FINA 4500 Exam Practice Questions with
Verified Correct Answers
Banks that provide a majority of international banking services are commonly known as
which types of banks?
- full service
- universal
What are currently the three most important financial centers?
London, New York, Tokyo
When banks establish multinational operations to prevent the erosion of their clientele to
foreign banks seeking to serve the multinational's foreign subsidiaries, it is Blank______
defensive strategy, and when they do so to prevent the erosion of their traveler's check,
tourist, and foreign business markets from foreign bank competition, it is Blank______
defensive strategy.
Wholesale; retail
True or false: A correspondent bank relationship is established when two banks maintain a
correspondent bank account with one another.
True
A foreign branch bank operates like a local bank, but legally it is a part of the
parent bank
Which are features of international banks and not of domestic banks?
-Facilitate the imports and exports of their clients by arranging trade financing
-Borrow and lend in the Eurocurrency market
-Frequently participate in international loan syndicates
A rationale for a bank to establish multinational operations is that the managerial and
marketing knowledge developed at home may make the provision of services in an additional
country inexpensive, that is, there may be low:
marginal costs
Verified Correct Answers
Banks that provide a majority of international banking services are commonly known as
which types of banks?
- full service
- universal
What are currently the three most important financial centers?
London, New York, Tokyo
When banks establish multinational operations to prevent the erosion of their clientele to
foreign banks seeking to serve the multinational's foreign subsidiaries, it is Blank______
defensive strategy, and when they do so to prevent the erosion of their traveler's check,
tourist, and foreign business markets from foreign bank competition, it is Blank______
defensive strategy.
Wholesale; retail
True or false: A correspondent bank relationship is established when two banks maintain a
correspondent bank account with one another.
True
A foreign branch bank operates like a local bank, but legally it is a part of the
parent bank
Which are features of international banks and not of domestic banks?
-Facilitate the imports and exports of their clients by arranging trade financing
-Borrow and lend in the Eurocurrency market
-Frequently participate in international loan syndicates
A rationale for a bank to establish multinational operations is that the managerial and
marketing knowledge developed at home may make the provision of services in an additional
country inexpensive, that is, there may be low:
marginal costs
