Banks' Asset Portfolios Include State and Local Government Securities Because

question 58

Multiple Choice

Banks' asset portfolios include state and local government securities because

• A)they help to attract business from these government entities.
• B)banks consider them helpful in attracting accounts of Federal employees.
• C)the Federal Reserve requires member banks to buy securities from state and local governments located within their respective Federal Reserve districts.
• D)there is no default-risk with state and local government securities.

---

Definitions:

Blastocoel

The fluid-filled cavity that forms inside the blastula, an early stage in the embryonic development of animals.

Capacitation

A physiological change that sperm undergo to gain the ability to penetrate and fertilize an egg.

Allantois

An extra-embryonic membrane in birds, reptiles, and mammals that is involved in gas exchange and waste removal.

Nitrogenous Wastes

Nitrogenous wastes are metabolic waste compounds that contain nitrogen, such as urea and ammonia, which are produced by the breakdown of proteins and nucleic acids.