Which of the Following Is NOT a Corporate Practice Required

question 401

Multiple Choice

Which of the following is NOT a corporate practice required of bank holding companies?

• A) Each bank subsidiary must file a notice with the Federal Reserve before offering a new product.
• B) Each bank subsidiary must conduct its operations in a safe and sound manner.
• C) Each bank subsidiary must be insured by the FDIC.
• D) Each bank subsidiary must file a notice with the Federal Reserve before purchasing any of its own securities.

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Definitions:

Catharsis Hypothesis

The theory that expressing or experiencing strong emotions, particularly anger, can lead to a release of tension and a state of psychological refreshment.

Social Exchange Theory

A sociological and psychological theory proposing that social behavior is the result of an exchange process to maximize benefits and minimize costs.

Reciprocity Norm

A social norm that expects individuals to respond to each other in kind, returning benefits for benefits and responding with either indifference or hostility to harms.

Free Samples

Small quantities of a product given to consumers at no cost to introduce the product and encourage future purchasing.