Which of the Following Is NOT True About International Banking

question 6

Multiple Choice

Which of the following is NOT true about International Banking Facilities (IBFs) ?

• A) IBFs may be established by a U.S.-chartered depository institution, a U.S. branch or agency of a foreign bank, or a U.S. office of an Edge Act Corporation.
• B) An IBFs is a set of asset and liability accounts segregated on the books of the establishing institution.
• C) IBFs can accept deposits over $100,000 from non-U.S. residents or other IBFs.
• D) Deposits generated can be used to make domestic loans only.
• E) All of the above is true.

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Definitions:

Basic Types

Fundamental categories or classes into which things can be grouped based on common characteristics.

World Economy

The global network of economic activities and transactions, encompassing all of the world's national economies and facilitating international trade and investment.

Free Trade

An economic policy that allows imports and exports among member countries with little to no tariff barriers.

Eurozone

A monetary and economic union of 19 European Union countries that have adopted the euro as their common currency.