midterm prof kerbel t/f;mc-group F

Who is considered the direct ancestors of modern commercial banks?
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Terms in this set (39)
What country is not part of an Offshore Banking CenterspainWhat characteristic is true about the International Banking Facilities)Authorized to conduct international banking business without the restrictions that apply to the domestic marketThe Federal Reserve Act of 1913 allowed national banks to finance foreign trades and banks with more than $1 million in capital and surplus were able to open global branches.trueCredit Cooperatives were created to repress the rural financial system. TRUEfalseWhat year did investment banks fully become operational?1980sWhat is the major component of the U.K banking sector?foreign banksForeign Bank agencies are generally used for wholesale national commercial transactionsfalseCHIPS: System used to acquire equipment, obtain subscribers & computerized communications network to handle the clearing of interbank money transfers & facilitate clearing of Eurodollar transactionstrueWhen a company directly offers new stock to existing shareholders, the offering is called ?direct rights offerWhat is another terminology used for initial public offering ?unseasoned new issueEurobond refers to a debt instrument that it's denominated currency is the same from the home country or market that it was issued.trueIn order to protect retail investors, many countries require annual reporting and minimum disclosure standards for new issues.trueWhich of the following is not an advantage of IPOsincrease regulatory burden__________ is a type of transaction in which investors seek to profit when the same good sells at two different pricesarbitrageOffshore centers are usually located in a domestic country.tAlthough losing importance to Singapore, the largest offshore financial center is still Switzerland.tWhich of the following is a function of an OFC?provide financial policySwitzerland has been notorious for?secret and confidentialityInternational retail banking is only aimed at individuals.tPrivate banking deals with the provision of wealth management services to high and low net worth individuals.FIn which Continent International Private Banking originated?EUROPEWhich of the following is NOT a category of client's wealth?Religious Wealth*Two systems of law must be negotiated in any international lending transactionTThe Calvo Doctrine states that a foreigner doing business in the United States is not obliged to be governed by local law.FWhich is the most common limit that banks in the United States and some other countries allow for lending to prevent overexposure to credit riskA) 15% *In what year did the U.S. Foreign Sovereign Immunities Act (FSIA) was implemented?1976*Credit analysis is the process through which a lender determines a borrower's ability to repay a loan in accordance with the terms of a loan contract.TThe Five Cs of credit are character, capacity, capital, collateral and conditions. TRUE/*FALSEWhat does the term "character" mean when referring to lending?*Strong desire to settle contractual obligations.