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Question
A bank, concerned about risk exposure in entering a foreign market, lacking the necessary expertise and customer contacts abroad, or wishing to offer services restricted to banks alone, may choose to:
A. set up a branch office.
B. enter into a joint venture with a foreign financial firm.
C. set up an agency office.
D. set up a representative office.
E. set up a shell branch.
Answer
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Related questions
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Which of the following adjustments are made to gross loans and leases to obtain net loans and leases?
A. Loan and lease loss allowance is added to gross loans.
B. Unearned income is subtracted from gross interest received.
C. Investment income is added to gross interest received.
D. Loan and lease loss allowance and unearned income is subtracted from gross loans.
E. Loan and lease loss allowance is subtracted from gross loans and investment income is added to gross interest received.
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Which of the following would not be a telephone service that customers can get from a bank call center?
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A(n) _________________________ is an agreement between a buyer and a seller today which calls for the delivery of a particular security in exchange for cash at some future date for a set price.
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What is the yield to maturity on this T-Bill?
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Which of the following would be an example of a repriceable asset?
A. Money the bank has borrowed from the money market
B. Cash in the vault
C. Demand deposits that do not pay interest
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A. deposits and non-deposit borrowings are not affected by changes in interest rates.
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According to the textbook, the lackadaisical profit performance surrounding a merger may be explained by the:
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C. accounting irregularities when reporting earnings of the combined entity.
D. managerial hubris and sizeable merger premium that acquirers have to pay to shareholders of the acquired firms.
E. All of the options are correct.
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According to the textbook, bank mergers are often motivated by:
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C. expected tax benefits.
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