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Offshore Financial Center
It is a location with banking facilities to accept deposits and make loans in currencies various from the currency's country of origin. Banks located in offshore financial centers are exempt from the bank's home country banking regulations. All off- shore financial centers, including those in the United States, offer tax preferences-commonly, but not always, in the form of tax-free remittances of earnings to an offshore parent organization.
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APPLICABILIYI OF THE OPERETING CYCLE
Explain official reserve assets and its major components. Answer: Official reserve assets are those financial assets which can be employed as international means of payments.
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