In Which of the Following Situations Does a Bank Need

question 22

Multiple Choice

In which of the following situations does a bank need to post a branch closing notice?

• A) A bank closes a branch temporarily because of heavy hurricane damage.
• B) A bank closes a branch in a suburban neighborhood because business has not adequately developed there.
• C) A bank decides not to exercise its option to purchase a branch it has been temporarily running for the FDIC as a part of a purchase of a failed institution.
• D) A bank closes a branch and moves it 850 feet down the street.

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Definitions:

Efficient Market Hypothesis

The theory that all existing information is already reflected in securities prices, thus making it impossible to consistently achieve higher returns.

Dissemination

The process of spreading information, knowledge, or ideas to a large number of people.

Executive Stock Option

A privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.