A Major Difference Between the British-Style and Japanese Banking Systems

question 61

Multiple Choice

A major difference between the British-style and Japanese banking systems is that ________.

• A) British-style banks are allowed to hold substantial equity stakes in commercial firms, whereas Japanese banks cannot
• B) Japanese banks are allowed to hold substantial equity stakes in commercial firms, whereas British-style banks cannot
• C) bank holding companies are illegal in British-style banks
• D) Japanese banks are usually organized as bank holding companies

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Definitions:

Jurisprudence

The study or philosophy of law that examines the theoretical and philosophical interpretations of laws and legal principles.

Consistent Treatment

The practice of applying rules, policies, and decisions uniformly and fairly to all parties or situations without undue variation.

Foreign Investor

An individual, company, or entity that invests capital in another country outside of their home country, typically to gain financial returns.

Limited Liability Company

A corporate entity framework that marries the limited liability protections of a corporation with the tax flow-through benefits of partnerships and sole proprietorships.