Offshore Banking

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What is the main purpose of offshore banking?

Promoting local trade

Providing services in foreign jurisdictions with financial benefits

Reducing domestic regulations

Supporting microfinance institutions

Which of the following is a common feature of offshore banking jurisdictions?

High tax rates

Strict regulatory oversight

Low or zero tax rates

Mandatory domestic residency

Offshore banking units (OBUs) are typically established:

To provide retail banking services

To facilitate international financial transactions

For government savings schemes

For providing agricultural loans

Which of the following is NOT a benefit of offshore banking?

Privacy and confidentiality

High regulatory transparency

Asset protection

Tax efficiency

The term “tax haven” is often associated with offshore banking. Which of the following is a characteristic of a tax haven?

High withholding taxes on foreign investments

Strict exchange controls

No or very low tax on income or profits

Mandatory capital controls