Which of the Following Is True of International Banking Facilities

question 58

Multiple Choice

Which of the following is true of International Banking Facilities (IBFs) in the U.S.?

• A)IBFs were legalized by the Federal Reserve Board in 1970.
• B)IBFs are bookkeeping systems set up in existing bank offices of the U.S.to record international banking transactions
• C)IBFs are "shell" bank branches of U.S.banks in the Caribbean.
• D)Loans extended by the IBFs are subject to reserve requirements and interest rate regulations.
• E)IBFs are allowed to extend loans to the residents and businesses of the United States and not to the nonresidents.

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Definitions:

Financial Statements

Reports detailing a company's financial performance, position, and cash flows, including balance sheet, income statement, and statement of cash flows.

Analyze Transaction

The process of reviewing and breaking down a financial transaction to understand its impact on the accounting equation.

Trial Balance

A bookkeeping worksheet listing the balances of all ledgers in two columns, debits and credits, to verify that the total debits equal total credits.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and profit.