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For downloading more course tutorials visit - http://entire-courses.com/ECO-316-Week-3-Chapter-16-Banking-in-the-International-Economy

In this pack of ECO 316 Week 3 Chapter 16 Banking in the International Economy you will find the answers to the following questions: 16.1 Multiple Choice Questions 1) Before World War II 2) Before World War II 3) Which of the following is NOT true of the U.S. economy before World War II? 4) By 2006, international bank lending in the United States, Western Europe, and Japan amounted to 5) The principal activities of international banking are 6) Which of the following is NOT one of the three leading financial centers in the world? 7) Which of the following countries has the longest history of international banking? 8) Participation in international banking by U.S. banks has 9) Which of the following is of greatest importance in explaining the rapid growth of international banking activities by Japanese banks during the 1980s? 10) During the 1990s, the share of international bank loans held by Japanese banks 11) An "offshore market" is 12) Which of the following does NOT represent an important offshore market? 13) Branches of U.S. banks in which city control the most assets? 14) Edge Act Corporations are 15) Which of the following may an Edge Act Corporation NOT do? 16) The activities of a U.S. bank holding company that owns a controlling interest in a foreign financial services company are governed by 17) IBFs are 18) Which of the following is NOT a reason that IBFs have been desirable to banks? 19) What percentage of total U.S. bank assets is held by foreign banks? 20) Experts studying the lending patterns of Japanese and other foreign-owned banks in the United States have found that these banks 21) An agency office of a foreign bank 22) Which of the following is true of an agency office of a foreign bank? 23) A foreign branch bank 24) The Riegle-Neal Act of 1994 25) A U.S. subsidiary of a foreign bank 26) The International Banking Act of 1978 27) The Foreign Bank Supervision Enhancement Act of 1991 was passed as a result of 28) The Foreign Bank Supervision Enhancement Act of 1991 29) As of 1997, about what percentage of Citicorp's assets are held abroad? 30) In which of the following countries has the Bank of China NOT shown significant expansion? 31) Banks are subject to exchange rate risk when 32) The Bank of Credit and Commerce International failed because of 33) A U.S. bank has ?50 million in deposits and makes a loan of ?100 million when the exchange rate is $1 = ?1. 5. If the exchange rate changes to $1 = ?2, then the bank's net worth will change by 34) A U.S. bank has ?75 million in deposits and makes a loan of ?90 million when the exchange rate is $1 = ?1. 5. If the exchange rate changes to $1 = ?1, then the bank's net worth will change by 35) How can a bank avoid exchange rate risk? 36) What is the approximate daily volume of foreign-exchange trading? 37) Most of the foreign-exchange trading volume of banks is with 38) Most of the foreign-exchange trading of banks is carried out in order to facilitate 39) A currency swap is 40) How may a U.S. bank keep its balance sheet entirely in U.S. dollars? 41) Why is credit risk in international commerce magnified? 42) A bankers' acceptance is 43) When were U.S. banks authorized to use bankers' acceptances for short-term financing of their customers' foreign and domestic trade? 44) The use of bankers' acceptances is most useful in reducing 45) Which of the following statements concerning the volume of outstanding bankers' acceptances in the United States since the 1920s is accurate? 46) Which of the following is true of bankers' acceptances? 47) Before World War II what was the leading global financial and commercial center? 48) What is the international transaction currency? 49) What was the international transaction currency before World War II? 50) The Eurodollar arose from 51) Eurodollars are 52) Which of the following was NOT an important factor in the rise of the Eurodollar market? 53) Eurocurrency deposits are 54) What is the dominant currency in the Euromarkets? 55) Since the late 1980s, the share of eurocurrency deposits denominated in dollars 56) A key reason the commercial paper market developed later in Europe than in the United States is that 57) Booking sites are 58) Through the early 1970s the largest borrowers on Euromarkets were 59) From the mid-1970s to the late 1980s the largest source of deposits in Euromarkets was 60) Today, the countries with large trade surpluses to deposit in Eurodollar accounts are 61) The LIBOR is the 62) The typical Eurodollar loan 63) What is the primary motivation for loan syndication in the Euroloan market? 64) Why did the volume of ly syndicated loans in Euromarkets decline during the 1970s and 1980s? 65) Eurobonds 66) The effect of evolving financial market regulation has been to 67) International coordination of minimum capital requirements for commercial banks began in 68) A key difficulty that banks encounter in lending to foreign governments is that 69) From 1970 until the early 1980s the creditworthiness of many developing nations was improving because 70) Currently, U.S. banks pay deposit insurance premiums on 71) Central banks have met to discuss their roles as lender of last resort several times at the 72) Discussion of the possibility of setting up an international lender of last resort began following the 73) In which of the following countries was a deposit insurance fund first established? 74) Recent research has found that deposit insurance 75) The most likely direction of bank regulation internationally will be to 76) Which of the following is likely to be true as the international coordination of bank regulation continues? 77) The growth of Islamic banking in recent years has occurred for all of the following reasons EXCEPT 78) A problem facing Islamic banking is 79) The bulk of financing by Islamic banks involves 80) In the Islamic religion, it is forbidden to 16.2 Essay Questions 1) Why was international banking unimportant for U.S. banks, savers, and borrowers before World War II? Is it likely that its importance may ever recede to a low level again? 2) Which countries are the most important centers of international banking? Why is international banking concentrated in these countries? 3) What is a Euroloan? What are its typical characteristics? Why is it very likely to be syndicated? 4) Suppose your bank has made a loan of 50 million euros, but has deposits of only 25 million euros. If the exchange rate was $1 = 0.75 euro at the time the loan was made, but subsequently changes to $1 = 0.90 euro, what is the impact on the net worth of your bank? Suppose the exchange rate changes to $1 = 0.65 euro?

