Davidson; Management - 3rd Australasian Edition



1.
Bretton Woods established a system of rules, institutions and procedures to regulate the international monetary system.
A. True
B. False


2.
Contagion risk is market risk.
A. True
B. False


3.
Representative offices can accept deposits and make loans in the host country.
A. True
B. False


4.
A foreign subsidiary bank is a separately incorporated bank owned entirely or in part by
    a domestic bank.
A. True
B. False


5.
Creditors of the branch have limited claims on the bank's assets in case of default.
   
A. True
B. False


6.
An international loan syndicate is a risk reduction technique.
A. True
B. False


7.
The loans that banks make to international customers are foreign loans.
A. True
B. False


8.
Most international bank loans are unsecured.
A. True
B. False


9.
Sight drafts are similar to cash on delivery.
A. True
B. False


10.
Shell branches pay no local taxes and generally operate in relatively stable political environment.
A. True
B. False


11.
Representative offices are usually established to coordinate business between domestic and foreign banks.
A. True
B. False


12.
Shell branches are developed for international money market transactions without contact with the public of the host country.
A. True
B. False


13.
Ship financing in international lending involve huge amount of risks.
A. True
B. False


14.
Sovereign risk is similar to international banking risk.
A. True
B. False


15.
Pooling and third-party guarantees are two methods of reducing international currency risk.
A. True
B. False


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