Which of the Following Is True of International Banking Facilities

question 58

Multiple Choice

Which of the following is true of International Banking Facilities (IBFs) in the U.S.?

• A)IBFs were legalized by the Federal Reserve Board in 1970.
• B)IBFs are bookkeeping systems set up in existing bank offices of the U.S.to record international banking transactions
• C)IBFs are "shell" bank branches of U.S.banks in the Caribbean.
• D)Loans extended by the IBFs are subject to reserve requirements and interest rate regulations.
• E)IBFs are allowed to extend loans to the residents and businesses of the United States and not to the nonresidents.

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Definitions:

Chronological Order

The arrangement of events, documents, or records in the sequence of their occurrence.

Prepaid Insurance

An asset account representing insurance payments made in advance of the coverage period, recognized as an expense over time.

Insurance Payable

A liability account that represents amounts owed for insurance premiums that are due but not yet paid.

Proprietorship

A business owned by one individual.