Question 1

A(n)_______________ is a draft for payment due and payable only on a specific future date.

Accepted Answer

The answer of A(n)_______________ is a draft for payment due...

Question 2

An international loan risk evaluation system that uses expert opinion is the ______________.

Accepted Answer

The answer of An international loan risk evaluation system that...

Question 3

An international loan risk evaluation system that lists economic and political factors believed to be correlated with loan risk is called the ______________.It may apply comparative weights to each factor or consider each factor equally.

Accepted Answer

The answer of An international loan risk evaluation system that...

Question 4

When dealers speculate on trends in the prices of selected currencies,it is called ______________.

Accepted Answer

The answer of When dealers speculate on trends in the...

Question 5

When a loan is made in a foreign country and where the court system and bankruptcy laws needed to support the enforcement of contracts and loans are missing,it causes a special type of risk called ______________.

Accepted Answer

The answer of When a loan is made in a...

Question 6

The International Lending and Supervision Act does not require federal regulators to supervise the U.S.banks under their jurisdiction more closely but to give banks and the private marketplace more freedom in deciding what their capital requirements should be.

Accepted Answer

The International Lending and Supervision Act of 1983 actually requires federal regulators to supervise U.S. banks under their jurisdiction more closely, including setting standards for capital adequacy, rather than giving banks and the private marketplace more freedom in deciding their capital requirements.

Question 7

The Basel Agreement,on international capital standards,does not cover Japanese banks but does cover major banks in the U.S.and Western Europe.

Accepted Answer

The statement is incorrect. The Basel Agreement on international capital standards covers major banks in Japan, the U.S., and Western Europe, among other countries.

Question 8

One of the most comprehensive country-risk indicators is provided by ______________.This guide supplies political,economic,and financial risk ratings and an overall composite rating for about 100 countries monthly.

Accepted Answer

The answer of One of the most comprehensive country-risk indicators...

Question 9

The barriers between securities dealers and international banks are falling in many countries,making it harder for the public to see real differences between financial institutions.

Accepted Answer

The statement mentions that barriers between securities dealers and international banks are falling, making it harder for the public to distinguish between different financial institutions. Therefore, the statement is true.

Question 10

The Federal Reserve Board can terminate the operations of a foreign bank in the United States if it finds that the bank is not being operated in a manner consistent with the public interest.

Accepted Answer

The Federal Reserve has the authority to terminate the operations of a foreign bank in the United States if it finds that the bank is not being operated in a manner consistent with the public interest. This is outlined in section 8 of the International Banking Act of 1978.

Question 11

The International Banking Act of 1978,prohibited foreign-owned banks from crossing state lines unless the state or states involved allow cross-border entry.

Accepted Answer

The International Banking Act of 1978 did prohibit foreign-owned banks from crossing state lines unless the state or states involved allow cross-border entry.

Question 12

When a foreign government takes actions that interfere with the repayment of an international loan,it causes a special type of risk called ______________.

Accepted Answer

The answer of When a foreign government takes actions that...

Question 13

Under U.S.regulations,Edge Act subsidiaries must devote at least 50 percent of their business to assist customers with export-import trade and international credit.

Accepted Answer

Edge Act subsidiaries, under U.S. regulations, are not required to devote at least 50 percent of their business specifically to assisting customers with export-import trade and international credit. They are allowed to engage in a wide range of international banking and financial operations.

Question 14

Foreign banks taking retail deposits in the U.S.can qualify for federal deposit insurance.

Accepted Answer

According to the Federal Deposit Insurance Corporation (FDIC), foreign banks that meet certain criteria can qualify for federal deposit insurance in the U.S. This includes having a branch or agency in the U.S., being subject to U.S. regulatory oversight, and having deposits in the U.S. insured by a comparable foreign deposit insurance system.

Question 15

ADRs are issued by foreign banks operating outside the U.S.and sold to investors in the Eurodollar market.

Accepted Answer

ADRs (American Depositary Receipts) are issued by U.S. depositary banks and represent shares in foreign companies, allowing those shares to be traded on U.S. stock exchanges.

