ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Branch banks
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Subsidiary banks
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Affiliated banks
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Offshore financial centers
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Detailed explanation-1: -All service such as fund management, brokering, insurance, holding company registration, fiduciary services and internet gaming are available in offshore banking.
Detailed explanation-2: -An offshore banking unit (OBU) is a bank shell branch, located in another international financial center. For instance, a London-based bank with a branch located in Delhi. Offshore banking units make loans in the Eurocurrency market when they accept deposits from foreign banks and other OBUs.
Detailed explanation-3: -An Offshore Financial Center, otherwise known as an OFC, is defined as a country or jurisdiction that makes available financial services to non residents with the purpose of circumventing aspects of the non-resident’s home country or jurisdiction.
Detailed explanation-4: -Offshore Financial Centers (OFCs) are financial centers where nonresident foreign currency funds are deposited and then channeled through offshore financial intermediaries to other nonresident borrowers.