For downloading more course tutorials visit - http://entire-courses.com/ECO-316-Week-3-Chapter-16-Banking-in-the-International-Economy

Economics - General Economics Week 1 Should You Invest Short Term? - Week1 DQ1 ECO316 What are the implications of a U.S. policy to “bail out” firms and heavily subsidize the economy? How could such a policy create inflation and higher interest rates? If you have cash available should you wait until interest rates rise? Treasury Inflation Protection Bonds - Week1 DQ2 ECO316 Week 2 New Product, Will I Be Rich? -Week2 DQ1 ECO316 My company just came out with a new product? Should I buy a bunch of company stock and get rich? What are the pros and cons of such an investment? Mutual Fund Regulation - Week2 DQ2 ECO316 From Chapter 12, complete problem 13 (page 276): Describe how mutual funds provide services related to risk sharing and liquidity. Distinguish a mutual fund from a bank. What do the differences you highlighted imply about the need for regulation of mutual funds as opposed to banks? Week 3 Exchange Rate Risk - Week3 DQ1 ECO316 From Chapter 16, complete problem 13 (page 382): Relate the problem of exchange rate risk in international banking to interest rate risk in domestic banking. On the basis of your understanding of interest rate risk, suggest strategies for managing exchange rate risk in international banking. Should I Expect a Bail Out? - Week3 DQ2 ECO316 From Chapter 15, complete problem 19 (page 363): Suppose that you manage a small SL that has a net worth of –$50 million. You fear that within two years, regulators will discover that your firm is insolvent and will shut you down. You have two possible investment strategies: (a) continue to operate as you have been, offering market interest rates on CDs to finance mortgage loans, or (b) offer higher than market interest rates on CDs and use the increased funds to speculate in junk bonds and real estate. Your analysis tells you that strategy (a) has a 10% chance of losing $10 million and a 90% chance of gaining $20 million, with an expected return of $17 million. Strategy (b) has an 80% chance of losing $50 million and a 20% chance of gaining $75 million, with an expected return of –$25 million. What strategy should you follow? Why? What are the consequences of your choice? What should a regulator do in this situation? How might your behavior change if you expect a government bail out? Impacts on Liquidity - Week 3 Assignment - ECO316 From Chapter 18, complete the case on pages 434-435. Your two to three page response should focus on selecting the most relevant factors and organizing them in a coherent fashion. Federal Reserve System and Politics - Week4 DQ1 ECO316 From Chapter 19, complete problem 12 (page 454): Evaluate: The Federal Reserve System is independent of the political process in the United States. Fed Impact on the Dollar - Week4 DQ2 ECO316 From Chapter 21 complete problem 14 (page 501): If the Fed wants to decrease the value of the dollar on foreign-exchange markets, what should it do? What should it do if it wants to increase the foreign-exchange value of the dollar? Week 5 Money Growth Rates and Recessions - Week 5 DQ1 ECO316 From Chapter 26, complete problem 14 (page 632): Suppose that you observed a substantial decline in the money growth rate six months before the start of every recession. Would that be enough to convince you that money affects output? Why or why not? Credit Crunch - Week 5 DQ2 ECO316 From Chapter 27, complete problem 15 (page 653): You have been assigned to determine whether the economy is experiencing a credit crunch. What patterns in movements in the federal funds rate, the volume of bank lending, and the volume of short-term lending in financial markets will you look for? Why? Week 5 - Final Paper - ECO316 Analyze the major problems that countries face in developing a balance between mortgage rates and an expansionary economy. Utilize the Chapter 27 case on pages 654-655, as well as outside resources, as a basis for developing your analysis.

For downloading more course tutorials visit - http://entire-courses.com/ECO-316-Week-3-Chapter-16-Banking-in-the-International-Economy

It is important that you map out your first day at school before your actual first day. Plan out the best strategy for navigating the campus, learning the amount of time it will take to get from class to class. In addition, find the other places that you plan to visit frequently, and note their location on your map.