and restrictions set by the government. Specifically, these restrictions involved: special charges and taxes on domestic banking; requirements to lend money to certain borrowers at concessionary rates; interest rate ceilings; rules that prevented competition among banks; and reserve requirements. The solution to these rules and costs was, and still is, the Eurocurrency Market. Today, the Eurocurrency Market still prevails because there are profitable opportunities from offshore transactions. To understand the Eurocurrency Market, there are two terms that one needs to become familiar with – that is, Eurocurrency and Eurobanks. But before getting into the technicalities of the market and its related terms, there needs to be this understanding: “…the prefix Euro as used in here [Eurocurrency Market] has nothing to do with the currency known as the euro.” This understanding also applies to the terms Eurocurrency and Eurobanks. A Eurocurrency is any convertible currency that is deposited by a national government or a firm in banks outside their domestic market. One example would be the United States dollar deposited at a bank in South Korea. The U.S. dollar would be considered as a Eurocurrency. Furthermore, the bank in South Korea is known as a Eurobank. A Eurobank is a foreign bank or a foreign bank branch of the home country that accepts deposits and makes loans in foreign currencies. Thus, it can be further concluded that the Eurocurrency Market is made up of Eurobanks. The strict regulations and heavy taxes that existed after World War II have been eradicated or have become obsolete. As time passes, it is more obvious the cost and return disparities are becoming less and less. Yet, the Eurocurrency Market still subsists because there still lies opportunities due to continuing government regulations and taxes that raise costs and cause lower returns – all relating to domestic bank transactions. Keep in mind that the Eurocurrency Market exists because of government restrictions and regulations that leads to profitable opportunities. Reference Shapiro,A. & Sarin, A. V.(2009). [Review of the book Foundations of Multinational Financial Management]. The Eurocurrency Market. 363 – 365.