Which of the Following Is True of Offshore Banking

question 35

Multiple Choice

Which of the following is true of offshore banking?

• A)The offshore banks are mainly concentrated in the European Union and the transactions are generally denominated in euro.
• B)The offshore banks operate with costly restrictions and pay higher taxes than the domestic banks.
• C)The offshore banks usually charge higher rates of interest on consumption loans than the domestic banks.
• D)Offshore banks in the U.S.are able to offer a higher rate on dollar deposits and a lower rate on dollar loans than their domestic competitors.
• E)Offshore banking transactions are considerably less risky than domestic transactions as they are closely monitored by the government of the nations in which they operate.

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Definitions:

Political Decision-Making Processes

Procedures involved in making decisions within the context of a political system or organization.

Powerful Stakeholders

Individuals or groups with significant influence or control over the outcomes of projects, decisions, or policies within an organization.

Divergence

The process or instance of differing or deviating from a common point, often leading to variation or separation.

Vertical Thinking Method

A problem-solving approach that involves sequential steps, focusing on depth rather than breadth, and often follows a specific set of rules.