What is a bank that specializes in foreign currency-denominated deposits and loans called ?
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Answer: B. Foreign bank
Explanation
A foreign bank specializes in conducting international financial transactions and maintaining foreign currency accounts. These institutions operate across national borders to serve clients requiring cross-border banking services. They facilitate global trade by handling foreign currency-denominated deposits and international loans. International banking networks allow multinational corporations to manage funds in multiple currencies. Foreign banks must comply with both home country regulations and host country banking laws. Foreign exchange markets rely on these banks to execute currency conversions for global clients.
Multinational corporations use foreign banks to manage payroll and supplier payments in foreign currencies. An example is a Japanese bank operating a branch in London to handle European financial transactions. These banks are essential for facilitating international investments and global supply chain payments. Eurobank specifically refers to banks holding deposits in currencies outside their home countries, not all foreign banks. International Bank is a general descriptive term rather than the specific banking specialization requested. Multinational Bank usually describes large institutions operating across many countries rather than specialized foreign units.
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