Foreign Currency Liabilities Have Increased in Importance as a Source

question 20

Multiple Choice

Foreign currency liabilities have increased in importance as a source of funds for Australian banks.Which of the following statements is NOT a major reason?
i.deregulation of the foreign exchange market
ii.diversification of funding sources
iii.demand from multinational corporate clients
iv.internationalisation of global financial markets
v.avoidance of the non-callable deposit prudential requirement
vi.expansion of banks' asset-base denominated in foreign currencies

• A) v
• B) ii
• C) i
• D) All of the given answers are correct.

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Definitions:

Capital Accounts

Financial records that track the equity and investment contributions of owners or shareholders in a company.

Noncash Assets

Assets that are not in the form of cash or cash equivalents, including property, equipment, and intellectual property.

Net Income and Losses

The difference between total revenues and total expenses, indicating the financial performance of a company over a specific period.

Sale

A transaction between two parties where the ownership of goods, services, or assets is transferred from the seller to the buyer for an agreed amount of money or value.