Which of the Following Is False

question 36

Multiple Choice

Which of the following is false?

• A)State-chartered banks can, if they choose, belong to the Fed and/or subscribe to FDIC insurance.
• B)Nearly all banks subscribe to FDIC insurance.
• C)Although only about 30 percent have federal charters and belong to the Fed, these banks tend to be the smallest and have the most deposits and banking offices.
• D)The McFadden Act outlawed interstate branching by national banks.

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Definitions:

Treasury Stock

Shares that were issued and subsequently repurchased by the company, reducing the amount of outstanding stock on the open market.

Total Assets

The combined value of all assets, including cash, inventory, property, and equipment, owned by a person or business.

Stockholders' Equity

The portion of a company's assets that belongs to its shareholders, represented by capital stock and retained earnings.

Corporate Form

A business structure where the company operates as a separate legal entity from its owners, providing limited liability protection but facing double taxation.