BANKING QUIZ

What is the primary focus of international banking?

• a. Providing retail services to individuals
  

• b. Facilitating financial transactions between countries
  

• c. Offering investment advice to corporations
  

• d. Managing local branches of a bank

Which institution is often considered a key player in international banking?

• a. Local credit union
  

• b. Regional government bank
  

• c. Central bank
  

• d. Community bank

Which currency is commonly used as the primary reserve currency in international banking?

• a. Euro
  

• b. Yen
  

• c. Pound Sterling
  

• d. U.S. Dollar

In international banking, what does the term "FOREX" refer to?

• a. Foreign exchange
  

• b. Financial oversight and regulation
  

• c. Federation of Exotic Securities
  

• d. Formal exchange rates

What is the function of an offshore bank in the context of international banking?

• a. Providing services only to local residents
  

• b. Facilitating international transactions and holding foreign currency deposits
  

• c. Offering retail banking services
  

• d. Managing local government finances

Which international organization is responsible for providing financial assistance to countries facing balance of payments problems?

• a. International Monetary Fund (IMF)
  

• b. World Bank
  

• c. Bank for International Settlements (BIS)
  

• d. European Central Bank (ECB)

What is the primary purpose of currency exchange markets in international banking?

• a. Issuing credit cards
  

• b. Facilitating the exchange of different currencies at market rates
  

• c. Providing mortgage loans to global customers
  

• d. Managing local branch finances

What is the purpose of an International Trade Finance (ITF) facility in international banking?

• a. Providing retail banking services to individuals
  

• b. Facilitating secure international trade transactions for businesses
  

• c. Offering investment advice to corporations
  

• d. Issuing credit cards for global use

In the context of international banking, what does the term "LIBOR" stand for?

• a. London International Bank of Reserves
  

• b. Local Interest Banking Oversight Rate
  

• c. London Interbank Offered Rate
  

• d. Large International Business Operations Registry

Which term refers to the risk associated with changes in exchange rates in international banking?

• a. Credit risk
  

• b. Market risk
  

• c. Currency risk
  

• d. Liquidity risk