Which Action of the Holding Company to Help Its Securities

question 57

Multiple Choice

Which action of the holding company to help its securities affiliate can damage the financial health of its banking subsidiary?

• A)Downstreaming funds from the subsidiary and then upstreaming it to the securities affiliate.
• B)Upstreaming funds from the securities affiliate and then downstreaming it to the bank subsidiary.
• C)Indulging in product diversification.
• D)Upstreaming funds from the bank subsidiary and then downstreaming it to the securities affiliate.
• E)Diversifying the earnings stream of a banking company geographically.

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Definitions:

Single By Choice

Opting to remain unmarried or not in a romantic relationship by preference rather than circumstance.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Cohabitating

Living together with another person in a long-term relationship without being legally married.

Spend

The act of using money to buy or pay for goods and services.