A Corporation Whose Shares Are Held by a Small Number

question 55

Multiple Choice

A corporation whose shares are held by a small number of individuals is referred to as a

• A)proprietorship.
• B)publicly traded corporation.
• C)small business corporation.
• D)privately held corporation.

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other financial institutions for the loans they take from the Federal Reserve Bank's lending facility.

Federal Reserve Banks

The 12 regional banks in the Federal Reserve System which serve as the central bank of the United States, responsible for implementing monetary policy, supervising and regulating financial institutions, and providing services to depository institutions, the U.S. government, and foreign official institutions.

Central Banks

National banks that provide financial and banking services for a country's government and commercial banking system, as well as implementing government's monetary policy and issuing currency.

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, determined by the central bank.