Which of the Following Observations Is NOT True

question 4

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.

---

Definitions:

Spruce Budworm

A forest pest that feeds on the needles of spruce and fir trees, often causing significant damage to forests.

Dutch Elm Disease

Dutch Elm Disease is a fungal disease spread by bark beetles, primarily affecting elm trees, leading to foliage wilting, branch dieback, and potentially the death of the tree.

Chestnut Blight

A fungal disease caused by Cryphonectria parasitica, which has devastated chestnut trees in North America by causing cankers that girdle and kill the trees.

Net Productivity

is the rate at which energy or biomass accumulates in an ecosystem's producers, after subtracting the energy used in respiration, representing the amount of new biological material.