Exam 24: International Banking and Financial Regulations

The instrument that is a bank's promise to pay for goods stored overseas is called a:

The term "multinational corporations" applied only to non-financial companies, but is inappropriate to describe large international banks whose organizational structure is unique.

Measured by total branches and other banking office facilities, Great Britain leads the list of all foreign nations in terms of the number of offices operated by U.S. banks there.

Which services typically offered by international banks?

Among the most important services offered by international banking departments of major U.S. banks are trading in foreign currencies, issuing letters of credit and providing acceptance financing.

While it cannot accept deposits, this type of international banking facility set up abroad by a U.S. bank attempts to find new loan customers for the home office and assist existing customers with their particular financial needs. The particular facility being described is the:

The rapid expansion of banking world wide lead to thousands of cases of fraud and financial manipulation annually as a bank employees and government officials have dipped into the growing cash reserves of leading international banks.

Securitized loans are completely insulated from market risk.

U.S. international banking operations really began on a major scale in the 1930s when weakness and large scale unemployment in the domestic economy caused many major U.S. banks to seek more profitable opportunities abroad.

The International Lending and Supervision Act passed by the U.S. Congress in 1983 required U.S. banks with international credit risk exposure to post special reserves behind those loans.

To prevent further bank failures, bank regulators in the U.S. and overseas look closely at banks':

The danger of loss associated with changing relative prices of foreign and domestic currencies is known as:

The organizational vehicle used by a multinational bank to offer international services that is really a set of computerized accounts is the:

The Foreign Bank Supervision Act of 1991 limits U.S. authority over foreign banks operating in the U.S.

Universal banking combines traditional banking, insurance, securities trading and even real estate brokering under one corporate umbrella.

The Foreign Bank Supervision Act of 1991 contains all of the following provisions except:

U.S. multinational banks are permitted to:

The global banking crisis of the 1990s although severe, disproved the existence of the so-called "domino effect" in international banking.

The multinational activities of U.S. banks increasingly are being concentrated mainly in their foreign offices rather than in their domestic offices.

International banks are offering more international services from their domestic offices for all of the following reasons except: