Which of the Following Is a Characteristic of Most Offshore

question 82

Multiple Choice

Which of the following is a characteristic of most offshore financial centers?

• A)strict domestic regulation
• B)minimal banking activities
• C)large foreign currency markets
• D)nominal or non-existent tax rates

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Definitions:

Main Determinant

The primary factor or condition that influences an outcome or result.

Price Elasticity of Supply

The measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price.

Demand-Side

Pertaining to the aspects of the economy influenced by consumer spending and preferences, impacting overall demand for goods and services.

Market Failure

The inability of a market to bring about the allocation of resources that best satisfies the wants of society; in particular, the overallocation or underallocation of resources to the production of a particular good or service because of externalities or asymmetric information, or because markets fail to provide desired public goods.