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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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