Which of the Below Statements Is FALSE

question 44

Multiple Choice

Which of the below statements is FALSE?

• A) Interest income and fee income are generated from mortgage lending and credit card financing.
• B) Fee income is generated from brokerage services and financial investment services.
• C) Loans to nonfinancial corporations, financial corporations, (such as life insurance companies), and government entities (state and local governments in the United States and foreign governments) fall into the category of institutional banking.
• D) Loans and leasing generate dividend income, and other services that banks offer institutional customers generate fee income.

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Definitions:

Retained Earnings

Profits that a company chooses not to distribute as dividends to shareholders but instead reinvests in the business or keeps as reserve.

Depreciation

A technique for distributing the expense of a physical asset across its lifespan.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Common Stock

Type of equity ownership in a corporation, entitling holders to vote at shareholder meetings and to receive dividends.