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    Question

    Which of the following is not one of the roles played by Global Financial Centres?

    A Providing a platform for cross-border financial transactions Correct Answer Incorrect Answer
    B Developing financial infrastructure Correct Answer Incorrect Answer
    C Encouraging foreign investment Correct Answer Incorrect Answer
    D Promoting financial liberalization Correct Answer Incorrect Answer
    E Promoting Liberal Political Set up in the host country Correct Answer Incorrect Answer

    Solution

    GFCs can play a significant role in facilitating capital account convertibility, i.e. the ability of individuals and institutions to freely move capital in and out of a country's financial system. Global financial centers play an important role in facilitating capital account convertibility, by providing a platform for cross-border financial transactions, developing financial infrastructure, encouraging foreign investment, promoting financial liberalization, and influencing international financial policy.

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