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    Question

    What is the role of regional financial centers in the global financial system?

    A They do not play a significant role in the global financial system. Correct Answer Incorrect Answer
    B They serve as intermediaries between national and global financial systems. Correct Answer Incorrect Answer
    C They provide financial services exclusively to their respective regions. Correct Answer Incorrect Answer
    D They compete with traditional financial centers for global market share. Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Regional financial centers serve specific regional economies rather than just national economies. Examples include Singapore and Hong Kong for Asia, and Dubai for the Middle East. They are smaller than traditional centers but still play a significant role in the global financial system. They offer specialized financial services tailored to their respective regions, such as Islamic finance in the Middle East and wealth management in Singapore.  

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