Global Finance Meeting (Scenario)
International finance experts are meeting in Tokyo for a weeklong conference to discuss the current state of global finance. At the conference are representatives from a variety of monetary and financial organizations. Expert A often works with international firms arranging capital in the form of shares. Expert B works for the Bank of Nova Scotia in the British Virgin Islands (as offshore bank). Expert C advises international firms on corporate mergers.
-The employer of Expert B can most likely be categorized as which of the following?
A) investment bank
B) private bank
C) commercial bank
D) offshore bank

Question

Quizplus · Accepted Answer

The Bank of Nova Scotia in the British Virgin Islands, as described for Expert B, fits the definition of an offshore bank, which operates in a jurisdiction that offers financial and legal advantages, such as privacy, reduced or no taxation, and protection against local political or financial instability.