Which Action of the Holding Company to Help Its Securities

question 35

Multiple Choice

Which action of the holding company to help its securities affiliate can damage the financial health of its banking subsidiary?

• A)Downstreaming funds from the subsidiary and then upstreaming it to the securities affiliate.
• B)Upstreaming funds from the securities affiliate and then downstreaming it to the bank subsidiary.
• C)Indulging in product diversification.
• D)Upstreaming funds from the bank subsidiary and then downstreaming it to the securities affiliate.

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Definitions:

Mores

Socially accepted standards and customs that are considered essential to the well-being and functioning of a culture or society.

Folkways

Norms for routine or casual interaction; these are the everyday practices and customs that guide social behavior in a society.

Laws

Established rules of conduct enforced by governmental authority to maintain order and protect rights and properties.

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The process by which information is exchanged or conveyed between individuals through a common system of symbols, signs, or behavior.