The first type of international office that a bank forms outside its home country that is exploratory in nature is known as:
A) an Edge Act bank.
B) a head office.
C) a representative office.
D) an agreement corporation.
E) a foreign branch.

Question

Quizplus · Accepted Answer

A representative office is a type of international office that a bank forms outside its home country that is exploratory in nature. It is established to explore business opportunities and gather market intelligence without engaging in any banking activities. The other options listed, such as Edge Act banks, agreement corporations, and foreign branches, are all types of international offices that engage in actual banking activities, such as lending and accepting deposits, rather than just market exploration. A head office, on the other hand, typically refers to the main administrative center of a bank or corporation, usually located in its home country.

The First Type of International Office That a Bank Forms