Banks' Asset Portfolios Include State and Local Government Securities Because

question 58

Multiple Choice

Banks' asset portfolios include state and local government securities because

• A)they help to attract business from these government entities.
• B)banks consider them helpful in attracting accounts of Federal employees.
• C)the Federal Reserve requires member banks to buy securities from state and local governments located within their respective Federal Reserve districts.
• D)there is no default-risk with state and local government securities.

Understand the concept of the business entity and its implications for accounting practices.

Differentiate between types of businesses and their operational activities.

Comprehend the fundamental accounting concepts including the business entity concept and the cost concept.

Recognize the significance and application of Generally Accepted Accounting Principles (GAAP).

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Definitions:

Gestures

Movements of the body, especially hands and arms, that convey a message or meaning without using words.

Paralanguage Cues

Non-verbal elements of communication used to modify meaning and convey emotion, such as tone of voice, loudness, pitch, and pace.

Verbal Cues

The spoken signals used in communication to convey messages, emotions, or intentions to others.

Metalanguage Cues

Signals or hints within a communication that help to interpret or understand the meaning, context, or intention of the primary message.