21-134 Which of the Following Is a Disadvantage of International

question 45

Multiple Choice

21-134 Which of the following is a disadvantage of international expansion?

• A)An FI can lower its net regulatory burden and therefore increase its potential net profitability by finding countries that have reduced activity restrictions and reserve requirements.
• B)An FI can generate additional returns from new product innovations if it can sell such services internationally rather than just domestically.
• C)Monitoring and information collection cost often are higher in international markets.
• D)International expansion allows an FI to search for cheaper and more available sources of funds.
• E)International activities enhance the opportunities to diversify the risk of earnings flows.

---

Definitions:

Consideration

The benefit, interest, right, or profit that is given or promised to one party in a contract in exchange for them to do or not do something.

Binding Contract

An agreement between two or more parties that is legally enforceable.

Consideration

The value (which could be in the form of money, goods, services, or a promise) exchanged between parties in a contract, making the agreement legally binding.

Tort of Deceit

A civil wrong that involves making false representations with the intentional or reckless disregard for the truth, causing someone else to suffer damage.