A question was asked during today's lecture regarding the relative yields of Eurodollar deposits. There is a great article by the Richmond Fed that covers this topic: http://www.richmondfed.org/publications/economic_research/instruments_of_the_money_market/ch05.cfm
Keep in mind that Eurodollar deposits -- deposits in banks outside of one's own domestic borders -- can take many forms with many features. In general, the yield on these deposits may differ from similarly featured deposits in one's own country because of the added risks. As the article points out, the added risks include: risks related to repatriating (bring home) funds, risk associated with the soundness of the financial institution (U.S. has FDIC insured deposits, to a point -- but other countries may or may not have similar insurance), and jurisdiction disputes.
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