Regulators Do Not Consider a Financial Institution to Be a Bank

question 9

Multiple Choice

Regulators do not consider a financial institution to be a bank if it does not

• A) take deposits.
• B) borrow from the Fed.
• C) both of the above.
• D) neither of the above.

---

Definitions:

Cost of Goods Sold

The expenses directly related to the manufacturing of products a company sells, which includes the cost of materials and labor.

Gross Profit

The difference between revenue and the cost of goods sold, indicating how efficiently a company produces goods.

Operating Expenses

Costs associated with a company's main operational activities, excluding direct materials, direct labor, and other direct costs, such as rent, utilities, and salaries.

Gross Profit

A financial measurement obtained by deducting the cost of goods sold from the overall sales revenue.