When a Bank Serves as a Security Dealer for Certain

question 8

Multiple Choice

When a bank serves as a security dealer for certain kinds of securities (mainly federal,state,and local government obligations) the value of these securities is usually recorded in what account on a bank's Report of Condition?

• A)Investment securities
• B)Taxable and tax-exempt assets
• C)Trading account assets
• D)Secondary reserves
• E)None of the options are correct.

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Definitions:

Limited Partners

Investors in a partnership whose liability is limited to the amount of their investment in the partnership.

Limited Liability

A legal structure that limits the personal financial liability of the owners or shareholders of a company to the amount that they have invested.

Limited Partnerships

A business structure where some partners have limited liabilities and are not involved in daily management, contrasting with general partners who have unlimited liability.

Derivative Securities

Financial assets that represent claims to another financial asset.