Which of the Following Observations Is NOT True

question 87

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.

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Definitions:

Necessary

Something essential or required in a particular situation, often used to describe conditions or actions needed to achieve a specific result.

Social Status

The position or rank of a person or group within the society, often determined by wealth, occupation, education, or family lineage.

Express Ratification

The explicit, formal approval or confirmation of an act or contract by the person who is bound by the act or contract, typically done after the act has been completed.

Implied Ratification

The tacit approval or acceptance of an act by behaving in a manner that assumes the act was properly authorized.