Which of the Following Observations Is NOT True

Multiple Choice

Which of the following observations is NOT true?

A) The settlement risk that an FI is exposed to within-day appears on its balance sheet.
B) Settlement Risk is a form of OBS risk that FIs participating on private wholesale wire transfer system networks face.
C) A holding company is a corporation that owns more than 25 percent of the shares of other corporations.
D) Failure of an affiliated firm or bank imposes affiliate risk on another bank in a holding company structure in a number of ways.
E) Investors do not distinguish between the failing corporation and its surviving affiliate because of name similarity.