Which of the Following Would Not Be Part of Primary

question 119

Multiple Choice

Which of the following would not be part of primary bank capital?

• A) bank premises
• B) common stock of the bank
• C) loan loss reserves
• D) perpetual preferred stock

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Definitions:

Private Sector

The private sector encompasses businesses and activities not owned or directly managed by the government, operating primarily through the private enterprise and market system.

Balanced Budget

A financial situation where revenues are equal to expenditures, resulting in no deficit or surplus.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in real GDP, real income, employment, industrial production.

Constitutional Amendment

A formal change or addition to a constitution, often requiring a specific process and approval to be enacted.