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Which banking services does a multinational corporation especially need?
ADeposit insurance and a charter in every host country
BRetail branches and cash counters in every city
CConsumer credit rules and margin requirements
DCurrency exchange and funding for overseas investment
Answer & Solution
Correct answer: D. Currency exchange and funding for overseas investment
1. A multinational corporation earns and spends in more than one currency.
2. It therefore needs foreign currency exchange as a routine banking service.
3. It also needs funding for its overseas investments.
4. Consumer credit rules and margin requirements are regulations imposed by a central bank, not services a bank sells.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 15 "Understanding Money and Financial Institutions", section 15.5 International Banking_
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