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) None of these.
E) the bank holding company could use funds from the banking affiliate to provide funds to the securities affiliate by upstreaming, and the bank holding company could induce the banking affiliate to make loans to the securities affiliate.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: Concern about bank solvency has been used
Q18: Success in a merger from revenue enhancement
Q63: Which of the following is a factor
Q64: The USA Patriot Act of 2001<br>A)requires U.S.
Q66: International expansion often produces revenue-risk diversification benefits
Q67: The following three FIs dominate a local
Q69: The banking industry in Canada has faced
Q70: The approval of cheap loans to an
Q116: The effect of the International Banking Act
Q124: If the firm commitment price is $15