Which of the Following Observations Is NOT True

question 4

Multiple Choice

Which of the following observations is NOT true?

• A)The settlement risk that an FI is exposed to within-day appears on its balance sheet.
• B)Settlement Risk is a form of OBS risk that FIs participating on private wholesale wire transfer system networks face.
• C)A holding company is a corporation that owns more than 25 percent of the shares of other corporations.
• D)Failure of an affiliated firm or bank imposes affiliate risk on another bank in a holding company structure in a number of ways.
• E)Investors do not distinguish between the failing corporation and its surviving affiliate because of name similarity.

---

Definitions:

Government Unit

An organizational entity within the government structure, which could include departments, agencies, or other sub-divisions responsible for specific tasks.

Trash Collection

The process of gathering and removing waste materials from homes, businesses, and other sites to ensure cleanliness and sanitation.

North American Industry Classification System

A classification system used to categorize businesses and industries in North America based on their primary business activities.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services at all levels within a society.