Which statement is true about the banking systems that constitute the

international banking system?

O

A. Each can overrule the decisions of the others.

O

B. Each has its own rules.

O

C. Each has its headquarters in the United States.

O

D. Each can override the requirements made by the United States.

The correct answer is B. It is true that each of the banking systems that constitute the international banking system has its own rules.

Explanation:

The international banking system is the interplay of financial markets, regulated financial intermediaries such as banks and insurance companies, central banks and international organizations such as the International Monetary Fund.

The importance of the international banking system increased due to increasing globalization, which was promoted by technical innovations such as telecommunications and the Internet on the one hand and the victory of the model of the free market economy on the other.

The only drawback that this system may have lies in the differences that each country may have with respect to the regulations of its banking institutions, which differ from country to country.