P Ltd Owns 60% of a Ltd Which Owns 90

question 5

Multiple Choice

P Ltd owns 60% of A Ltd which owns 90% of B Ltd.What is the indirect parent entity interest in B Ltd?

• A)6%
• B)40%
• C)36%
• D)54%

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Definitions:

Excess Reserves

Capital reserves held by banks that surpass the minimum reserve requirements, providing liquidity and stability to the banking system.

Money Supply

The total quantity of monetary assets available in an economy at a specific time, including notes, coins, and balances held in checking and savings accounts.

Discount Rate

The cost imposed on banks and similar entities for borrowing funds from the Federal Reserve's discount window.

Commercial Banks

Financial institutions that offer a wide range of services, including accepting deposits, providing loans, and other investment products to individuals and businesses.