Question
Hi. For each question, please provide long explanation. 81. A full-service facility operated by a bank away from its home office but is merely a
Hi. For each question, please provide long explanation.
81.
A full-service facility operated by a bank away from its home office but is merely a local office that represents a single large financial-service corporation is known as a(n):
A.
branch office.
B.
agency office.
C.
subsidiary.
D.
representative office.
E.
None of the options is correct.
82.
Which of the following is one of the customer services supplied by banks in international markets?
A.
Underwriting notes and bond issues in the U.S. bond market
B.
Helping customer market their products in the domestic market
C.
Helping customers hedge against foreign currency risk
D.
Making loans to domestic customers
E.
All of the options are customer services offered by banks in the international market.
83.
Which of the following is a risk evaluation system in international lending today?
A.
The Seat-of-the-pants method
B.
The Discrimination method
C.
The Delphi method
D.
The State-risk indicator method
E.
None of the options is correct.
84.
The Hagard Mercantile Company has made a $30 million investment in a mill in Germany and fears a substantial decline in the mark's current spot rate from $0.63 to $0.56 lowering the value of the company's investment in the mill. Which of the following currency contracts can help Hagard solve this problem?
A.
Call currency option
B.
Put currency option
C.
Long-hedge currency futures contract
D.
Currency swap contract
E.
None of the options is correct.
85.
The Goudge Grilling Company has just ordered a shipment of grills from Frankfurt. Payment for the grills must be in euros when the grills are delivered. Euros have changed in value in the last 30 days. They have gone from $1.42 to $1.44. If this trend continues which of the following currency contracts can help the Goudge Grilling Company hedge their currency risk?
A.
Put currency option
B.
Short-hedge currency futures contract
C.
Long-hedge currency futures contract
D.
Currency swap contract
E.
None of the options is correct.
86.
As the text suggests, all of the following areas of the world have significant opportunities for foreign banks except:
A.
Asia.
B.
China.
C.
Russia.
D.
Japan.
E.
South Korea.
87.
The primary source for international bank statistics is:
A.
the FDIC.
B.
the OCC.
C.
the BIS.
D.
the ETC.
E.
the United Nations.
88.
The market for banking in China exhibits all of the following except:
A.
high savings rate.
B.
a well-qualified management.
C.
a large percentage of troubled loans.
D.
a general lack of access from outside the country.
E.
a growing economy.
89.
The biggest problem for international banks at the beginning of the 21st century is:
A.
the Internet.
B.
interest rate risk.
C.
foreign exchange risk.
D.
non-performing loans.
E.
None of the options is correct.
90.
The First National Bank of Summerville has opened an office in Turkey. This is a limited service office that can market services of the home office in Turkey and can identify Turkish customers but cannot take deposits or book loans. What type of office has the First National Bank of Summerville opened in Turkey?
A.
A representative office
B.
A shell branch
C.
A branch office
D.
A subsidiary
E.
An export trading company
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Advanced Accounting
Authors: Debra C. Jeter, Paul K. Chaney
7th edition
1119373204, 9781119373254 , 978-1119373209
