Question
Which of the following is an example of expropriation when FIs expand internationally? Foreign accounting standards may differ from the generally accepted accounting principles used
Which of the following is an example of expropriation when FIs expand internationally?
Foreign accounting standards may differ from the generally accepted accounting principles used in the U.S. | ||
To develop a strong customer base, FIs must face heavy fixed costs such as acquisition of other local entities. | ||
FIs face substantial political risks in unstable countries. | ||
FIs may be able to diversify risks and obtain greater potential for earnings. | ||
None of the above. |
Which of the following is not true regarding a traditional bank run?
It is caused when depositors rush to withdraw their money because they feared a bank will fail. | ||
Banks fail because they have their funds tied in long-term loans. | ||
It can no longer occur because deposits are insured by the FDIC. | ||
It caused the Great Depression. | ||
None of the above. |
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