Exam 24: International Banking and Financial Regulations

IBFs record both domestic and foreign deposits and funds flows.

The potential for loss connected to changing relative prices of domestic and foreign currencies is known as currency risk.

Increasingly the new Basle bank capital standards have been used as a standard for approving or denying international banks to expand their activities abroad.

Agency offices provide specialized services, such as recordkeeping for business transactions and providing customers with liquid balances for spending as needed.

The euro is the currency used by England, France, Germany, and many other European countries.

Using the the description or the definition below, identify each of the key terms and concepts presented in this chapter a. A U.S. law passed during the 1970s to bring foreign banks operating in the United States under government regulation for the first time. b. A U.S. law passed in 1983 requiring U.S. banks to increase their capital and to pursue more prudent international loan policies. c. An agreement among leading industrialized nations to require their banks to hold the same capital requirements and to adopt the same capital standards.

The law passed by the U.S. Congress in 1983 which required American banks to post special reserves to cover possible losses on their foreign loans is known as:

Foreign banks that accept retail deposits (less than $50,000) must obtain FDIC insurance.

What important principle about international banking was revealed by the global banking crisis of the 1990s and the subsequent credit crisis of 2007-2009?

The compact signed by the United States, Japan, Canada and leading industrialized countries in Western Europe to monitor the capital positions of their banks and to impose minimum capital-to-risk-adjusted-asset ratios on all banks in the signing countries is known as the:

A group of banks put together in order to subscribe to a Eurobond issue is called a:

Most Eurocurrency loans are unsecured and carry floating interest rates.

Citigroup pools consumer credit-card receivables and sell the resulting securities in the open market. This process is called:

Any foreign bank seeking to buy more than 5 percent of the stock of a U.S. bank or bank holding company must receive Federal Reserve Board approval prior to making the acquisition.

When international investors face the possibility of loss when the country or countries in which they have invested prohibit outflows of capital or the repatriation of dividends or interest payments back to their home country, this is known as:

Services offered by international banks include all of the following except: