Which of the Following Observations Concerning Trust Departments Is True

question 186

Multiple Choice

Which of the following observations concerning trust departments is true?

• A)They are found only among smaller community banks.
• B)Only the largest banks have sufficient staff to offer trust services.
• C)They provide banking services to other banks.
• D)Pension fund assets are the largest category of assets managed by trust departments.

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Definitions:

Supermajority Voting

The board needs more than a simple majority of directors to vote in favor of an action before the action is possible; for example, it may require a 2/3 or unanimous vote prior to action.

Managerial Discretion

The degree of freedom managers have in making decisions without needing direct approval from higher-ups.

Fraudulent Conduct

Deceptive actions or behavior intended to gain an unfair advantage or to deceive others, often leading to financial or personal loss for the victim.

Voting Power

The total number of votes shareholdings represent, allowing shareholders influence over corporate decisions.