What is the Eurocurrency market? What are the main factors determining foreign exchange rates in that market?

Question:

What is the market? What are the main factors determining foreign exchange rates in that market? Differentiate between the nominal interest rate and the effective interest rate in this market.

Eurocurrency
Eurocurrency is currency deposited by national governments or corporations, outside of its home market. Commonly it is currency held in banks located outside of the country which issues the currency. Eurocurrency is when an institution uses money...