A US Bank Based in the Cayman Islands That Accepts U

question 24

Multiple Choice

A U.S. bank based in the Cayman Islands that accepts U.S. dollar deposits and makes loans in U.S. dollars is referred to as an) :

• A) Dollarbank
• B) Eurobank
• C) Cayman dollarbank
• D) Offshore financial center

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Definitions:

Opportunity Cost

The potential benefit that is given up when one alternative is selected over another.

Variable Selling

Variable selling costs are expenses that fluctuate with sales volume, such as commissions and credit card fees, which increase as sales increase.

Administrative Expense

Costs related to the general administration of a business, such as salaries of executive officers and costs of the head office.

Direct Labour

The wages or salaries paid to employees directly involved in producing goods or providing services.