A Bank May Establish a Multinational Operation for the Reason

question 93

Multiple Choice

A bank may establish a multinational operation for the reason of regulatory advantage.The underlying rationale being that

• A)banks follow their multinational customers abroad to prevent the erosion of their clientele to foreign banks seeking to service the multinational's foreign subsidiaries.
• B)multinational banking operations help a bank prevent the erosion of its traveler's check,tourist,and foreign business markets from foreign bank competition.
• C)by maintaining foreign branches and foreign currency balances,banks may reduce transaction costs and foreign exchange risk on currency conversion if government controls can be circumvented.
• D)multinational banks are often not subject to the same regulations as domestic banks.There may be reduced need to publish adequate financial information,lack of required deposit insurance and reserve requirements on foreign currency deposits,and the absence of territorial restrictions.

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Definitions:

Epidemiological Studies

Research investigations that study the patterns, causes, and effects of health and disease conditions in defined populations.

Laboratory Studies

Controlled experiments or research conducted in a specialized facility equipped for scientific investigation and analysis.

Biological Hazard

A threat posed by biological substances or organisms that could harm human health, including viruses, bacteria, fungi, and parasites.

Bacteria

Microorganisms that exist in various environments, some beneficial to human health or essential for nature, while others can cause diseases.