Suppose South Korea Limits the Amount of Deposits Made in South

question 40

Multiple Choice

Suppose South Korea limits the amount of deposits made in South Korea that can be used to make loans in other countries.This would be in support of which reason for regulating international banks?

• A)Protecting the safety of depositor funds
• B)Promoting stable growth in money and credit
• C)Providing foreign currency controls
• D)Protecting domestic financial institutions
• E)Restricting the outflow of scarce capital

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Definitions:

Dodd-Frank Act

A comprehensive piece of financial reform legislation passed in 2010 in the United States, aimed at reducing risks in the financial system.

Proxy Solicitations

Efforts to collect proxy votes from shareholders to influence decisions at shareholder meetings.

Binding Vote

A vote that obligates the involved parties to adhere to the decision or outcome of that vote.

Mortgage

A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.