When FIs Form Off-Balance Sheet Subsidiaries to Remove Assets from Their

question 82

Multiple Choice

When FIs form off-balance sheet subsidiaries to remove assets from their balance sheet,the subsidiary activities

• A)are regulated as though they are part of the parent institution.
• B)occur beyond the reach of existing state and federal monitoring and regulation.
• C)are monitored and regulated by the Securities and Exchange Commission (SEC).
• D)are reported to the National Association of Securities Dealers (NASD).

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Definitions:

Research and Development

The part of a business activity that is concerned with acquiring new knowledge and using it to develop new products, processes, or services or to improve existing ones.

Technological Application

The use or implementation of technology for practical purposes, especially in industry or commerce.

Research and Development Spending

Financial investments in the innovation, improvement, and development of new products, services, or technologies.

Government Proportion

This term is not standard and may refer to the ratio or percentage of government spending or representation in relation to something specific, such as GDP or population, but without more context, a precise definition cannot be provided.