What type of securities can be obligations of international or multinational banks and organizations?

Type II securities represent obligations of international or multinational banks and organizations due to their structured nature. These securities include instruments such as bonds and notes that are issued by entities operating across national borders, which may have more diversified risk profiles compared to domestic securities. As a result, they are often viewed as critical tools for financing and investment in the global economy. The standards for these securities take into account factors like credit rating, currency exposure, and geopolitical risk, thus making them distinct from other types of securities.

The other types of securities mentioned do not typically represent obligations from international or multinational entities. For instance, Type I securities may be focused more on domestic issuers, while Type III and Type IV securities can encompass various categories that do not specifically cover the obligations from the international or multinational spectrum. This differentiation is key for financial auditors and investors, as understanding these distinctions can influence investment strategy and risk assessment.