Hi.

68.

Which of the following is (are) the key component(s) included in the International Banking Act (IBA) of 1978?

A.

Foreign banks are required to follow the same branching laws as U.S. banks.

B.

Legal reserves requirements determined by the Federal Reserve Board are compulsory against deposits accepted by U.S. branch or agency offices of foreign banks with consolidated assets of $1 billion or more.

C.

U.S. branches of foreign banks are eligible for deposit insurance under stipulated conditions.

D.

U.S. branches of foreign banks have access to certain Federal Reserve services, such as the ability to borrow from the Federal Reserve banks.

E.

All of the options are correct.

69.

The Foreign Bank Supervision Enhancement Act of 1991 places the responsibility for supervising U.S. branches of foreign banks with the:

A.

Office of the Comptroller of the Currency.

B.

Federal Reserve Board.

C.

Federal Deposit Insurance Corporation.

D.

Secretary of Commerce.

E.

None of options is correct.

70.

A call currency option:

A.

obligates the holder to purchase currency or currency futures contracts at a fixed price any time before the option expires.

B.

gives the holder the right to purchase currency or currency futures contracts at a fixed price any time before the option expires.

C.

obligates the holder to sell currency or currency futures contracts at a fixed price any time before the option expires.

D.

gives the holder the right to sell currency or currency futures contracts at a fixed price any time before the option expires.

E.

None of options is correct.

71.

Business corporations that are subsidiaries of a bank organized under Section 25 of the Federal Reserve Act and must devote the bulk of their activities to serving international customers are known as:

A.

IBFs.

B.

shell branches.

C.

ETCs.

D.

agreement corporations.

E.

None of options is correct.

72.

____________ are often used to protect a nation against loss of its foreign currency reserves, which might damage its prospects for repaying international loans and purchasing goods and services abroad.

A.

Export loan rate restrictions

B.

Foreign exchange controls

C.

Minimum capitalization requirements for domestic banks

D.

Examination and supervision regulations for local branch offices

E.

None of options is correct

-fm