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:

Basic Emotions

A set of universally experienced emotions from which more complex emotions are derived, typically including happiness, sadness, fear, disgust, anger, and surprise.

Innate

Traits, behaviors, or abilities that are present from birth, not acquired or learned.

Emotions Universal

The theory that certain emotions are experienced by all humans regardless of culture or background.

Preceded by Cognition

Indicates that a thought process or mental activity occurs before a specific action or behavior.