Which of the Follow Are Reasons for Offshore Banking? I

question 20

Multiple Choice

Which of the follow are reasons for offshore banking? I. Avoid high costs of domestic regulation
II) Avoid government mandated credit allocations
III) Avoid taxes on capital flows
IV) Avoid attempts to seize foreign deposits

• A) II only
• B) I and III
• C) I,II, and III
• D) I, II, III, and IV

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Definitions:

Expected Return

The anticipated return on an investment, calculated based on the probabilities of various outcomes.

Portfolio

A collection of financial assets such as stocks, bonds, commodities, currencies, and cash equivalents held by an investment company, institution, or individual.

Portfolio

A group of financial instruments comprising equities, debentures, commodities, liquid assets, and near cash items, in addition to closed-end funds and exchange traded funds (ETFs).

Alpha Stock

A stock that is expected to outperform the broader market, typically showing a positive alpha indicating better than expected returns.