A Bank Holding Company Must Obtain the Approval of the Fed

question 20

Multiple Choice

A bank holding company must obtain the approval of the Fed before acquiring more than _____ of the shares of an additional bank,bank holding company,or financial services firm.

• A)5 percent
• B)10 percent
• C)15 percent
• D)25 percent

---

Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied, typically upward sloping.

Sales Tax

A tax levied on the sale of goods and services, typically calculated as a percentage of the purchase price.

Perfectly Elastic

A situation in demand where consumers will buy an infinite quantity of goods at a certain price but none if the price increases even slightly.

Perfectly Inelastic

A demand situation where the quantity demanded does not change regardless of the price level.