Question 16

Currency options give their buyer the right,but not the obligation,to deliver or take delivery of a foreign currency or currency futures contract.

Accepted Answer

Currency options are derivatives that give their buyer the right, but not the obligation to deliver or take delivery of a foreign currency or currency futures contract. The buyer of a currency option pays a premium to the seller for this right, and if they choose to exercise the option, the seller must fulfill their obligation. However, if the buyer decides not to exercise the option, they simply forfeit the premium they paid for the option.

Question 17

Long hedges in currency futures are designed to protect a bank or its customer from increases in the price of the currency it must eventually acquire.

Accepted Answer

Long hedges in currency futures involve buying futures contracts to protect against price increases in the currency that a bank or its customer will eventually need to acquire.

Question 18

A(n)_______________ is a draft for payment due and payable upon presentation to the bank.

Accepted Answer

The answer of A(n)_______________ is a draft for payment due...

Question 19

Under U.S.regulations,a U.S.international bank can invest more than 50 percent of its consolidated capital and surplus in an export trading company.

Accepted Answer

U.S. regulations typically impose limitations on the percentage of capital and surplus that a bank can invest in non-banking enterprises, including export trading companies, to manage risk and ensure financial stability.

Question 20

_______________ are primarily medium-term credit agreements between international banks and their larger corporate and government customers.The customer is authorized to periodically offer short term notes that come due in 90 to 180 days over a stipulated period.

Accepted Answer

The answer of _______________ are primarily medium-term credit agreements between...

Quiz 20: International Banking and the Future of Banking and Financial Services

A(n)_______________ is a draft for payment due and payable only on a specific future date.

An international loan risk evaluation system that uses expert opinion is the ______________.

An international loan risk evaluation system that lists economic and political factors believed to be correlated with loan risk is called the ______________.It may apply comparative weights to each factor or consider each factor equally.

When dealers speculate on trends in the prices of selected currencies,it is called ______________.

When a loan is made in a foreign country and where the court system and bankruptcy laws needed to support the enforcement of contracts and loans are missing,it causes a special type of risk called ______________.

The International Lending and Supervision Act does not require federal regulators to supervise the U.S.banks under their jurisdiction more closely but to give banks and the private marketplace more freedom in deciding what their capital requirements should be.

The Basel Agreement,on international capital standards,does not cover Japanese banks but does cover major banks in the U.S.and Western Europe.

One of the most comprehensive country-risk indicators is provided by ______________.This guide supplies political,economic,and financial risk ratings and an overall composite rating for about 100 countries monthly.

The barriers between securities dealers and international banks are falling in many countries,making it harder for the public to see real differences between financial institutions.

The Federal Reserve Board can terminate the operations of a foreign bank in the United States if it finds that the bank is not being operated in a manner consistent with the public interest.

The International Banking Act of 1978,prohibited foreign-owned banks from crossing state lines unless the state or states involved allow cross-border entry.

When a foreign government takes actions that interfere with the repayment of an international loan,it causes a special type of risk called ______________.

Under U.S.regulations,Edge Act subsidiaries must devote at least 50 percent of their business to assist customers with export-import trade and international credit.

Foreign banks taking retail deposits in the U.S.can qualify for federal deposit insurance.

ADRs are issued by foreign banks operating outside the U.S.and sold to investors in the Eurodollar market.

Currency options give their buyer the right,but not the obligation,to deliver or take delivery of a foreign currency or currency futures contract.

Long hedges in currency futures are designed to protect a bank or its customer from increases in the price of the currency it must eventually acquire.

A(n)_______________ is a draft for payment due and payable upon presentation to the bank.

Under U.S.regulations,a U.S.international bank can invest more than 50 percent of its consolidated capital and surplus in an export trading company.

_______________ are primarily medium-term credit agreements between international banks and their larger corporate and government customers.The customer is authorized to periodically offer short term notes that come due in 90 to 180 days over a stipulated period.