Hi. For each of the questions, please provide answers and thorough real-world explanations.

The Third State Bank of Laramie has opened an office in Morocco. This office does not take deposits but makes commitments to make loans, issues letters of credit, and provides technical assistance to companies in Morocco. What type of office has the Third State Bank of Laramie opened in Morocco?

A.

A representative office

B.

An agency office

C.

A branch office

D.

A subsidiary

E.

An export trading company

92.

The Second National Bank of Guthrie has opened an office in Chile. This office offers a full line of services and is not a separate legal entity from the Second National Bank of Guthrie. What type of office has the Second National Bank of Guthrie opened in Chile?

A.

A representative office

B.

An agency office

C.

A branch office

D.

A subsidiary

E.

An export trading company

93.

The State Bank of Virginia owns 55 percent of the shares of the Bank of Budapest. What type of arrangement is this?

A.

A representative office

B.

An agency office

C.

A branch office

D.

A subsidiary

E.

An export trading company

94.

The State Bank of Nebraska owns a company that has more than half of its income from activities associated with exporting goods and services from the U.S. This company offers export insurance coverage, transportation and warehousing in Europe, trade financing, and other services. What type of company does the State Bank of Nebraska own?

A.

A representative office

B.

An agency office

C.

A branch office

D.

A subsidiary

E.

An export trading company

95.

If Denmark requires that all foreign banks operating in Denmark have at least ten percent capital, what reason for regulating international banks is this action most likely in support of?

A.

Protecting the safety of depositor funds

B.

Promoting stable growth in money and credit

C.

Providing foreign currency controls

D.

Protecting domestic financial institutions

E.

Restricting the outflow of scarce capital

96.

Suppose the international banks operating in Venezuela have to meet the same legal reserve requirements as domestic banks to avoid massive threats to economic health in the nation. This would be in support of which reason for regulating international banks?

A.

Protecting the safety of depositor funds

B.

Promoting stable growth in money and credit

C.

Providing foreign currency controls

D.

Protecting domestic financial institutions

E.

Restricting the outflow of scarce capital

97.

Suppose Brazil decides to restrict the export of the real by international banks so that the real does not leave the country and reduce currency reserves for repayment of Brazilian debt. This would be in support of which reason for regulating international banks?

A.

Protecting the safety of depositor funds

B.

Promoting stable growth in money and credit

C.

Providing foreign currency controls

D.

Protecting domestic financial institutions

E.

Restricting the outflow of scarce capital

98.

Suppose India restricts entry of foreign banks until the end of the decade. This would be in support of which reason for regulating international banks?

A.

Protecting the safety of depositor funds

B.

Promoting stable growth in money and credit

C.

Providing foreign currency controls

D.

Protecting domestic financial institutions

E.

Restricting the outflow of scarce capital