If a State-Chartered Bank Wishes to Join the Federal Reserve

question 67

Multiple Choice

If a state-chartered bank wishes to join the Federal Reserve System, it must do which of the following?

• A)change its charter to a national bank
• B)become part of a bank holding company
• C)subscribe to federal deposit insurance
• D)All of the above are correct.

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Definitions:

Non-Controlling Interest

represents the portion of equity in a subsidiary not attributable, directly or indirectly, to the parent company, reflecting the minority shareholders' claim on the subsidiary's assets and earnings.

Subsidiary

A company controlled by another company, known as the parent company, usually through ownership of more than 50% of its voting stock.

Indirect NCI

An accounting term referring to the portion of equity in a subsidiary not directly attributable to the parent company, calculated on a proportional basis.

Ownership Interest

A stake or share in an asset or entity, giving the holder a claim to a portion of its equity or assets and possibly a share in its profits.