A Bank May Establish a Multinational Operation for the Reason

question 83

Multiple Choice

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

• A)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.
• B)greater stability of earnings is possible with international diversification.Offsetting business and monetary policy cycles across nations reduces the country-specific risk of any one nation.
• C)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.
• D)multinational banking operations help a bank prevent the erosion of its traveler's check,tourist,and foreign business markets from foreign bank competition.

Apply knowledge of the accounting cycle and its components.

Analyze financial statements to determine a company's financial health and operational efficiency.

Understand the structure and preparation of worksheets, including the steps involved and what is not included.

Identify and order the listing of assets on a classified balance sheet.

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Definitions:

Upper-Airway Blockage

A medical emergency where the airways are obstructed, leading to reduced or complete stoppage of airflow.

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or experiencing restorative sleep.

Sleep Terror Disorder

Disorder of arousal in which the individual screams, sweats, and has a racing heart during NREM sleep; the person cannot be easily wakened and usually does not remember the episode on awakening.

Nightmare Disorders

A sleep disorder characterized by frequent and vivid nightmares, often resulting in distress or impairment in social or occupational functioning.