Multiple Choice
A bank holding company has a banking affiliate and a securities affiliate.If the securities affiliate fails, it could cause the bank to also fail because
A) the bank holding company could use funds from the banking affiliate to provide funds to the securities affiliate by downstreaming.
B) the bank holding company could use funds from the banking affiliate to provide funds to the securities affiliate by upstreaming.
C) the bank holding company could induce the banking affiliate to make loans to the securities affiliate.
D) the bank holding company could use funds from the banking affiliate to provide funds to the securities affiliate by downstreaming and could induce the banking affiliate to make loans to the securities affiliate.
E) the bank holding company could use funds from the banking affiliate to provide funds to the securities affiliate by upstreaming and could induce the banking affiliate to make loans to the securities affiliate.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: Information transfer refers to the conflict of
Q9: Concern about the ability to analyze a
Q10: Which of the following is NOT a
Q11: The existence of the "too big to
Q12: The Financial Services Modernization Act of 1999
Q14: The following three FIs dominate a
Q15: Concern about bank solvency has been used
Q16: The establishment of a global or international
Q17: The following three FIs dominate a
Q18: Success in a merger from revenue enhancement