Why Would a U

question 2

Multiple Choice

Why would a U.S.bank open a foreign branch bank instead of a foreign chartered subsidiary?

• A)This form of bank organization allows the bank to be able to extend a larger loan to a customer than a locally chartered subsidiary bank of the parent.
• B)To slow down check clearing and maximize the bank's float.
• C)To avoid U.S.banking regulation.
• D)This form of bank organization allows the bank to be able to extend a larger loan to a customer than a locally chartered subsidiary bank of the parent,as well as avoid U.S.banking regulation.

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Definitions:

Public Policy

Government policies aimed at ensuring the public's general welfare and protection.

Wrongful Action

An act or omission that infringes on the rights of others or is contrary to law.

Legal Right

An entitlement or privilege that is protected and enforced by a legal system.

Personal Property

Property that is movable; any property that is not real property; sometimes called personalty or chattel.