4. When a U.S. bank accepts a deposit from one of its foreign branches, or from its...
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4. When a U.S. bank accepts a deposit from one of its foreign branches, or from its own IBF, that deposit is subject to Fed reserve requirements. Similarly, reserve requirements are imposed on any loan from a U.S. bank's foreign branch to a U.S. resident, or on any asset purchase by the branch bank from its U.S. parent. What do you think is the rationale for these regulations?
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International Economics Theory And Policy
ISBN: 9780321116399
6th Edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz
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