Which of the Following Is NOT a Back-Office Service Function

question 8

Multiple Choice

Which of the following is NOT a back-office service function in the securities industry?

• A)Correspondent banking services.
• B)Escrow services.
• C)Clearance of securities transactions.
• D)Research services.
• E)Services related to settlement of securities transactions.

---

Definitions:

Discount Rate

It refers to the rate used in discounted cash flow analysis for the purpose of calculating the present value of future expected cash flows.

Preferred Stock

A type of stock that provides a fixed dividend before any dividends are paid to common stockholders and usually has no voting rights.

Debt

A sum of money lent by one individual to another, with the agreement that it will be returned at a future time, typically with additional interest.

Sinking Fund

Account managed by the bond trustee for early bond redemption.