International banking has both benefits and hazards. Assuming you are a legitimate individual or business concern, this form of banking may suit you to a T. Take this quiz to see whether you know the ins and outs of international banking.
What kinds of services does an international bank provide?
home auctions and trade-in services
laundry and wake-up call services
payment accounts and loan options
All international banks do business with "foreign clients." Who are they?
companies and individuals
What is the function of OCRA Worldwide?
It surveys large international banks.
It matches companies and individuals to international banks.
It offers insurance to companies and individuals throughout the banking world.
Do you need to have a certain capital to do business with an international bank?
No, any amount is fine.
It depends on the bank.
What is one of the main reasons that a person will choose to bank with an international bank?
to have long-distance communication
to avoid paying tax
to keep their money in euros
Why do companies generally decide to do business with international banks?
because the banking fees are cheap
because they want to facilitate international business
because the accounts can be kept secret
Which of these countries have little or no income tax?
Maldives and Sweden
Australia and Finland
Cayman Islands and Panama
What reasons do some rich people have for keeping their assets with international banks?
to stay rich or to buy housing properties in foreign countries
to get a higher interest or to avoid a financial crash
to invest in economies of booming countries or to keep their money safe from lawsuits
How much are international banks affected by domestic interest rate fluctuations?
a fair amount
not much at all
Why do international banks sometimes provide letters of credit?
so that companies in different countries will pay each other
so that people will be credited with what they have
so that domestic banks will follow suit
Who are the "Gnomes of Zurich"?
Swiss bankers who wear green suits and have pointy ears
Swiss bankers who, according to conspiracy theorists, run a super-secret organization
the citizens of Zurich who, according to conspiracy theorists, run a super-secret organization
Do international banks need to know the origin of your deposit?
Yes. They need to establish that it's not "hot."
No, as long as it's not counterfeit.
Yes. They need to know the money's minting history.
Once you've established your identity and provided pertinent documents, what does the bank do before opening an account?
It posts notices to allow time for objections to your application to surface.
It analyzes how risky a customer you are.
It phones your lawyer.
How safe is your money if you bank in a country that's on the verge of economic collapse?
not safe at all
very safe, if it's insured
quite safe, if you're with a reputable bank
Under what circumstances could you lose money if you bank internationally?
if you want to close your account
if there is a large bank robbery
if the value of the foreign currency plummets
Is it true that some Swiss bank accounts have numbered accounts whose owners are anonymous?
Yes, it was true up until fairly recently.
No, it is, and always was, a myth.
Yes, it's true today.
Until not long ago, there was some level of secrecy regarding the identities of international bank account holders. What changed all this?
the terror attacks of 9/11 (2001)
the Indian Ocean tsunami (2004)
the worldwide financial crash (2007)
What is the main difference between offshore accounts and international banking?
Offshore accounts are only banks within the European Union.
They're the same thing.
International banking refers to Asian and South American accounts only.
Mr. Smith has an international bank account but the IRS can't prove his ownership. What crime might Mr. Smith be up to?
What is the relationship between the Federal Deposit Insurance Corporation (FDIC) and foreign banks?
FDIC insures foreign banks for a hefty fee
FDIC does not insure foreign banks
FDIC insures foreign banks for a relatively small fee