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FIN365 Intro to International Banking Part 1

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following is / are the chapter learning objective (s)?

a)

Preface of international banking

b)

Transformation of international banking

c)

Reasons that stimulate the development of international banking

d)

All are the chapter learning objectives

2.

Which of following can explain the concept of International Banking

a)

A bank in one country, which undertakes activities that involve it in some form of financial and banking businesses. (e.g loans/financing, advisory services, issuance of securities/bonds/sukuks) in home country

b)

The transactions with foreigners and domestic residents relating to: Depositing & lending/financing in domestic & local currencies

c)

The transactions with foreigners and domestic residents relating to: Facilitating international trade finance for clients

d)

The transactions with foreigners and host residents relating to: Offering investment banking services such as borrow or lend money in Eurocurrency markets & underwrite Eurobonds and foreign bonds.

3.

Who is/are the possible party(s) involved in International Banking?

a)

•Institutional Clients such as Perodua Sdn Bhd

b)

•Individual clients such as Air Asia Berhad

c)

•Corporate - Coca-Cola Sales Berhad

d)

None of them

4.

What is/are the difference(s) between local and foreign banks

a)

Regionally coverage

b)

Types of deposits they accept

c)

The medium of exchange accepted

d)

All are correct

5.

What are the essentials of International Banking?

a)

Integration, Liberalization & Globalization

b)

Institutional, Corporate & Individual clients

c)

Information services, Prestige & Banking regulation

d)

None of them

6.

Allows interchange of values,

Aligns with rapid development &

Generates interdependence

a)

LIBERALIZATION

b)

INTEGRATION

c)

CONNECTIVITY

d)

GLOBALIZATION

7.

Connectivity - integrated financial systems,

Improves risk-sharing opportunities,

Specializes in the most productive sectors - increases economic efficiency.

a)

LIBERALIZATION

b)

INTEGRATION

c)

CONNECTIVITY

d)

GLOBALIZATION

8.

No bias – equality,

Free competition,

Increases efficiency in the Long Run

a)

LIBERALIZATION

b)

INTEGRATION

c)

CONNECTIVITY

d)

GLOBALIZATION

9.

What kind of integrations could happen through the operation of International Banking?

a)

National Integration

b)

Knowledge Integration

c)

Regional integration

d)

All are correct

10.

A headquarter bank in a home country can offer financing to residents of host country through:

a)

Cross-border lending

b)

Local lending by affiliates established in the host country

c)

Lending booked by an affiliate established in a third country

d)

All are correct