Which of the Following Is True for World Financial Centers

question 56

Multiple Choice

Which of the following is true for world financial centers?

• A)They are developed countries who offer tax-free financial help to the developing countries.
• B)They are countries or territories where there are few rules governing the financial sector as a whole and low overall taxes.
• C)They are central points for business and finance and are usually home to major corporations and banks or at least regional headquarters for global firms.
• D)They are countries which serve as the local headquarters for the International Monetary Fund and the World Bank.
• E)They are islands which serve as the annual destinations for the financial meets of the G20 group.

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Definitions:

Deferred Tax Note

An explanatory note in financial statements detailing the amounts and causes of deferred tax assets and liabilities.

Earnings Quality

An assessment of the degree to which reported income provides accurate information about a firm's true income generation and sustainability.

Effective Income Tax Rate

The average percentage of their pre-tax income that individuals or corporations pay in taxes.

Economic Changes

Variations or shifts in the economic environment that can affect the performance and strategies of businesses.